MARCH 17, 2003
As we wait for war...
The outbreak of war in Iraq is unlikely to have much of an effect on the motor racing world - at least in the short term. There are likely to be disruptions in transportation and other minor upsets but a US-led attack on Iraq will not in all likely have any effect at all on the world of Grand Prix racing.
However there are likely to be effects on the sport in the longer term, depending on what happens when any attack begins. It is expected that there will be some serious economic effects when war breaks out and this is likely to increase pressure on the automobile companies, who are already struggling to make profits in a very flat market. There is also likely to be a significant disruptions in global trade, particularly for companies which have relocated manufacturing to Asian countries and this may hit the profit margins of some F1 sponsors. The disruption of trade has already begun with insurance rates rising and fuel costs higher than for many years.
There are some who argue that once the war starts the markets will rebound as the uncertainty will be over.
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