Cost-cutting saved the Williams team

Frank Williams recognized that the cost reduction implemented by the FIA and the FOTA has provided a lifeline to his team.

The Williams team was considered particularly vulnerable to the economic slowdown because it is not a car manufacturer (its engines are made by Toyota) and because several of its partners are severely affected by the financial crisis.

Baugur was pulled down by the collapse of a part of the Icelandic economy. Its main sponsor RBS is also facing difficulties. Petrobras and Lenovo have ended their collaboration with Williams.

In an interview for the Financial Times, Williams describes the new budgets as a fresh start for his team.

Given the financial pressure we are facing, changes in regulations that lead to cost reduction are a great advantage.

Williams acknowledged that his team has been operating at a loss in recent years but believes it can turn things around by reducing expenses in the coming years.

« We need to make a profit, » he announced. « To be effective and to be sure to stay in the race, we also need to be successful financially speaking. That is why we need to make a profit every year. We have been at a loss for two or three years, but we have reserves and resources to manage that. »

According to another report published in the Financial Times, the holder of the commercial rights in Formula 1, Bernie Ecclestone, advanced the sum of 14.5 million pounds (more than 15 million euros) to Williams to keep them afloat.

« It’s a down payment, » explained Ecclestone. « They are entitled to certain payments in return for signing the Concorde Agreement. »

« I believe it would be fair to say that we have reached a level of borrowing that is not acceptable to the board of directors, » Parr told the Financial Times.