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Motorsport News: Russ Bonds Weekly Report

Be Careful What You Wish For... Michelin One Ups Formula 1

Last week I talked about the new rules or proposed rules for the 2008 Formula 1, and at that time I thought that only one stood a chance of going through - the single tire manufacturer.

Formula 1, for some reason feels that this is the way to go - to level the field. Im guessing Michelin agreed with them, as they have announced that 2006 will be their final year in Formula 1 - for the time being.

"This decision is the result of profound differences between Michelins long-standing sporting philosophy and the way Formula One is managed by the regulating authorities, which no longer provide a clear and sustainable environment to justify long-term investments," commented Mr. Edouard Michelin. "For

Formula 1, for some reason, feels that going with one tire manufacturer is the way to go - to level the field - but how will such a move affect teams running on the French tire makers rubber? (Photo: Auto Sport Press)?

Michelin, leaving Formula One in no way represents abandoning motorsports, to which the Michelin brand has been committed for 117 years. If F1s ways of functioning were to be significantly modified, Michelin would not hesitate in proposing its services to the different teams once again."

The rough translation is Michelin has seen the writing on the wall, and is not willing to stay involved until they are told they are no longer needed. Formula 1 wanted a single tire supplier, but not this

Michelin has seen the writing on the wall, and is not willing to stay involved until they are told they are no longer needed. (Photo: Auto Sport Press)?

soon.

So, by giving its partners time to secure deals for 2007, Michelin has essentially beaten Formula 1 at its own game. It has also put Bridgestone - the other supplier - in a much stronger negotiating position for 2007 and beyond.

But, my question is what will this decision do for Michelin teams this year? McLaren Mercedes, BMW Sauber F1, Renault F1, Honda Racing F1 and Williams may have just kissed their championship hopes for 2006 good bye, or have they?

Most feel that Michelin will not be pouring money into development this year, leaving their teams on their back foot. But, is this really the case? I think not.
You see, Bridgestone really has no

Bridgestone, Ferraris tire supplier, really has no incentive to spend huge dollars this year either, as they know, come 2007 and beyond, they will win every F1 race no matter what. (Photo: Auto Sport Press)

incentive to spend huge dollars this year either, as they know, come 2007 and beyond, they will win every F1 race no matter what, so why pour money into it now, just to beat someone you know is leaving. Michelin, on the other hand, may well opt to put in some development just to push Bridgestone as far as it can.

If I were a betting man, I would lay odds that somewhere, somehow, someone from Bridgestone and someone from Michelin have talked, maybe even over lunch. The gist probably was this: Lets not go nuts on tires this year, neither will win. Heres what we do. We [Michelin] will announce that we will leave after 2006, and you [Bridgestone] can then negotiate a strong deal for 2007 and beyond. This probably includes trackside signage, maybe even TV ads and overall TV time, hospitality suites and even use of the Formula 1 brand logo.

It is entirely possible that Michelin will show up fighting in 2006, to go out with a bang. (Photo: Auto Sport Press)

I know you are asking, "Russ, why would two of the largest tire manufacturers want to work together?"

Heres why. Michelin took a beating at the U.S. Grand Prix last year, and the only time you ever hear about tires is when something goes wrong - the finger is always pointed at the tires, and the tire manufacturer - which isnt good for business. You see, with competing manufacturers involved in a series, they normally both lose, because they both push the safety envelope to get the best tire possible. The only thing that comes out of this is bad news, for the most part. Ask yourself this question. Do you remember Michelin for claiming the World Championship with Fernando Alonso, or the debacle at Indy? Exactly.

Now with Bridgestone being the sole manufacturer, the cars and the sport will probably suffer somewhat. Tires will not be an issue, but rest assured they will be safe, and probably never have a failure. This means harder tires, which will slow the cars down, and yet, Bridgestone will still

Wickens, shown here celebrating his victory in Frances Race of Champions, raced from 27th on the grid to 6th place overall in Bahrain. (Photo: Stade de France? - Macary, Zublena et Regembal, Costantini - Architectes, ADAGP - Paris - 2004)

win the World Championship.

If you are a lover of true Formula 1, then pay close attention this year, it is probably the last time you will see a true chase for the championship for some time.

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