Spanish F1 Grand Prix - Practice

Is the idea of a cost cap in Formula 1 really dead?

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As costs continual to spiral in Formula 1, there has been a long-running push for a limit on how much teams spend to be put in place. Many efforts have been made, but all have failed, and with the teams recently meeting to discuss their options, one big question has arisen: is it really possible?

At yesterday’s FIA team principals’ press conference, some interesting figures were asked to attend. Marussia, Caterham, Force India, Sauber and Toro Rosso were all represented by their team bosses, and predictably, questions about the cost cap and the newly-formed F1 Strategy Group came up.

What separates some of these teams from the rest of the field is there backing. Whilst Ferrari and Mercedes have their successful road car sales funding them, and Red Bull has millions of little cans of fizzy drink that give you a kick, the likes of Force India and Sauber have nothing they can actively sell to fund their racing. They exist to race in Formula 1.

So for the cost cap, it’s unsurprising that it is these ‘privateer’ teams that are in favor.

“I don’t believe the cost cap is dead,” Force India’s Bob Fernley explained. “I think as far as we’re concerned it’s still in the hands of the FIA to progress what was unanimously approved and we will do our very best to support other measures that can go in line, but I think you need the two.”

Monisha Kaltenborn of Sauber shares this view. “I don’t think it’s dead because first of all, as it’s been said already, there is a unanimous decision and I think it is very much possible to police it,” she said. “We, at Sauber, definitely could live with a system where you first of all come into with trust, and not the lack of trust, and say if the teams put in the figures and you have a certain actual policing system.

“It can work, we’ve been saying that for long and I think it is very much doable.”

The only person in the press conference who was against the cost cap was Franz Tost, Toro Rosso team principal. The team is, of course, owned by Red Bull (“Toro Rosso” in Italian literally means “Red Bull”), and therefore has less to worry about financially.

“For me the cost cap is dead,” Tost said. “Because the top teams don’t accept it. It’s also complicated for them and as long as auditors are not allowed to look into the books it’s useless to make a cost cap.”

Tost’s skepticism is disappointing given that the team he runs used to be Minardi – the legendary backmarker team in Formula 1 – who would have been jumping for joy at the prospect of a cost cap. However, his point is certainly a valid one. For the likes of Ferrari and Mercedes, it is very difficult to define where development differs between the road cars and the F1 projects.

It appears that the murmurs about a cost cap are set to continue, but a solution may be a long way off. The demise of FOTA and the formation of the F1 Strategy Group – essentially an exclusive club only for the big teams – has not aided matters.

Ferrari names Fiat Chrysler chief Marchionne as CEO

MONZA, ITALY - SEPTEMBER 06:  Fiat CEO Sergio Marchionne stands on the grid before the Formula One Grand Prix of Italy at Autodromo di Monza on September 6, 2015 in Monza, Italy.  (Photo by Dan Istitene/Getty Images)
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MILAN (AP) Sergio Marchionne took full control of super sports carmaker Ferrari NV, adding the CEO title on Monday to that of chairman as he positions the carmaker in the luxury goods space and seeks to regain Formula 1 glory.

Marchionne’s replacement of CEO Amedeo Felisa came as Ferrari posted its best first-quarter earnings ever, a 19-percent increase in net profit to 78 million euros ($89.5 million). That compares with 65 million euros in the same period last year.

“I remain as bullish on the prospects for this company as I was when I present Ferrari to the markets,” Marchionne, who is also CEO of mass-market carmaker Fiat Chrysler, told an analyst conference call. “We are just now beginning to define the true potential on the passenger car side of what this house can deliver.”

Marchionne engineered the luxury carmaker’s spin off from mass carmaker Fiat Chrysler, after longtime chairman Luca Cordero di Montezemolo stepped down over differences in strategy. He also launched public offerings in New York and Milan.

Marchionne renewed his pledge to enter the luxury goods space, beyond cars and more exclusive than the Ferrari-branded caps and watches already available, saying the first offerings would be available to the public in 2017, Ferrari’s 70th anniversary. He declined to be more specific.

Ferrari this quarter signed a non-binding memorandum of understanding to build a new Ferrari theme park in China, the location of which is still to be decided. It already operates a theme park in Abu Dhabi and has plans to open another in Barcelona.

Another key part of his brand strategy is getting the Ferrari Formula 1 racing team back into the winner’s circle. While Ferrari has placed in the top three in four races this year, it has yet to win.

“We have to correct his quickly,” Marchionne said.

The carmaker, based in the northern Italian city of Maranello, said shipments for the three months ending March 31 grew 15 percent to 1,882. Ferrari limits production to safeguard exclusivity, but Marchionne has said that numbers could nudge up to 9,000 units annually by 2019, with sales of 7,900 projected for this year.

Deliveries rose 24 percent in Europe, its strongest region, to 950 units and just 2 percent in the Americas to 523 units.

Revenues were up nearly 9 percent in the quarter to 675 million euros on sales of the newly launched 488 GTP and 488 Spider. The company also made more money on customizing cars, which Marchionne said was “the most financially rewarding part of the car market,” as well as sponsorships and selling branded goods, which it attributed to Ferrari’s improved Formula 1 performance in 2015 vs. 2014.

Debt dropped to 782 million from 797 million at the end of 2015.

Based on the results, Ferrari raised 2016 forecasts to net revenues around 3 billion euros, up from above 2.9 billion euros and net industrial debt at or below 730 million euros from below 750 million euros.

The 69-year-old Felisa, who is retiring after 26 years at Ferrari, will retain a seat on the board at Ferrari. He became Ferrari CEO in 2008 and formerly was head of product at Alfa Romeo.

Petrucci set for MotoGP return at Le Mans

PHILLIP ISLAND, AUSTRALIA - FEBRUARY 18: Danilo Petrucci of Italy and Octo Pramac Racing rounds the bend during the 2016 MotoGP Test Day at Phillip Island Grand Prix Circuit on February 18, 2016 in Phillip Island, Australia.  (Photo by Mirco Lazzari gp/Getty Images)
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Danilo Petrucci will make his comeback from injury at this weekend’s MotoGP race in Le Mans after missing the first four races of the season.

Petrucci underwent surgery on his right hand due to a recurring problem that meant he could not race in Qatar, Argentina, Austin or Spain for the Pramac team.

The Italian’s place was taken by Michele Pirro for the last three races, but Petrucci is now fit again and will race at the Circuit de la Sarthe this weekend.

“I trained a lot in the last few weeks. This time I did things more calmly, waiting for my body to give me permission to train,” Petrucci said.

“I’m happy to be back and I feel good. Of course we must see the reaction to the first impact with the track as the intense workout made at home certainly cannot be compared to a race weekend. But I’m very confident.

“I want to thank all the people who helped me, my trainer Marco Baglioni, Tommaso, Filippo, and my brother Francesco who have trained with me, pushing me every day.

“I also want to thank the Medical Team of Terni who provided me with all the tools for physiotherapy and Dr. Tarallo, from the team of prof. Catani, who operated me.

“Then a big thank to all my fans for their support. I can’t wait to be at Le Mans and I hope I can soon give to all of them so much satisfaction.”

The French Grand Prix takes place on Sunday May 8.

Magnussen named Driver of the Day for Russian GP

SOCHI, RUSSIA - MAY 01: Kevin Magnussen of Denmark driving the (20) Renault Sport Formula One Team Renault RS16 Renault RE16 turbo on track during the Formula One Grand Prix of Russia at Sochi Autodrom on May 1, 2016 in Sochi, Russia.  (Photo by Clive Mason/Getty Images)
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Kevin Magnussen has won Formula 1’s official Driver of the Day poll for the Russian Grand Prix.

Magnussen started 17th in Sochi after a difficult qualifying session, but made the most of the trouble at the first corner for many of the cars ahead to work his way into the top 10.

The Dane’s pace was impressive during the second half of the race to ensure he finished the race seventh, marking Renault’s first points as an F1 constructor since the 2010 Abu Dhabi Grand Prix.

The result was also Magnussen’s first top 10 finish in F1 since the penultimate race of the 2014 season when he raced for McLaren.

On Monday, the official F1 Twitter account confirmed that Magnussen had won the vote through its website.

Kvyat, Gutierrez, Sainz handed penalty points after Russian GP

SOCHI, RUSSIA - MAY 01: Esteban Gutierrez of Mexico driving the (21) Haas F1 Team Haas-Ferrari VF-16 Ferrari 059/5 turbo and Nico Hulkenberg of Germany driving the (27) Sahara Force India F1 Team VJM09 Mercedes PU106C Hybrid turbo collide at the start during the Formula One Grand Prix of Russia at Sochi Autodrom on May 1, 2016 in Sochi, Russia.  (Photo by Clive Mason/Getty Images)
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The Russian Grand Prix proved to be a busy race for the FIA stewards as a number of incidents resulted in three drivers receiving penalty points on their super licences.

Daniil Kvyat, Esteban Gutierrez and Carlos Sainz Jr. were all sanctioned by the stewards for actions during the race.

Kvyat’s antics on the first lap defined a number of drivers’ races as he hit Sebastian Vettel twice in a matter of seconds, the second hit punting the Ferrari racer into the wall and out of contention.

Kvyat said after the race that it was easy to attack him, but the rest of the paddock was less than impressed, leaving many expecting an apology from the Russian.

After being handed a 10-second stop/go penalty during the race, Kvyat was also given three points on his FIA super licence, taking his tally up to five for the 12-month period.

Gutierrez was also penalized for an incident on the first lap after he took out Nico Hulkenberg and sparked a multi-car melee at Turn 2. He too received a time penalty during the race, but was handed two penalty points afterwards by the stewards.

Finally, Sainz was found to have forced Jolyon Palmer off track between Turns 2 and 3 during the race. He had 10 seconds added to his race time and also received two penalty points.