Is Ferrari really going to start its own racing series?
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Is Ferrari really going to start its own racing series?

Iconic luxury supercar giant Ferrari made headlines recently when it threatened to quit the F1 – a racing series that is synonymous with Ferrari’s brand. The root of the problem comes as the F1’s new owners plan to make a number of changes, including the introduction of louder, cheaper, engines – something that is antithetical to everything Ferrari stands for. To get to that point, the F1’s new owners will introduce new regulations, which mandate “simplifying components and having stricter design parameters, keeping teams from getting too extreme or certain teams from getting too far ahead.

Ferrari’s share price has risen by 82% so far this year

graph 1222 ferrari

SOURCE: Yahoo Finance

For Ferrari, one of the biggest spenders in the F1, and one of its most successful teams, this isn’t great news. The company’s ability to make huge financial commitments to its vehicles gives it an edge – it is also, of course, entirely on brand for a company whose products have an entry point of around $200,000. As a result, Ferrari boss Sergio Marchionne has claimed that the F1 could become “unrecognizable” and that Ferrari didn’t want “to play NASCAR globally.” Most recently of all, he has even speculated that Ferrari could start its own series.

According to Motorsport.com, he said:

The previous contract [between teams and F1] made it impossible for the team to evaluate an alternative outside of the circus. Now we can analyse the possibility to create something similar to Formula 1 in terms of a show. “There is the possibility to create an alternative championship from 2020/2021,” he said. “We can’t ignore this possibility, but I prefer avoid it if we can. I would like to continue with Formula 1, but we have to find compromises that don’t leave Ferrari without the possibility of showing its DNA in every race. ...

Could this be the end of an era for motorsport and Ferrari?

Disclosure

Dominion holds Ferrari in its Global Trends Luxury Fund.


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