Business

Wednesday March 25, 2009

Staying ahead in F1

By EUGENE MAHALINGAM


Toyota team aims to win at all costs despite the global economic downturn

PETALING JAYA: The current global economic phenomenon is forcing everyone to revise their business strategies, with “maximising efficiency and cutting cost” being the popular motto these days. The situation in Formula One (F1) is no different.

Being the world’s most expensive sport, F1’s governing body - the International Automobile Federation (FIA) - has imposed various cost-cutting measures on the racing teams for the 2009 season.

According to Toyota F1 chairman and team principal Tadashi Yamashina, the changes would augur well for the team.

“These changes have worked well with our internal cost-saving procedures and I think we will become a stronger team as a result. We are leaner and more efficient now,” he told StarBiz in an e-mail.

The changes for this season include the extension of engine life and the reduction in testing.

Tadashi Yamashina (centre) poses with Toyota F1 driver Timo Glock (left) and team third driver Kamui Kobayashi (right) during the company’s activities outline for the 2009 season in Tokyo last week — AFP

But cost cutting had already been high on the F1 agenda even before the economic crisis hit, Yamashina added.

“We were already working with FOTA (the Formula One Teams Association) to reduce the cost of competing in F1 even before the global financial situation became such a talking point, so I think we have been quite well prepared,” he said.

FOTA was set up last year to represent the F1 teams in talks regarding the future of the sport with the FIA and commercial supremo Bernie Ecclestone.

In terms of financial resources, reports had claimed that the Toyota F1 team had the highest budget in 2008.

However, Yamashina was quick to play down those claims.

“Our budget is confidential. What I can say is that we are sure we didn’t have the biggest budget in 2008 and we will not have the biggest budget this year,” he said.

He declined to comment further on the team’s budget strategies for this year, but said that in line with the FIA’s cost-cutting requirements, its budget would be smaller than last year.

Despite the slash in budgets, Yamashina said he was pleased that the team’s sponsors were unaffected.

“We started 2009 with more sponsors than we had in 2008, with RE/MAX (an international real estate company) and Chiemsee (a clothing designer) joining us,” he said.

Yamashina said it was also very satisfying to extend Toyota F1’s title partnership contract with Panasonic in January.

“We are proud to have some very loyal partners. But we are still working hard to give Toyota more value for their investment in F1, so we have to be more efficient and do more with less,” he said.

Whether there is an economic downturn or not, Yamashina said the team’s objective would always remain the same – to win at all costs.

“We exist to win and we want to do that this year. It is a difficult time for everyone in business or sports, but the important thing is to be able to achieve your targets. My job and strategy is to deliver the best value for Toyota,” he said, adding that apart from the economic downturn, F1 itself posed its own unique challenges.

“It is a very competitive sport with many strong teams, so success is not easy. For me, one of the big challenges compared with working on road cars is that in F1, you are judged every two weeks. In road cars, you have years to develop it,” he said.

According to Yamashina, the Toyota F1 team has about 650 employees, ranging from drivers to designers and mechanics, who specialise in every aspect of its cars.

It also comprises administrative support such as logistics, human resources, finance and legal.

He noted that the barriers to entry of joining an F1 team were high.

“There are only a few thousand jobs in F1 and millions of people who would love to work in the industry, so that means there is a lot of competition,” he said.

However, he said that “if you have the right training, a love for the sport, and the energy to cope with long hours and stressful situations, there is always a chance.”

The same goes for those who aspire to drive an F1 car.

“It is not easy to become an F1 driver, but if you have the talent, the dedication, and the passion, then nothing is impossible,” Yamashina said.

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