Further to my post yesterday regarding Force India, I am hearing that some of the team’s suppliers have been contacted in recent days saying that the team is suffering from an unexpected cash-flow difficulties and asking for the suppliers to agree to accept different (and delayed) payment arrangements. Some of the suppliers are not happy about this and it is possible that this will result in action to try to force the Indians to pay up. This is not good news for the team.
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joeblogsf1 
‘unexpected cash-flow difficulties’………I guess that may have to result in the ever-popular phrase that I used to hear a lot when I worked in banking; ‘the cheque’s in the post!
Is Nico Hülkenberg just the unluckiest guy in the paddock, or quickly becoming a leading indicator for impending monetary troubles?
I think it is fair to say that this has been coming for quite a long time. I seem to remember being abused by a whole lot of Indians some time ago for drawing attentions to problems as they developed.
Yes Joe, (recent) history appears to have proved you right here. You’ve been drawing our attention to this (the financial (in)stability) for many months now. Some of us chose to listen while others didn’t …….or perhaps wouldn’t.
Reportedly he refused to sign any contract without a big payment in advance. Ironically, Force India seemed surprisingly strong in the testing with a powerful Mercedes engine, one started thinking if they could be real contenders this season.
He’ll be developing a thick skin that’s for sure. Will be a shame it this season it derailed by money problems as they are looking good performance wise.
I really hope this team gets some stability. They have been consistently moving up the grid since they joined the sport and WERE an example of how a privateer team should be run. Hopefully someone with deep pockets (but no handcuffs, failing airlines or the like) can rescue them. Maybe Tata Motors should step in. Buying an ‘Indian’ Team with all of the equipment would be better than starting from scratch.
Yes, I have thought since it became apparent that VM & RS had insoluble difficulties that Tata would be interested. However given the loss of face the duo would endure if the team went to another Indian owner they would probably prefer it went to a company outside the country.
They would probably spin it so that it looked like they invited someone else to take over ‘for the good of the Team & Employees etc’. They have some really talented people. I cant help but think their turn of pace over the last couple of days is to try and attract some more money. I think another user alluded to that fact in an earlier post. I wonder if the rumour that the FIA wont make a decision on which new team can enter for 2015 yet will make some people look at buying an existing team instead?
Tata could then re-name the team “Jaguar” 🙂
Exactly
Maybe someone should fire off an email to Tata and suggest it 😉
Poor Hulkenberg!
Well, they seem to have built a pretty good car this year with far less resources than most others including Caterham. I can understand why many people would like to see them vanish from the grid. Let’s hope a way can be found to keep them there.
Does this explain the pace of the Force India this week, as they look to get headlines about being the fastest in order to help the marketing departments?
Thats just what I as thinking
It would be suspicious if they hadn’t put in so many laps. Reliability looks likely to be a major factor in the first several races.
Congratulations to FI for putting together a solid basic package. Now’s the time to get it right, before the megabucks teams spend their way back to the front.
Like Bernie says, “there’s always another billionaire” (willing to torch his money on F1). Let’s see if Bernie is correct; he usually is.
And that billionaire is Gene Haas. Depending on the debt load Force India could be a good buy for someone with enough funds. They could indeed be the best of the rest this season.
Sounds like an obvious plan Curly, and not the first time an F1 team has done so in winter testing….
Just read that Roy Sahara has been indicted in India and the police is looking for him. Apparently is not allowed to post bail if caught…
You are a little behind. He surrendered to the police earlier today
It seems that for a while they were hanging on, inches away from getting ground up in an active woodchipper.. it seems that they are losing their grip and starting to hit the chipper….
Not sure if it would be a trade up if Tata did buy Force India. I can’t see it happening, Le Mans makes more sense to Jaguar similar to Porsche.
Stewart –> Jaguar –> Red Bull
Jordan –> Midland –> Spyker –> Force India –> Tata (Jaguar)?
Jag similar to Porsche or Mercedes???? Hmmm a Juguar Mercedes doesnt sound quite right …..
I seriously hope this pans out OK. Must admit I am still worried about Lotus.
May be worth looking a couple of hundred yards down the road; Aston Martin; strong links to Mercedes and backed by a few investment houses headed up by some interesting billionaires.
I have been a FI supplier for all it’s life and long before then and they have had cash flow problems pretty much off and on since Jordan GP on. Nothing changes, the recent 2m CFD upgrade has been quite a drain.
Nothing new with this and as a supplier you always have to battle with Margaret to get paid (like she has to battle to get money in from shareholders and sponsors alike) but they have never not paid me.. eventually.
One day it might be different but till then I keep on keeping on.
Others don’t agree…
don’t agree with what?
I am at the coal face of supplier remuneration. The only suppliers who get paid up reasonably on time are those who supply the car and race team. All the others are in the to do pile.
Nothing has changed pretty much since FI day 1 and if you are suggesting previous years were different to now or this payment delay thing has only just come to the fore is simply not the case.
Last year it took me 4-6 months to get paid up. That’s how it goes with them. Rarely if ever do they pay less than 3 months. I live with it as I love the team and the people there.
Of course other suppliers possibly new to the team (one springs to mind) probably are unaware of this are getting twitchy. As I say, they have never not paid so until that changes I remain loyal to them.
sorry if this isn’t quite what you hoped for but that’s the truth.
So the people who tell me this are not telling the truth and rang me up for no reason at all…
That isn’t what I am saying at all and I am not sure why you would want to think that. In fact I am agreeing that they are not paying but pointing out this is nothing new. It’s made worse by the recent CFD upgrade c/w their domestic situation
If you had asked me this at anytime in the last 5 years I would have told you the same story. In fact I believe I have in previous posts when FI finances are discussed here.
FYI the fact I was asked to form part of a winding up petition back in ’10 (as one contractor was owed a substantial sum and wanted 2 others which wasn’t needed at the end as everyone got paid up in full) shows this is same old same old with the proviso that both owners are further in the mire.
I am not saying they will or will not pay or can or cannot pay but their history of paying isn’t any different now than it was back in October last year for example.
That appears to be more of an indication of how Mallya runs his companies rather than anything specific to the race team. It seems his businesses have slow pay/late pay and in some cases no pay. As you say, this is nothing new and dates back to the beginning of the team in this carnation when they stopped paying for their motorhome.
it’s plain silly to nail it down to Mallya. He is a minor shareholder in this business so how is it all his fault?
Surely by now people realise that Sahara holds sway as major shareholder not VJ. or does that not suit the agenda?
Don’t let the truth get in the way as they say. From what I have heard it is Sahara who are shy in coming forward and VJ is the one trying to get funds in to pay the outgoings.
FYI my worst bad payers
3 x English companies
1 x US company (their g.ment)
FI = Indian
Of course all is not rosy and I would love a huge wedge to come in and sort this all out but I believe they are really up against it back home and the fact is they could end up in jail for their business mis-dealings but the team has a reasonable chance of securing that elusive podium this year and I for one hope they do find a way out of this minor liquidity issue.
They’ve had problems well before Sahara was on board. Mallya companies have a history of not paying bills or slow to pay. That’s a fact. You’ve said yourself you’ve waited months to be paid. Unless that is part of the arrangement prior to services it’s not a standard business practice and not a good way to run a business. They don’t like paying their bills, it’s no secret.
Few clients like paying their bills. If a company is taken over or the majority shareholder changes and they remain as before then it’s a company policy rather than a personal one.
There was a famous case whereby Boots who were known as good payers were taken over by alliance who changed sub contractors terms to 3 months (and took 10% off all invoices currently in the system without notice) without so much as a kiss my arse. I think the line was “You will support us in this won’t you……….” passive bullying at it’s best.
“Boots has struggled with more ongoing criticism, however, of its changes to suppliers payment terms, with suppliers being told they have to wait 90 days before being paid – a measure that impacts particularly on smaller suppliers at a time of recession. ”
That’s what big business do to small businesses all day every day.
For the 4000th time, I am going to say that I do not want to see links included in comments. I am not here to advertise for others. Similarly I do not want sales pitches from the commenters. These will be deleted.
my sincere apologies for falling foul of the rules.
Off course they wouldn’t agree everyone has a different opinion on money owed to them in a business transaction. It would be nice if payments were all paid on time from long experience the bigger the company the harder it is to get paid they seem to find layers of management to hide behind their obligations.
why is everyone except Autosport running this story Joe?
Why ask Joe? Autosport has a history of not running anything that they can’t confirm from the party. So unless SFI issue a statement confirming, they’ll likely report nothing.
Really? Hav eyou worked at Autosport and know how it works?