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Having laid off 1,000 employees in the past couple of weeks, along with approximately 1,700 people at its Fairfax Assembly Plant in Kansas, General Motors is planning to enter Formula 1. The financial commitment is substantial, involving both the anti-dilution entry fee of $200 million required by the FIA and the high operational costs of fielding a competitive team in Formula 1. Estimates suggest that running an F1 team annually can cost between $100 million and $200 million, depending on development and infrastructure expenses, even under the sport's cost cap regulations. GM's long-term participation is also expected to demand ongoing investments in power unit development, staffing, and logistical support. It seems like a massive waste of money and I’m sure those people who were let go by email and who face an uncertain future are thrilled. But enjoy your helicopter rides to the enclosure. #dobetter #F1 #formula1 #efficiencies #layoffs #peoplefirst
Absolutely insane. Pure ego and folly. And, I'd be shocked if Formula One involvement translates into Cadillac sales.
They've lost their soul. Shameful timing and actions.
States fault, I remember Nissan plant in Mississippi, 90% of the jobs had to be people living in Mississippi, the other 10% could be managers or engineers from other states. Some States smarter than others, Tennessee doesn't have a huge debt writing up IOUs for the state taxpayers 10 years down the road.
I would love to see your post not only considering the cost of their F1 activities, but what is the result at the bottom line (including marketing effect, etc.). It´s like: Look, GM spent XYZ amount of $ running their plants - they should shut them down. Is it still a gut punch for people that get laid off? Probably. But we should do a better job at evaluating situations and not just look at the one side that is supporting our argument.
CB XU
3w
Think what kind of joys (traveling, good meal, bars with maked…) it will bring to mid-high level management, In the name of business a d paid by the company.
Graham H.
3w
The point you make is fair to a degree, but many of the teams on the F1 grid actually manage to break even against their spending budgets under the cost cap. Between additional sponsorships and prize money there’s plenty of ways teams manage to reduce the cost to operate.
paul wasko
3w
More waste by GM…Mary driving GM off the cliff just like Joe did to America the past 4 years
Terrible for the employees who were laid off no doubt. However this move is well warranted given the success and climb F1 is on and will continue on.
It does seem tone deaf, but it also seems like being involved in car racing is table stakes for an auto manufacturer?
CEO at JRT, CG Detroit, Steady Mobb
4wI don’t think it’s a waste. Necessarily. If GM/Cadillac want to be a global brand and will commit to a minimum of eight to ten years, it could be a great marketing platform. And, they will not be chinning the total cost as TWG will be bringing on other sponsors, including a title one (like Mercedes has Petronas). Now, if they are not committed to the timeline and the global nature of the exposure, then I agree, they should not embark on this..