THE KOREAN GP is finally here – however, just in case you missed the news, the Grand Prix which will be held in Yeongam, South Korea was confirmed only 13 days before Race Day! Now will that be an unlucky 13 for Formula1? Only Sunday will tell!
And since we have our attention on numerology, here’s a bit of numbers that will define Sunday’s Korean Grand Prix. The 5.6km long circuit boasts of 18 corners and should pose an interesting challenge for car setup considering that Sector 1 is made up of straights and Sectors 2 and 3 are all of twists and turns. My guess would be a medium to low downforce specification. The Red Bulls and Ferraris should dominate proceedings and the Mclaren’s will rely heavily on the f-duct to help them gain some speed advantage.
Keeping the on-track action aside, there’s been much action in Formula1 off-track too. Between the Japanese Grand Prix and now, the commercial rights holder Bernie Ecclestone announced the signing and arrival of the Russian Grand Prix for the 2014 season.
The signing was done by Russian Prime Minister Vladmir Putin and the race would be held in the Black Sea resort city of Sochi. Bernie’s been plotting F1’s entry in Russia for nearly 2 decades and after many futile attempts F1 will finally set foot in Russia.
Russia’s entry in Formula1 is a strong indicator of Bernie’s sense of direction. I remember attending lectures and sessions where marketing gurus proclaimed that the B-R-I-C (Brazil-Russia-India-China) countries would be the next big influencers in the global economy. For Bernie too, Formula1 is pure business and he’s been chasing entry in the BRIC countries too.
Brazil is a mature market for Formula1 and China has been hosting the Chinese Grand Prix since 2004. India is slated to host the Indian Grand Prix in 2011 and with Russia now confirmed for 2014; F1’s stock value is surely on its way up!
While F1 is moving to newer territories, its major markets have always been the European nations and Ecclestone’s had to play the balancing act. The Asian races are not always broadcast at viewer friendly times in Europe causing a loss of millions in TV viewing audiences. As a result, the Asian races are held later in the day to appeal to European TV times. In fact, the night race at the Singapore GP, while it adds to the spectacle, is perfectly timed for European TV audiences. (Since we are at the Korean GP – Bernie’s request to turn the Korean GP into a night race was turned down by the organizers. Their justification was lack of experience in running motorsport events!)
The balancing act hasn’t always worked in Ecclestone’s favour though. Last year’s Malaysian Grand Prix was a complete wash-out due to torrential rain. Many blamed the scheduling (the race was held in the evening) as a reason, but I think there’s a good learning in Ecclestone’s moves as he charts F1’s entry into Asia.
The other important movement in F1 has been the rumour of Porsche and Honda returning back as manufacturer teams. Porsche, one of the most iconic automotive brands in the world, tasted tremendous success in Formula1 during its turbo-charged era (late 60s, 70s and 80s). However, their last season as an engine supplier in F1 was way back in 1991 during which they not only failed to score a single championship point but also failed to qualify for over half the races that year. Honda aborted its quest for F1 success after the 2008 season. However, the reasons for both manufacturers to quit were the same – high operating costs and of course very little transfer of technology from F1 cars to road cars.
So one might wonder what has prompted their comeback? First, the 2013 engine regulations indicate a return of 1.6 litre turbocharged engines in Formula1. This regulation change will aid transfer of technology to road cars – after all how many road cars run on a naturally aspirated 2.4 litre V8 engine?
Second, the negotiation of the Concorde Agreement (it is an agreement between the FIA, Formula One Teams Association and Formula One Management and defines terms of competition and revenue for all competing teams) in the winter of the 2010 season. The negotiations will revolve around increasing the team’s share of revenues from 50% to 75% while keeping costs in control. This could then make owning and operating an F1 team cost neutral or even profitable.
Both manufacturers have three ways to plot their return. First is to be a plain engine supplier with an existing team. Second would be a shareholder with a team a la Mclaren and Mercedes. Third would be to acquire an existing team and enter as a factory team. Formula1 has lost 3 manufacturers (BMW, Honda, and Toyota) in the last 2 seasons and it was purely down to financials. It is up to Bernie now to bring the manufacturers back to the sport by making it more cost effective. Talking of which do I see an Indian car manufacturer join the ranks of its global competitors on the grid? Well maybe not immediately, but I will be surprised if we don’t see one in the next 10 years – Mr. Tata are you listening?
