OCTOBER 20, 2008
Questions over ING
The news from Holland that the Dutch government is to buy shares in ING to help the company in the current financial crisis have raised questions about whether or not the bank will be continuing its involvement in F1 in the long term. ING had taken a hammering on the stock markets after predicting a $670m loss for the third quarter. The company has agreed to sell its Taiwanese life insurance subsidiary for $600m. The Dutch government will not have voting rights but will have an influence in the question of payments to executives and will get a share of the profits. It will also have two members on ING's supervisory board. The government has provided ING with around $19bn to support the bank.
ING has enjoyed a very successful sposnorship with Renault, despite not winning much. This has been very successful at raising the profile of the bank. If ING does cut back on its spend in F1 it would affect not just Renault but also the Formula One group as ING has several title sponsorship deals for races and a lot of trackside signage.