Formula 1 tends to pay little attention to the machinations of the automotive industry, particularly after 2009 when manufacturer involvement in the sport took a plunge with the departures of Toyota, Honda and BMW and a scaling back of Renault’s activities. The current state of affairs is a little precarious, particularly in the midfield. At the moment the sport boasts involvement from Mercedes and the Fiat-Chrysler empire (through Ferrari), with Renault supplying engines. Beyond that there are only automotive tiddlers like Lotus, Caterham and Marussia, who are keen to use the sport to grow their empires. The new F1 rules for 2014 are designed to lure in more manufacturers but their desire to be involved is not just based on what the sport can offer them, but also on the state of the markets. At the moment the giant international corporations are pushing into the new markets, while also trying to cope with overproduction and weak demand in their traditional homelands. Motorsport is still sexy to car buyers but F1 is not high on the agenda until the big players have developed sufficient regional infrastructures, after which they may turn to the sport to help them win over new customers. Similarly, in Europe the primary need at the moment is to reduce production, so that the number of cars available is closer to the number of cars needed, at which point the companies can then start to battle over market share, rather than be plagued by having too many factories, too many workers and too many cars.
It is, therefore, interesting to see the latest moves between Peugeot and General Motors, who are expected to announce in the next few days that they have created an alliance in which the US giant will buy seven percent of the French company. The aim for both companies is to cut costs and streamline operations with Peugeot working in league with GM brands Opel and Vauxhall to create new products, while also giving Peugeot the possibility of getting back into the US market. While it is not an alliance to the same extent as the Renault-Nissan or Fiat-Chrysler combines, it is still a significant step, even if GM will not be able to buy more Peugeot shares in the interim.
Problem with F1 having a dozen car manufacturers competing is there can be only 1 winner and the losers will, by association, be viewed as ‘less capable’ despite the fact that there are very little to compare between the car you drive to work in and the car the competitors driver for work.
How is that new car manufacturer McLaren doing, Curious to know whether or not Uncle Ronnie’s sales projections are being met? Good luck to him, pretty ambitious to enter the market in these trying economic times but really good for the British car industry when not if he is successful.
I heard they were sold out for the next 3 years! Although they aren’t expanding production to meet demand (to keep the exclusiveness apparently) so that’s just over 1000 a year. Not huge numbers but still very respectable!
At the middle of January the Toronto McLaren dealership had sold 35 which is pretty damn amazing considering it hasn’t been open long and it is winter. I say it is doing pretty damn good plus the new McLaren F1 successor is being revealed in Monaco this year!
Incredible numbers, I’m in Toronto myself and can’t see those cars going into this market alone, they must be allocating per dealer with the dealer likely selling units wherever there is demand (other provinces, possibly U.S) Ferrari apparently had huge over demand for the Enzo a few years ago where people were “sourcing” and competing for cars in auction like fashion. Must be nice
No, brad is correct. Pfaff have taken that many orders for the Canadian market. There is only ONE dealer for the McLaren at this writing. I’ve heard the deal is that the cars will be serviced outside of Ontario by other ‘selected’ Canadian Porsche dealers for warranty/maintenance work.
The MP4-12C service people are Porsche tech’s who have taken special training. Right now they service any of the 12C’s that come in for service – in the Porsche bays. But the plan is to open two bays in a soon to be expanded section behind the McLaren show room. In fact my old service adviser has been moved over next door – Jimmy Vervitas. The problem with sales expansion for McLaren is the fact they are a one model company at the moment – which means that only pre-existing dealers who sell Lambo’s, Ferrari’s, Porsche etc have the where with all to service and sell these cars without losing their shirts on the small volume.
35 cars sold at an est $250K Can is NOT that incredible Andrew considering that Pfaff moves quite a few GT3′s and GT2 turbo’s that don’t leave much change from a $160K bill! They sold out their 2012 GT3RS 4.0L allocation in 2 days(!) – that car’s list is $211K Can. Not to mention that Pfaff sold every order spot for the new Porsche supercar – the 918 Hybrid @ $845K US due here in 4th quarter 2013. Customers buying the 918 also get a ‘chance’ to order a special GT2 turbo painted in the same colours as their 918 including matching carbon pieces for the interior. So figure this ‘deal’ rounds your invoice out to close to $1M Can!
Having said that, 35 cars IS a good first year response – but I have to question what the future numbers are for this brand after the ‘new kid on the block’ bloom has worn off. People (wealthy ones) can walk right across the street and look at an F458 for about the same price as the 12C and quite honestly, the F430 really rocks as far as looks and this coming from a Porsche owner. All things equal, (like a moderate Loto win) I’d take the F430.
So you can see where the 12C isn’t really a big deal in the big scheme of things as far as a profit center for Pfaff. More along the lines of future brand growth (maybe) and to get Chris Pfaff a new hobby and out of the other siblings hair…
Edit: “I’d take the F430.” to I’d take the F458!
Joe, any likelihood that now India has a GP, and that market seems to be expanding, plus TATA is getting more involved with F1 – that TATA would be interested in getting an F1 team? I could see a lot of benefit to them running a team if they cross-promote their own businesses and Jaguar would be an ideal re-entry! Given their current work together, there may even be sense in a Jaguar Williams team…?
One day I will have to ask Mr Tata that. The problem is that he runs away journalists.
There could be an Indian team going cheap before too long.
By 2014 it is just possible that economic conditions will be starting to turn up, so the timing could be right. Starting new vehicle developments now should see production hitting the market in 2014. A good opportunity to have road vehicles with quite similar engine/motor systems as that to be used in F1 in the same year. EVs and hybrids will form an increasingly prominent part of mainstream car manufacturers ranges. It is quit possible that the range problem of current EVs will be solved by then, either with new Envia battery or a graphene/silicon/lithium type now in development.
We shall then be back in a situation where F1 is contributing it’s technology to the ordinary road car, at present it is not so evident apart perhaps form Audi’s “Recuperation” as they call regeneration via brake effort.
I see that I was a bit too optimistic of the continued speed of design and development since I retired. They now mention 2016. Speed is the greatest factor in holding down costs.
http://www.bbc.co.uk/news/business-17213021
Good move by GM, it brings Peugeot’s range of car diesel engines within their grasp. They have the V6 diesel from Saab, but not much else.
I’m not a fan of Peugeot’s installations in vehicles, but the engines are up there with the best.
Ford were/are a Peugeot customer, and Land Rover are heavily dependent on them also for the TDV6 and others.
What about the range of Opel diesels?
They haven’t got a lot of home-brewed engines, they used the BMW six-cylinder back in the Carlton/Senator days, and their own 2.2 4-cylinder, but currently I think they only have the 3litre Saab V6 in the group that is a modern engine, the older Vauxhall/Isuzu diesels are long gone.
I was thinking more of GM in the USA rather than Europe when I posted, but GM still have the Phillipines plant as far as I know.
Looking at the FIA World Endurance Championship and todays presentation of Audis R18 e-tron quattro (flywheel technology by Williams HP), all that feels so much more open minded, as well as suited to technology development and real world application. And LMP1 cars still give me the creeps. (Toyota s’got diff. views and numbers, I know…)
Nevertheless, the FIA F1 CS must come up with open and smart rules on the tech side. They’ve done enough for the show now.
Joe – given the flak GM has received from taking US government bail out money (and spending some of it on propping up Opel), do you think that it will be well received in the US that they are now spending this money on Peugeot shares?