Remember the first time you moved out of your parents' house? Suddenly you were out on your own, without the security of a financial safety net. Same goes for car companies, so after Jaguar and Land Rover moved out of the Ford house and in with its new roomie Tata, suddenly the pair of British auto marques is searching for a new financial arrangement. And it's found one, thanks to the close relationship between Tata and Fiat.
Through a joint venture with French bank Credit Agricole, the Italian auto giant will be handling the financing of all new Jaguars and Land Rovers purchased across Europe. Fiat may have opted out of buying the two English automakers themselves, but the collaboration with Tata seems to be bringing them closer to Turin with each passing day.
Many of the biggest teams in Formula One extract enormous budgets from the automakers that own them: BMW, Renault, Toyota, Honda, even Mercedes-Benz, which is part owner of McLaren. Not Ferrari, though. The team, part of the Maranello-based sportscar maker, is owned by the Fiat auto group. However, Fiat does not contribute even one centesimo (er... euro-cent) to the team's budget.
This according to Luca Cordero di Montezemolo. And he should know, being both president of Ferrari and chairman of Fiat (in the mid-'70s, Montezemolo directly headed up the Scuderia before being promoted up the Fiat ladder). The marquis insists that the entirety of the Ferrari F1 team's budget is generated from within Ferrari, through the sales of its road cars (all of which go for six digits) and the team's sponsors, to say nothing of the company's considerable merchandising efforts.
