Fiat plans to merge with Renault

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lio007
316
Joined: 28 Jan 2013, 23:03
Location: Austria

Fiat plans to merge with Renault

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https://www.bbc.com/news/business-48420334

If it's going to happen, do we think both teams, Ferrari and Renault, may be affected in one or the other way?

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Scorpaguy
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Joined: 04 Mar 2010, 05:05

Re: Fiat plans to merge with Renault

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I posted this in another thread:

"As we see more heads than hearts begin making these decisions, this merger could really shake things up. Ferrari spends the most cash but continually posts 3rd/4th (or worse results). Renault's results are also not commensurate with their spending. With Merc's tech/engineering excellence continuing to dominate, I can foresee LARGE teams leaving as constructors to save face...retaining a minor presence in the sport as Aston Martin does with RB."

I think WEC's hyper car reg's could play a role as well. Ferrari may be tiring of spending large and just getting embarrassed. Since their woes are not cash related...and they seem unable to field a winning team (certain team calls being absolutely amateurish this year), switching to a more road car relevant series may be a good move for them. IMHO, i cannot see the Big Red continuing their farcical attempts at F1 glory...good grief, Bino's boys keeping Leclerc in the pits in Quali 1 was a mistake no other team would have made.

I can see Alfa getting a bit more cash...Ferrari branded engines...and Big Red leaving. Such a move would keep Renault in.

Jolle
Jolle
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Joined: 29 Jan 2014, 22:58
Location: Dordrecht

Re: Fiat plans to merge with Renault

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Scorpaguy wrote:
27 May 2019, 23:03
I posted this in another thread:

"As we see more heads than hearts begin making these decisions, this merger could really shake things up. Ferrari spends the most cash but continually posts 3rd/4th (or worse results). Renault's results are also not commensurate with their spending. With Merc's tech/engineering excellence continuing to dominate, I can foresee LARGE teams leaving as constructors to save face...retaining a minor presence in the sport as Aston Martin does with RB."

I think WEC's hyper car reg's could play a role as well. Ferrari may be tiring of spending large and just getting embarrassed. Since their woes are not cash related...and they seem unable to field a winning team (certain team calls being absolutely amateurish this year), switching to a more road car relevant series may be a good move for them. IMHO, i cannot see the Big Red continuing their farcical attempts at F1 glory...good grief, Bino's boys keeping Leclerc in the pits in Quali 1 was a mistake no other team would have made.

I can see Alfa getting a bit more cash...Ferrari branded engines...and Big Red leaving. Such a move would keep Renault in.
It's a bit less simple as you state it here. Renault is the big spender in the manufacturers circle, together with Honda. Ferrari is funded by the FIA/FOM and Philip Morris. The F1 program doesn't cost FIAT too much. Mercedes is getting a lot of funding from Petronas (and the FIA/FOM of course)

As for rules and racing WEC is a nice series but not so much for marketing. Formula E is a better option for the manufactures. It's cheap, lots of attention on TV and social media and events where their customers live (city centers).

If Renault and Exor merge and Philip Morris extents its contract with Ferrari (it's ending in 2020 I believe), Ferrari will stay but Renault may become the green brand, with an all-in on Formula E. And then we will be back again to three engine manufacturers. Not the biggest problem, except for McLaren (Enstone could go with Honda or Mercedes without trouble).

Bigger problem is if Philip Morris would call it quits or decides to go another route, as they are funding Ferrari since 1996.

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Scorpaguy
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Joined: 04 Mar 2010, 05:05

Re: Fiat plans to merge with Renault

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Jolle wrote:
27 May 2019, 23:30
Scorpaguy wrote:
27 May 2019, 23:03
I posted this in another thread:

"As we see more heads than hearts begin making these decisions, this merger could really shake things up. Ferrari spends the most cash but continually posts 3rd/4th (or worse results). Renault's results are also not commensurate with their spending. With Merc's tech/engineering excellence continuing to dominate, I can foresee LARGE teams leaving as constructors to save face...retaining a minor presence in the sport as Aston Martin does with RB."

I think WEC's hyper car reg's could play a role as well. Ferrari may be tiring of spending large and just getting embarrassed. Since their woes are not cash related...and they seem unable to field a winning team (certain team calls being absolutely amateurish this year), switching to a more road car relevant series may be a good move for them. IMHO, i cannot see the Big Red continuing their farcical attempts at F1 glory...good grief, Bino's boys keeping Leclerc in the pits in Quali 1 was a mistake no other team would have made.

I can see Alfa getting a bit more cash...Ferrari branded engines...and Big Red leaving. Such a move would keep Renault in.
It's a bit less simple as you state it here. Renault is the big spender in the manufacturers circle, together with Honda. Ferrari is funded by the FIA/FOM and Philip Morris. The F1 program doesn't cost FIAT too much. Mercedes is getting a lot of funding from Petronas (and the FIA/FOM of course)

As for rules and racing WEC is a nice series but not so much for marketing. Formula E is a better option for the manufactures. It's cheap, lots of attention on TV and social media and events where their customers live (city centers).

If Renault and Exor merge and Philip Morris extents its contract with Ferrari (it's ending in 2020 I believe), Ferrari will stay but Renault may become the green brand, with an all-in on Formula E. And then we will be back again to three engine manufacturers. Not the biggest problem, except for McLaren (Enstone could go with Honda or Mercedes without trouble).

Bigger problem is if Philip Morris would call it quits or decides to go another route, as they are funding Ferrari since 1996.
I certainly agree with your statements on how each brands funding is diversified. However, Renault just quit FE to concentrate on F1...I cannot fathom why they would about face. They are a big Company and can spend such.

On the other hand, Ferrari are small, cannot afford such...if their cash cows grow weary of their antics and "heads begin over ruling hearts", Ferrari have to quit as they cannot compete now with 110-120% of Merc funding.

Yes, WEC is small, but more relatable to their road cars and Porsche is surviving well with minimal top tier racing exposure.

Hmmmm, maybe we should all start smoking...if not, here come those dreaded Ferrari SUV's.

Jolle
Jolle
133
Joined: 29 Jan 2014, 22:58
Location: Dordrecht

Re: Fiat plans to merge with Renault

Post

Scorpaguy wrote:
28 May 2019, 00:05
Jolle wrote:
27 May 2019, 23:30
Scorpaguy wrote:
27 May 2019, 23:03
I posted this in another thread:

"As we see more heads than hearts begin making these decisions, this merger could really shake things up. Ferrari spends the most cash but continually posts 3rd/4th (or worse results). Renault's results are also not commensurate with their spending. With Merc's tech/engineering excellence continuing to dominate, I can foresee LARGE teams leaving as constructors to save face...retaining a minor presence in the sport as Aston Martin does with RB."

I think WEC's hyper car reg's could play a role as well. Ferrari may be tiring of spending large and just getting embarrassed. Since their woes are not cash related...and they seem unable to field a winning team (certain team calls being absolutely amateurish this year), switching to a more road car relevant series may be a good move for them. IMHO, i cannot see the Big Red continuing their farcical attempts at F1 glory...good grief, Bino's boys keeping Leclerc in the pits in Quali 1 was a mistake no other team would have made.

I can see Alfa getting a bit more cash...Ferrari branded engines...and Big Red leaving. Such a move would keep Renault in.
It's a bit less simple as you state it here. Renault is the big spender in the manufacturers circle, together with Honda. Ferrari is funded by the FIA/FOM and Philip Morris. The F1 program doesn't cost FIAT too much. Mercedes is getting a lot of funding from Petronas (and the FIA/FOM of course)

As for rules and racing WEC is a nice series but not so much for marketing. Formula E is a better option for the manufactures. It's cheap, lots of attention on TV and social media and events where their customers live (city centers).

If Renault and Exor merge and Philip Morris extents its contract with Ferrari (it's ending in 2020 I believe), Ferrari will stay but Renault may become the green brand, with an all-in on Formula E. And then we will be back again to three engine manufacturers. Not the biggest problem, except for McLaren (Enstone could go with Honda or Mercedes without trouble).

Bigger problem is if Philip Morris would call it quits or decides to go another route, as they are funding Ferrari since 1996.
I certainly agree with your statements on how each brands funding is diversified. However, Renault just quit FE to concentrate on F1...I cannot fathom why they would about face. They are a big Company and can spend such.

On the other hand, Ferrari are small, cannot afford such...if their cash cows grow weary of their antics and "heads begin over ruling hearts", Ferrari have to quit as they cannot compete now with 110-120% of Merc funding.

Yes, WEC is small, but more relatable to their road cars and Porsche is surviving well with minimal top tier racing exposure.

Hmmmm, maybe we should all start smoking...if not, here come those dreaded Ferrari SUV's.
I think CFA is spending more money on Sauber this year then on Ferrari.

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Zynerji
110
Joined: 27 Jan 2016, 16:14

Re: Fiat plans to merge with Renault

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It will aim to save €5bn a year by sharing development costs on technology such as electric vehicles and self-driving cars.
This is exactly what I keep proposing for F1. These types of cost savings are the fastest way to drop the cost of participation in this sport.

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loner
16
Joined: 26 Feb 2016, 18:34

Re: Fiat plans to merge with Renault

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Fiat Chrysler says it has withdrawn an offer to merge with French automaker Renault.
https://apnews.com/b5b55685d2a845288d7b ... _medium=AP
para bellum.