I fear, gentlemen, that this is the end. Max Mosley sent a letter to the teams this morning, outlining a spec-engine by Cosworth, with transmissions by Ricardo and Xtrac (who already supply half the grid):
Mosley's letter
Further to my letter of 18 November, we have completed the tendering process and are now in exclusive negotiations with Cosworth together with Xtrac and Ricardo Transmissions (XR) to supply a complete Formula One power train starting in 2010. The engine will be a current Formula One engine while the transmission will be state-of-the-art Formula One and a joint effort by two companies which already supply transmissions to most of the grid.
The cost to each team taking up this option will be an up-front payment of £1.68m (1.97m euros) and then £5.49m (6.42m euros) per season for each of the three years of the supply contract (2010, 2011, 2012). This price is based on four teams signing up and includes full technical support at all
races and official tests, plus 30,000 km of testing. The annual cost will reduce if more teams take up the option, for example to £4.99m (5.84m euros) per team with eight teams. It will further reduce if less than 30,000 km of testing is required. Neither engine nor transmission will be badged.
As suggested in my letter of 18 November, teams participating in the 2010 Championship would then have three options:
1) The above
2) The right to build an engine themselves, identical to the above, having been supplied with all the necessary technical information
3) The right to continue to use their existing engine, with the current ban on development and requirement for engine parity still in place (noting that the engine supplied will become the reference engine for output and other performance indicators and no engine will be permitted to exceed those indicators)
Teams opting for one of the latter two options would nevertheless use the XR transmission.
In combination with the programme of cost reductions for the chassis, race weekend and team home base outlined in my letter of 18 November, these arrangements have a number of advantages. These include:
1) Enabling the independent teams to survive in the current difficult economic climate
2) Facilitating the replacement of a manufacturer team if (as seems likely) we suffer additional losses
3) Stabilising Formula One while new road-relevant technologies are introduced together with a state-of-the-art high tech engine, which could be in Formula One as early as 2013 should the car industry by then be in a position to fund its development
4) Avoiding any change to the Formula One spectacle and keeping the technology at current levels
These arrangements are on the basis that at least four teams enter into contracts to use the power train described above, and do so no later than close of business (5pm CET) on Thursday 11 December 2008. In the event of fewer than four teams signing up, the FIA may still proceed but the price on offer will vary. The supply contracts will be with Cosworth but in the first instance teams are requested to make their intentions known to my office.
Yours sincerely
Max Mosley
This is very much an end to F1 as we know it. With Honda pulling out, Toyota might follow up (or at least cut their gigabillion dollar spendings), while Renault's ever-watchful Ghosn might pull them out, as well. On the other hand, Honda were never, historically, a committed team: Their '60s project was dropped early, and they pulled out of engine-making in '92 because their engines weren't the best anymore. They drove themselves into the ground with their EarthDream campaign, and had to support the full expenses almost on their own. I want them to stay, if only for Rubens and Button, but they dug their own pit there.
Every problem has it's roots: In this case, the root of all evil is McLaren-Mercedes. Note the Mercedes bit, because that's the important one. Up until 1994, most of the teams' budgets were FOM money, and some minor sponsoring, and success was largely dependent on a solid, reliable design and a talented team - and some money from last year's success. When Mercedes ditched Sauber for McLaren, though, things changed. The manufacturer started pouring unimaginable (at the time) amounts of money into the team and the engine, and the other manufacturers started matching them: Soon, Renault and Ferrari upped their budgets, allowing the latter to set up it's "dream team" that would dominate F1 for several years. Things became dirty when Honda, for no good reason, ditched the superbly-managed and highly talented Jordan crew, and started supplying backmarkers BAR with their works engine. Jordan quickly fell behind, out-spent massively by the manufacturer teams. The end of the garagistas started in the '90s, but the end of the independent teams started in 2000.
Wait, wtf? Out of nowhere!
Not quite. I reported yesterday that they've been firing employees (they termed it "voluntary vacancies"), and for a week or so things were looking shaky - but a full-out retreat wasn't expected.
I know everyone's going to be annoyed by a potentially smaller grid, but Honda are gaining virtually nothing now from their F1 campaign.
^ Post of win #1
David Richards your thread has arrived.
^ Post of win #2
Aside from the Honda employees who stand to lose their jobs, the thing I am most concerned about is Rubens Barrichello. His F1 days may well be over unless another team pops up before much longer. Jenson Button, too, must be wondering what will happen, but atleast he is still only 28... it would be a real shame for Rubens to go out of F1 in this way...
Yep. He and Sato definitely deserve to retire with grace. So many years under Schumacher, the last two seasons in the second/third-worst car on the grid - not what Barrichello deserves.
Not all is lost, however, for Honda have reportedly found 3 prospective buyers since the announcement - within 12 hours, that is!