Scuderia Ferrari Team Principal Mattia Binotto feels that at this moment Formula 1 has become too expensive and that the sport needs to take action in order to assure the costs are reduced.
For many years, Scuderia Ferrari was willing in invest a lot of money in Formula 1 and was therefore not in favour of limiting finances. Yet Mattia Binotto now offers a different view and points to the fact that the current Formula 1 engines are becoming a financial issue:
“Ferrari as an entire company, it’s a very healthy company. Even if you look during the COVID-19 pandemic, the results as well the results we are having during this year, it’s a healthy company. But we know as was that expenditure in F1 is too excessive at the moment and cannot be afforded in the future because it makes no sense. As simple as that. If you look at the power unit itself, compared to the cost of a single power unit at the time when it was normally-aspirated today, it’s costs six times more and I think it makes no sense. We used to be capable of doing a lot of activity on the dynos because the engines were not costing too much. Today, we cannot afford such an activity on the dyno simply because the power unit costs too much. I think we need to reduce costs, because by reducing costs, eventually there will be some more possibilities on development in the future.” – the Ferrari boss explained on this matter.
The first steps have been taken, as Formula 1 agreed on a budget cap starting with the 2020 championship, as the sports attempts to reduce costs. In 2020 the cap is €120 million, while next season the cap will gradually decrease to €115 and in 2023 it will be €108.
Mattia Binotto reflects on the implications that the budget cap has had so far for the Formula 1 teams:
“Obviously, we are now almost in the summer so most of the expenses of this season have been done. Normally in the very first month you are spending most of your money because you need to build the new cars and purchase material. In order to match with the budget cap, a lot of jobs have been done, even last year, I think that we structured ourselves in a way of managing in a very precise and efficient way. I think the main changes which are required, whatever the organisation is, whatever the way we are spending where we set, we set our tools and follow our plans. So at the moment, I think we are fully in line with the objectives. It’s a matter of monitoring through the season, no doubt, careful monitoring. But at the moment, I think we are not cutting. I think we are already at the level where we should be and it’s a matter of maximising the opportunities.” – the Ferrari boss explained.
Regarding the criticism that the budget cap will limit technical innovation in F1, Mattia Binotto added:
“I’m not too sure. In F1 there are always regulations and what we are doing is pushing ourselves to the limit of the regulations in innovating within the framework of the regulations. We have technical, sporting regulation and now there are financial regulations, fair enough. The spirit is to somehow try to innovate to the maximum. So there will still be innovations that matter but now we need to be more efficient and chase each single [inefficiency]. What we are doing as Ferrari and the other top teams at the moment is before we cut any opportunities for development is to ensure that we are efficient and chasing wastage. In that respect there is much that can be done, which means that the financial regulations will help F1 teams become more efficient in the future, which is good and which is also innovation. It’s not technical innovation, but it’s still innovation. Lean engineering is something which is becoming more and more important.” – he added.
The Ferrari boss also confirmed that simulation tools provide “the cheapest way of developing” in Formula 1: “There is so much which is so complex [in the wider automotive field] that you need good simulations, otherwise expenditure will be too significant. So F1 can become a platform for innovation in this respect.” – Mattia Binotto concluded.
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