How does cost cap take account of accident costs?

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Xwang
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How does cost cap take account of accident costs?

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How does cost cap take account of accident costs?
Williams and Mercedes have to rebuild their cars buildings new parts for them.
Are these expenses part of the cost cap?

Jolle
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Re: How does cost cap take account of accident costs?

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Yes they are.

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El Scorchio
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Re: How does cost cap take account of accident costs?

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Jolle wrote:
18 Apr 2021, 23:18
Yes they are.
Very interesting, that. I'd have thought manufacture of like for like replacement parts should be exempt.
Now we know why Haas moved on from both Grosjean and Magnussen....

Jolle
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Re: How does cost cap take account of accident costs?

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El Scorchio wrote:
18 Apr 2021, 23:23
Jolle wrote:
18 Apr 2021, 23:18
Yes they are.
Very interesting, that. I'd have thought manufacture of like for like replacement parts should be exempt.
Now we know why Haas moved on from both Grosjean and Magnussen....
It’s more a problem for the teams on the edge of the cap, Mercedes, Redbull, Ferrari and Renault. Their normal operation is just below the norm, extra spending would push them beyond. HAAS has more of a cashflow problem after big shunts.

Hoffman900
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Re: How does cost cap take account of accident costs?

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The frustrating part is that it penalizes the teams that are usually more midpack. While today's incident involved Mercedes, odds are cars in the midfield will be around other cars more often, and the risk is higher.

Jolle
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Re: How does cost cap take account of accident costs?

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Hoffman900 wrote:
18 Apr 2021, 23:41
The frustrating part is that it penalizes the teams that are usually more midpack. While today's incident involved Mercedes, odds are cars in the midfield will be around other cars more often, and the risk is higher.
But those teams are not brushing against the cost cap now. Damage is and still will be expensive. For the top teams it’s pulling ressources from somewhere else, for teams not yet on the cost cap it’s not enough budget.

Hoffman900
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Re: How does cost cap take account of accident costs?

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Jolle wrote:
18 Apr 2021, 23:48
Hoffman900 wrote:
18 Apr 2021, 23:41
The frustrating part is that it penalizes the teams that are usually more midpack. While today's incident involved Mercedes, odds are cars in the midfield will be around other cars more often, and the risk is higher.
But those teams are not brushing against the cost cap now. Damage is and still will be expensive. For the top teams it’s pulling ressources from somewhere else, for teams not yet on the cost cap it’s not enough budget.
It's a gamble. A few write offs a year, and you'll be near it. If that's the case, might have just been better to spend the money and be a little more up front.

Jolle
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Re: How does cost cap take account of accident costs?

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Hoffman900 wrote:
18 Apr 2021, 23:51
Jolle wrote:
18 Apr 2021, 23:48
Hoffman900 wrote:
18 Apr 2021, 23:41
The frustrating part is that it penalizes the teams that are usually more midpack. While today's incident involved Mercedes, odds are cars in the midfield will be around other cars more often, and the risk is higher.
But those teams are not brushing against the cost cap now. Damage is and still will be expensive. For the top teams it’s pulling ressources from somewhere else, for teams not yet on the cost cap it’s not enough budget.
It's a gamble. A few write offs a year, and you'll be near it. If that's the case, might have just been better to spend the money and be a little more up front.
It’s also playing a bit more the victim as Toto did. It’s not that they hire extra personal to replenish their stock of spares or that the raw material costs millions. More likely that a chassis change has to be pulled forward and possibly that chassis has to do some extra races.
For HAAS there are actual costs involved with the every bump, they have to buy new parts from Dalara

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DiogoBrand
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Re: How does cost cap take account of accident costs?

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Is Haas gonna have any money left for development after covering all the crashes from Mazepin?

holeindalip
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Re: How does cost cap take account of accident costs?

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DiogoBrand wrote:
19 Apr 2021, 00:01
Is Haas gonna have any money left for development after covering all the crashes from Mazepin?
It’s probably a non issue for haas for development this year as they haven’t spent much just enough for the new rule changes and will be fully focused on ‘22....

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nzjrs
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Re: How does cost cap take account of accident costs?

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I think people wildly overestimate the cost of accidents. Given that the workforce would be 100% utilised whether a crash or not (and thus paid) the delta on a crash is the materials cost. I think in the media the also report big numbers which include the labour.

Or that's my intuition anyway. Perhaps some insiders can clarify?

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adrianjordan
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Re: How does cost cap take account of accident costs?

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So the way Russell gets back into Toto's good books is to take out a Red Bull enough times that they can't afford to develop their car?? 🤔🤔
Favourite driver: Lando Norris
Favourite team: McLaren

Turned down the chance to meet Vettel at Silverstone in 2007. He was a test driver at the time and I didn't think it was worth queuing!! 🤦🏻‍♂️


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El Scorchio
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Re: How does cost cap take account of accident costs?

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So essentially if a Haas, for example, wipes out Verstappen and completely wrecks his chassis through no fault of his own, then Red Bull are heavily financially penalised. That seems very unfair.

I'm sure Wolff is just making a bit of a meal of it to prove a point about the budget cap, and the actual impact will be negligible, but this does seem a bit ill thought out as a rule.

DChemTech
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Re: How does cost cap take account of accident costs?

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El Scorchio wrote:
19 Apr 2021, 14:35
So essentially if a Haas, for example, wipes out Verstappen and completely wrecks his chassis through no fault of his own, then Red Bull are heavily financially penalised. That seems very unfair.

I'm sure Wolff is just making a bit of a meal of it to prove a point about the budget cap, and the actual impact will be negligible, but this does seem a bit ill thought out as a rule.
Ideally you would want that teams can always make new parts, provided they are identical to the previous iteration, without the cap. But yeah, the world is not ideal in that sense. I don't really see an easy way out.