Analysis: Carmakers Want to Show they Mean Business

The Brazilian Grand Prix came as a big relief to all at Interlagos on Sunday, and not just because it was the end of the Formula One season.

People could concentrate at last on what they were really there for - a motor race, and a good one at that - rather than endless paddock politics.

It was a respite, a momentary truce. There seem to be so many battles being fought and on so many fronts that it can be hard to figure out what is going on and why.

The British Grand Prix is axed one day, given encouragement the next. The fate of Jordan, Jaguar and Minardi remains uncertain, while Mercedes, Honda and BMW are considering taking the governing International Automobile Federation (FIA) to arbitration over new engine rules.

No sooner are the regulations for 2005 and 2006 announced, after months of debate, than nine of the 10 teams suddenly come up with their own proposals that, if accepted, would change everything again.

The calendar could be 17 races or 19.

Concorde Agreement

It may all seem chaos and confusion but there is a common thread behind it.

The key fact is that the 'Concorde Agreement' between teams, the FIA and commercial rights holder Bernie Ecclestone expires at the end of 2007, by which time the supremo will be 77.

There is a war being waged for control of the sport, a fight for the division of revenues between Ecclestone and the major carmakers. It is never far from the surface and there will be turbulence until it is resolved.

If the threat of a split has been largely talked down in the past, the carmakers behind the Grand Prix World Championship (GPWC) served a reminder this week that it remained a possibility.

There was nothing earthshaking in the announcement by DaimlerChrysler (Mercedes), BMW, Renault and Ferrari on Tuesday that they were pushing ahead with plans for their own series first mooted four years ago.

They had said they were going to do that last April as well when they broke off a memorandum of understanding with Ecclestone's holding company SLEC. What was new was the fact that they had appointed consultants to "start building the operational and commercial structure" for the "new pinnacle of motor sports".

This was a message designed to show that the manufacturers mean business.

The consultants are iSe (International Sports and Entertainment AG), a joint venture founded by Japan's Dentsu Inc, billed as the world's largest advertising agency, and Publicis Groupe of France.

Their resume includes work on FIFA's soccer World Cup, the Olympic Games, the UEFA Champions League and European soccer Championship.

Leverage Exercise

Some, like Ecclestone's old friend and Australian Grand Prix promoter Ron Walker, remain dismissive.

"I think it's a leverage exercise by Fiat and Renault and Mercedes and BMW to try and force Mr Ecclestone to distribute greater funds from the revenues," he said. "I think there's a conspiracy between the motor manufacturers and the banks to try and force Mr Ecclestone to do things that he doesn't want to do."

That would not be surprising. But the fact remains that from 2008 the carmakers can do what they want and are making sure they are in a position to do so should push come to shove.

Since their membership has dwindled, with GPWC founder member Ford selling Jaguar and leaving the sport, they are even more determined to present a united front.

Fiat and Ferrari boss Luca di Montezemolo spelled out the position in September: "Such an expensive sport cannot survive if we don't increase revenues," he said.

"A certain era is finished and we have to look at something new which is totally acceptable to the players who at the moment get only 47 percent of the money from TV rights and nothing from the tickets, advertising and other sources of income."

As one GPWC insider declared this week: "The Montezemolo outburst in Monza was not theatre.

"The chances are bigger now that the banks will give in or force Bernie to come up with a deal. But we are pressing ahead with our plans anyway because, the way we see it, the business case is a no-brainer."