Caterham F1 - it's official

[jfgw]

Pretty cool...http://news.bbc.co.uk/sport2/hi/formula_one/15579228.stm

[James A]

As an owner of two Caterhams I think it is a really cool connection also, but I'm worried. Now Caterham Cars is tied to the fate of an F1 team and except for a very few long standing teams the life span of an F1 team is short, very short. So if the team folds does the car company? It the team is sold to say Monster Energy Drink is the car company sold also?

Just a little worried that a sound business like Caterham Cars is now connected with a notoriously fickled business like F1.

[Kitcat]

James A:

 

You took the words (worries?) right out of my mouth. I can see little Caterham getting sucked into this whole F1 drama, and bottomless money pit, and disappearing.

[supersportsp]

Mercedes, BMW, Renault, Honda, Toyota, and Lotus all survived teams folding. Granted, all but Lotus had very deep pockets.

 

Caterham is a tiny company with a tiny valuation. The primary value is in the brand name and its association with very fun dedicated drivers cars. Some monied enthusiast could always buy the assets of the road car company.

 

I wouldn't worry about the F1 team folding and its impact on Caterham. I would worry about AirAsia's financial status and the wealth of Tony Fernandes causing short term pain to the road car company.

[James A]

The big difference I see with the car companies who have survived F1 departures and Caterham is that the total asset value of Caterham is likely less than one year's budget for a Tier 2 or 3 F1 team. And most of the other car companies exited by choice, again if Caterham F1 gets in financial trouble, Caterham Car's asset value wouldn't do them much good! If the other car companies teams got in trouble they could write a check.

Yea, the Air Asia thing is another aspect of the financials I did not even think about!

Damn, now I am even more worried.