About the F1 Resource Restriction Agreement

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WhiteBlue
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Re: Lola reveal 2011 resource cap

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It appears that Ferrari are serious at reducing resources. :wink:
Stefano Domenicali wrote:Anyone who does not believe that we can win the world championship would do better looking for another job.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

myurr
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Re: Lola reveal 2011 resource cap

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WhiteBlue wrote:It appears that Ferrari are serious at reducing resources. :wink:
Stefano Domenicali wrote:Anyone who does not believe that we can win the world championship would do better looking for another job.
Didn't get that joke until I read your previous post... but it's quite funny now ;)

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WhiteBlue
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Re: Lola reveal 2011 resource cap

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http://www.auto-motor-und-sport.de/form ... 722803.htm

AMuS give some detail about the resource restriction agreement (RRA):
  • Head count cap on 31.12.2010 maximum 350 for design, manufacture and operation of the race cars
  • Head count cap on 31.12.2011 maximum 280 for design, manufacture and operation of the race cars
  • Budget for bought in parts or engineering contractors €40m in 2010
  • Budget for bought in parts or engineering contractors €20m in 2011
  • customer engine sales price limited to €9m, eight engines per season
  • wind tunnel hours 60/week, CFD restrictions in place


The restrictions for December are are not enforced by Ferrari yet. They will comply very late and switch many resources from the gestione sportiva to the road car and engine departments. With currently 900 employees they have to cut back to a third. Domenicali commented:
Domenicali wrote:Früher haben wir rein ergebnisorientiert gearbeitet. Der Zweck heiligte die Mittel. Jetzt müssen wir mit weniger Leuten, weniger Werkzeugen, weniger Geldeinsatz auskommen. Wir müssen das Ergebnis gegen die Kosten abwägen, müssen Prioritäten setzen. Das verlangt von uns eine völlig neue Denkweise, eine andere Kultur. Die Qualität deiner Mitarbeiter wird immer wichtiger. Die Aerodynamik spielt in der Formel 1 eine zu dominante Rolle. Viele Dinge sind für die Autoindustrie überhaupt nicht relevant. Dafür verkümmern bei uns die mechanischen Entwicklungen. Zurzeit nimmt die Aerodynamik 80 Prozent der Entwicklungsarbeit im Vergleich zur Mechanik ein. Wir müssen das Verhältnis auf 50 zu 50 bringen.

In the past we have worked completely target oriented. Money was no issue. Now we have to get by with fewer people, less tools and less money. We must balance the result against the costs, we have to set priorities. This requires an entirely new way of thinking from us, another culture. The quality of your employees becomes ever more important. Aerodynamics is much too dominating in F1. Many things are irrelevant for the automotive industry. On the other hand our mechanical developments are wasting away. Today aero takes 80% of developments compared to mechanical. We need to bring that ratio back to 50:50.
Small teams like Toro Rosso are very positive. Franz Tost thinks that with total RRA in place it will be possible to run a team with the same competitiveness on €50m that cost €200m before RRA. Both team principals believe that the fluctuation of engineers between teams will keep the competitors honest. Nobody can afford to cheat because it will get out and they have signed a legally binding agreement.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

wesley123
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Re: Lola reveal 2011 resource cap

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Ridiculous, F1 is worse enough with all those rules.

I dont get the point of all of this, we have 60 years of F1 right now and in that time no one cared about big teams vs. small teams, same for cost cutting, why does it need to happen right now?
"Bite my shiny metal ass" - Bender

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WhiteBlue
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Re: Lola reveal 2011 resource cap

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Because without those restrictions F1 would have gone bust by now and there would be only three or four teams competing. The list of teams witch are significantly spending less this year is:

McLaren
Mercedes GP
Renault
Williams
Sauber
Toro Rosso
Force India

Each of them would be bust if they were forced to spend on a level of 2008 before the cost brakes got pulled. Effectively only Ferrari can afford to keep up the budgets they used to have. So it makes sense to get them under the cost cap as well to create a more equal playing field. One of the reasons they got more money than any other team is the 2008 CA they signed with Bernie in 2005. They were bribed with more money than other teams and political influence guarantees. How level is the playing field after such a stunt? Ferrari also pull in a large amount of illegal tobacco sponsorship. Should they be allowed to profit from such cheats?

Most teams run on significantly reduced budgets now and all teams will from next year on. Ferrari will still carry an advantage into 2011 though as their 2011 car isn't designed and build with the same resources as Mercedes GP's.
Last edited by WhiteBlue on 27 Aug 2010, 02:00, edited 2 times in total.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

Scotracer
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Re: Lola reveal 2011 resource cap

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wesley123 wrote:Ridiculous, F1 is worse enough with all those rules.

I dont get the point of all of this, we have 60 years of F1 right now and in that time no one cared about big teams vs. small teams, same for cost cutting, why does it need to happen right now?
Because F1 is more expensive than its ever been.
Powertrain Cooling Engineer

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WhiteBlue
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Re: Lola reveal 2011 resource cap

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http://www.autosport.com/news/report.php/id/87047
Autosport wrote:Formula 1 teams have made a major breakthrough to help reduce costs in the sport over the next few years after rubber-stamping a new Resource Restriction Agreement (RRA) in Singapore at the weekend, AUTOSPORT has learned. Teams had headed to Singapore fearing that the current RRA, which ran from last year until the end of next season, was on the brink of falling apart - amid suspicion that some outfits had found clever ways of getting around the agreed cost restraints. On Sunday a provisional agreement was reached for a lengthy extension that will now run until the end of 2017.
This is positive news as we see an effort by F1 to implement cost control through the next 2013-2017 Concord period. It is an important pre requisite to unity and to maintain the power of FOTA to set technical and sporting regulations.

Unfortunately we have little information on the agreed content and so the guess work and detective effort starts once again. I just hope that the head count objectives for 2011 have not been diluted. It would be hard to see Ferrari getting away with another big gamble again.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

Pup
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Re: Lola reveal 2011 resource cap

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And to think that it all happened without a single press release from the FIA president. :wink:

alleyoop
alleyoop
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Re: Lola reveal 2011 resource cap

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I'm curious if this should go under the budget for engineering contractors of 2010 or 2011:

"We have a pretty powerful tyre group and we are working closely with Daimler and Daimler experts in how we can improve that side," RB talking about next year tyres.
link: http://www.autosport.com/news/report.php/id/86846

I'm quite sceptical at how this kind of things can be effectively controlled, what do you think?

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WhiteBlue
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Re: About the F1 Resource Restriction Agreement

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They have a budget of €40m for those things. We should not be worried that one or two tyre specialists from Daimler group would not be covered by this kind of consultancy.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

alleyoop
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Re: About the F1 Resource Restriction Agreement

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Of course the tyre consultancy was only an example, and this is true for every team owned by one of the industrial giants. It's almost impossible to control

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WhiteBlue
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Re: About the F1 Resource Restriction Agreement

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http://paddocktalk.com/news/html/story-145885.html
Italy's Autosprint reports that a new operational budget limit was therefore agreed within the FOTA group, with engine and transmission costs not included.

The report said teams may no longer spend any more than EUR 20 million each on operational elements, while team staff numbers have been capped at 415.
THis would confirm my suspicion that the head count cap was diluted. It used to be 350 for 2011 and 280 for 2012. If they increased it to 415 the job has become more difficult again for the small teams.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)

Pingguest
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Re: About the F1 Resource Restriction Agreement

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alleyoop wrote:Of course the tyre consultancy was only an example, and this is true for every team owned by one of the industrial giants. It's almost impossible to control
A good point though. I'm wondering how the RRA is enforced.

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747heavy
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Joined: 06 Jul 2010, 21:45

Re: About the F1 Resource Restriction Agreement

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so does I read this correct then?
It means Ferrari, Mercedes, Renault and McLaren if they decide to do their on engines, could still employ 500+ people on engine and drivetrain (including KERS) development, with and "unlimited" budget?
Would be interesting to know what falls under "operational" budget.
If you take 20 M€ and have the full 415 headcount on your payroll, there is not much left over after wages, unless F1 people are gross underpaid compare to other motorsport disciplines.
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look what they can do to a carburetor in just a few moments of stupidity with a screwdriver."
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WhiteBlue
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Re: About the F1 Resource Restriction Agreement

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The €20m is obviously the external budget for parts and services not generated by the own resources. This was already planned for 2011 with the same budget.
Formula One's fundamental ethos is about success coming to those with the most ingenious engineering and best .............................. organization, not to those with the biggest budget. (Dave Richards)