20/08/2006
NEWS STORY
Max Mosley's drive to cut spending costs in F1 looks set to take a human toll as workers in the F1 industry face redundancy.
Writing for The Independent, Christian Sylt and Caroline Reid report that Cosworth, which currently supplies engines to WilliamsF1 and Toro Rosso, is set to cut its workforce by up to 40 percent. However, with the proposed engine freeze, together with a raft of other cost cutting measures, including plans to severely restrict testing, thousands more workers face the dole queue.
"There are bound to be redundancies," Max Mosley (right) told Sylt. "If you employ 1,000 people to put two cars on the grid 19 times a year, and you can do the same thing with 200 people, at the same level... well then, those 800 people, they haven't got a job."
Currently, employment costs account for around 30 percent of team turnover, with the 'average' F1 team generating between £160m - £220m in income. The FIA's proposals are intended to slash employment costs.
"The target is to set the budget for a top team, which is currently spending £205m, to £70m, and then a small team could be competitive with £27m or £35m," said Mosley.
The UK, which is the base for seven of the current F1 teams, would be hardest hit.