Industry News
News for 23rd March 2007
Australian GP figures questioned
According to a report in the Australian newspaper The Age Des Pearson the new Auditor-General of the state of Victoria is due to present a report that will question the economic benefits of the Formula One Australian Grand Prix to the state.
The Age says that Pearson’s report, due within weeks, is believed to deliver a stinging assessment of the Grand Prix, warning of rising public costs and quotes a source close to the state government who claims that the cost of staging the Grand Prix would rise by $3 million to $4 million a year under the terms of a new licensing agreement that lasts until 2010. The source also said the cost of the 2007 event was "roughly $28 million" and could increase to as much as $42 million by 2010. The Victoria government claims that the Grand Prix will boost the state economy by $175 million over that period.
Silverstone masterplan unveiled
On Tuesday at presentation attend by the UK Sports Minister Richard Caborn, the British Racing Drivers Club unveiled its Silverstone Master Plan, which is aimed at ensuring that the Northamptonshire race circuit retains its contract to stage the Formula One British Grand Prix after the current deal expires in 2009.
The presentation was also attended by BRDC President and 1996 Formula One World Champion, Damon Hill and guests that included heads of local County Councils, District Councils, planners, higher education authorities and Regional Development Agencies.
Richard Phillips the managing Director of Silverstone Circuits Limited and Spencer Canning its Development Director made the presentation on behalf of the BRDC. Sports Minister Caborn was invited to contribute his views on the future developments of Silverstone and he spoke enthusiastically about Silverstone becoming a Centre of Excellence, providing future opportunities for education, skilled jobs and tourism.
The Silverstone Master Plan, formulated by Canning and a property advisory committee of BRDC members, has the full backing of the Club and informal meetings have already taken place with Aylesbury Vale District Council and South Northants District Council, who govern the land on which Silverstone Circuit is based.
The purpose of Tuesday’s meeting was to speed up the process of moving the Master Plan from an initial concept, through to its early adoption, thus releasing value from the Silverstone Estate in order to provide the financial means for the BRDC to implement necessary works required to retain the British Grand Prix at Silverstone beyond 2009.
In addition to developing and improving circuit facilities, the Silverstone Master Plan will enable Silverstone to realise its ambition of becoming more than a Grand Prix Circuit, and retain its position at the heart of motorsport valley. The long term objective is to expand its function and relevance to motorsport, leading technologies, education and training and, finally, to ensure that the UK continues to be the global leader in these specialist areas.
Included in the Silverstone Master Plan are new grandstands, new pit and paddock facilities, a science park, a manufacturer test centre, a small amount of residential development, and a hotel and conference resource. In addition, plans have already been submitted for Porsche Cars GB to develop a Porsche Driver Training Facility at the east of the circuit, while the Silverstone Study Centre, jointly funded by Silverstone Circuits Limited, Northamptonshire County Council and the Department for Education and Skills, has been operating since September 2006.
Phillips said, “Over the last 60 years Great Britain has taken the lead in motorsport technology from the Italians, Germans and French. Silverstone sits at the heart of motorsport valley, which is made up of over 2,400 businesses - 40% of the motorsport cluster - and employs the highest concentration of engineering excellence in the world.
"Governments around the world are recognising the importance of motorsport in their economic mix and we need to create the right environment to develop a Centre of Excellence that encompasses education; research and development; manufacturing and design; and lateral integration with other high tech industries, such as the automotive and aerospace industries. If we can achieve these targets we will secure our position at the top of this high tech sector, and offer sustainable growth for the entire region.”
Speaking about the significance of the British Grand Prix, Phillips said, “Maintenance of Grand Prix racing at Silverstone is an essential ingredient in the growth of motorsport valley. 70% of our business activity is directly attributable to events, of which 85% is Grand Prix related. To change this balance we have to develop the estate and allow a wider diversification of business types to come to Silverstone.
“Beyond the development it is very necessary for the core business to be allowed to grow and flourish. We must diversify our activities; raise our game with state-of-the-art facilities; excite new audiences to our venue; and build a sustainable business in order to minimise the risks associated with the cost of Grand Prix Racing. Only then will we able to afford it, and will UK PLCs benefit.”
The Minister for Sport, said, "Silverstone is a world leader in many ways and should not be underestimated. The Master Plan really builds on the Silverstone brand and shows a great deal of potential. It outlines the beginnings of a major Centre of Excellence that will rank up there with any in the world helping to ensure the supply chain to this sector is maintained for years to come.
"The Master Plan is not only important to Silverstone and its continued hosting of the British Grand Prix, but also the development of the sport in this country. It gives a real opportunity to British Motorsport to realise its ambitions in the not too distant future."
BRDC president Hill said, “Our objective is to continue with development and improvements to keep up with the incredible pace, not only of Grand Prix racing, but of development generally in the automotive business. I don’t think you can underestimate the effect the Grand Prix has on the environment and the industries; employment and also on the country. We very much hope that after today we can move forward to make Silverstone a place we can be really proud of in this country, not just for the BRDC, but also for the UK to beam motorsport and our event around the world."
Beijing A1GP race dropped
The 2007-8 A1 Grand Prix series will not include round in Beijing, China after the race promoters said that they could not afford to cover the ‘huge’ losses that resulted from the 2006 event.
According to a report in the Shanghai Daily newspaper the "World Cup of Motorsport" race held on street circuit in Beijing in November 2006 cost 20 million yuan (about $2.6 million) and attempts to offset these and other expenses through sponsorship from local businesses had proved disappointing.
The race promoters Haiyi also stage an A1GP race in Shanghai. Haiyi deputy general manager Guan Yunke said, "We have worked our socks off to get everything right for both rounds over the past few months, but the financial burden to stage two races in a year is overwhelming with huge losses. Therefore we decided to drop the Beijing leg next season."
"Despite its growing popularity, A1 remains a hard-sell to sponsors."
Formula Woman adopts bio-ethanol to improve motorsport image
The UK’s 2007 Formula Woman race series will be contested by cars using E85 bioethanol making it the first UK race series to be run wholly on a fuel derivevd from renewable resources.
Steve Hindle, the managing director of Hyperion Motorsport that operates the fleet of Caterham Roadsport cars that are used in the Formula Woman series told Autosport magazine, “When we considered how our competitors would find sponsorship we found that an increasing number of businesses have a negative perception of motorsport. This combined with the growing debate on green issues, meant that we had to find a solution so we looked into the possibility of using renewable source fuels.
“We’re happy to take the first step by racing on E85, but this is only the first step and we’re already looking to commence fuel reduction tests.
“In the current political climate motorsport is a soft target. Either we create and drive the agenda or we’ll become subject to legislation.”
The Formula Woman series has also become an EEMS Campaign Partner.
FFSA president resigns
Jacques Regis, the president of the Federation Francaise du Sport Automobile (FFSA), the governing body of French motorsport has resigned with immediate effect.
Regis, who has in the past been an outspoken critic of FIA president Max Mosley, said that his decision to resign was a personal one. FFSA treasurer Jean-Claude Cresp will assume the FFSA presidency ahead of the election of a new president at the organisation’s general assembly in the summer.
Race Retro this weekend
The UK’s Race Retro Show, formerly the International Historic Motor Sport Show takes place this weekend at the National Agricultural Showground at Stoneleigh Park near Coventry.
The show covers all aspects of historic motorsport including racing, speed, rallying, trials and autotests. In addition to three halls of indoor displays there is action outside with special stage rally displays by Group B rally cars and a display of historic karts. There is also an indoor motor bike trials competition and a large display to celebrate the centenary of the Isle of Man Tourist Trophy motorcycle races.
‘VED smokescreen hides non-green motoring Budget measures’ - CAP
Hikes in the road fund licence for 4x4s and other large engined vehicles have masked disproportionate increases for many smaller car drivers, according to Mark Norman of CAP, the residual value guide publisher, who notes that the alignment of petrol vehicle excise duties with diesel now means a 50 mpg petrol Vauxhall Corsa 1.0 Expression sees an increase in VED of £5 more than a £30,000+ Audi A4 diesel 3.0 TDi TDV Quattro S Line delivering 34 mpg and emitting 66% more carbon dioxide.
While media focus concentrated on the new Band G charge of £300 for the highest polluting vehicles, rising to £400 in April next year, Norman says the real impact of this budget is to raise additional revenue from the majority of drivers – regardless of the environmental impact of the cars they drive.
Mark Norman said yesterday: “An increase of £15 in annual VED might not seem all that much but it is actually the largest increase in road fund licence duty for the average car since the new CO2-banded taxation was introduced in 2002 … the alignment of petrol VED with that of diesel is the real story in this budget, because it affects many millions of car owners with an increase well above inflation.”
(www.cap.co.uk)
- CAP rival Glass’s said the budget presented fleet managers with a golden opportunity to make significant cost savings and demonstrate their green credentials; the rise in VED for vehicles in band G (those emitting more than 225g of carbon dioxide per kilometre) to £300, then to £400 in 2008, affects one in seven of all new vehicles on sale, and these models are typically bought by fleets rather than private buyers. VED for band B vehicles (those emitting between 101g and 120g of carbon dioxide per kilometre) will reduce to £35.
Adrian Rushmore, Managing Editor at EurotaxGlass’s, says, “Some fleet managers will be able to lower costs on VED by reducing the number of band G vehicles on their fleets and opting for lower-rated alternative models. They could also benefit in terms of depreciation by avoiding the highest-rated vehicles. For example, large-engined executive saloons will normally lose their value more quickly than their smaller-engined equivalents.”
New Clean Green Cars website launched
A website dedicated to greener motoring has been launched. Clean Green Cars’ (www.cleangreencars.co.uk ) aim is simple: to provide clear, easily understood advice about choosing and using cars in a more environmentally considerate way.
Publisher Jay Nagley says, “A major goal of the site will be identifying the greenest cars on sale today - not just the greenest cars of all, but also the greenest by vehicle type. Clean Green Cars recognises that a small diesel hatchback or a hybrid will not suit everyone, and makes recommendations across all vehicle categories to enable buyers to identify the greenest off-roader, people carrier or small sports car.”
Clean Green Cars will also provide:
- Daily news on green developments in cars, fuels, green technologies and government initiatives.
- Practical news on car use, such as models exempt from London’s congestion charge, the availability of bio-fuels, restrictions on the use of high CO2 models and more.
- Reviews of new cars from a green perspective.
- Green feature articles, ranging from the background of bio-fuels to the latest on fuel cell technology, incentives to go green, news of the latest green experimental cars and more.
- Jargon-buster. Just what is a fuel cell? What are bio-fuels, and how do they help? How does a hybrid work? Why are engines being ‘down-sized’?
- Manufacturer Watch. What are the car makers doing to reduce the environmental impact not only of their cars, but their methods of producing them?
Clean Green Cars is to be associated with the Goodwood Festival of Speed 2007 and in particular the event’s new Technology Pavilion. The Festival is to be held in the grounds of Goodwood House, Chichester on 22nd, 23rd and 24th June 2007.
EU biodiesel plants working well below capacity
The EU biodiesel industry is working well under capacity despite political moves to increase biofuels use, although the medium-term prospects were improved by this month’s EU climate change strategy, and plans for biofuels to contribute to road transport CO2 reductions. Many new biodiesel plants have been built but as yet many of them hardly have a market, according to Raffaello Garofalo, secretary general of industry association the European Biofuels Board (EBB).
Biodiesel sales in Germany have fallen this year after the government began taxing biofuels. Medium-term prospects were excellent following the decision by EU leaders on March 9 for a strategic cut in greenhouse gases by using more renewable energy. Britain, besides Italy and Spain, was accused by Mr Garofalo of not fully implementing policies to increase biofuels use.
(Planet Ark/Reuters, 23 March)
Transport C02 emissions forecast to increase
800 researchers from 36 countries meeting at Milan this week at a transport and the environment conference organised by an EU research body heard that research from the EU body had led to the conclusion that the transport sector will be showing the fastest growth in carbon emissions by 2010, and could even come to be responsible for 30% of global CO2 emissions, compared to today’s 21%. 95% of transport emissions derive from road transport, according to the study reported this week by Germany’s Die Welt newspaper (21 March)
