WELCOME SIGHT: Every F1 driver wants to see the chequered flag first - perhaps cost-cutting could help more of them get there. Image: Shutterstock.
LONDON, England - A study commissioned by the International Automobile Federation reportedly shows that costs in Formula 1 could be halved without hurting "the show".
With Caterham and Marussia ailing and even better-funded midfielders struggling financially, it emerged on Tuesday (Feb 17 2015) that New York-based McKinsey and Company, a multinational consulting firm, recently examined the finances of nine F1 teams at the behest of the governing body.
In its findings, revealed by Germany's Auto Motor and Sport, McKinsey has proposed cost-cutting measures that could help teams such as Force India, Sauber and Lotus - with budgets in the range of $120-$200m to survive and thrive.
Focusing on a $120m a-year team, McKinsey reportedly found that almost $30m - a quarter - was spent on the engine, but that a 25% cost reduction would be feasible.
The study also found that 35% of the design and production process, 15% of Grand Prix activities and 20% of testing costs could be slashed.
Correspondent Michael Schmid reported: "Teams such as Sauber, Force India, Toro Rosso and Williams could be funded solely from the distributions from the commercial rights holder."