Honda website

MAY 27, 2005

Formula 1 too expensive?

For those who say that Formula 1 is too expensive and that car manufacturers cannot afford the sport, one should point that in the overall scheme of things, F1 is still a small investment for any big company. Inefficient car companies cannot afford it, but when things are being run properly the profits can be extraordinary. Toyota has just announced its financial results for 2004 and for the fifth consecutive year it is the biggest profit-earner in Japan, having declared income of $7.35bn. In the circumstances a Formula 1 budget of $400m is not such an outrage, given the advertising value that the sport will bring the company.