Quote:
Originally Posted by Adam43
This is a real shame. Hopefully it'll be sorted for Le Mans.
Ginetta has grown its production and turnover over the last few years. It produces quite a few cars now, expanded its one make series across the world and there is the LMP3 chassis. Quite a difference from not that long ago.
It's turn over was £9.2m (2017). The addition of an LMP1 programme is quite an addition to that and one that is more risky than selling the lower cost units. It is not something that could just fund themselves - they aren't a major manufacturer. They would need partners, customers, whatever you want to call them.
The LMP programme started, in earnest, quite late (as it did with most of this year's entrants). However the time as right and it was felt that here was benefit in getting in this year with the change in emphasis to LMP rules (as it did most of this year's entrants). I am surprised that so many could find the backing to produce cars. The money to spend on something as frivolous as motorsport is finite. Not enough to fund the other prospective Ginetta teams.
They partnered with Manor. Superficially a sensible choice, not particularly for their F1 efforts, but because of their previous success racing in other categories. From what I can see the problem is Manor not getting the money from their sponsors. It doesn't look wise for Ginetta to try and support that.
The return on investment for a fully funded Ginetta is probably marginal at best. For it to even be worth them trying this effort they need additional outside support. The model is sell to a customer who funds it. Otherwise it doesn't work for them.
I do not know what their current situation is, but I suspect Ginetta are not a cash rich firm (2017 accounts show £154k in cash). Simply bank rolling the team may well not be an option. Even if it is an option Ginetta is probably wise not to. They went into this with a customer/partner for a sensible reason. They should not risk their company and 70+ employees for this. They haven't been paid recently, so are already down, and could well have the view they don't want to throw good money after bad.
We all want to see these cars, but to stop themselves being a joke I suspect it may well be the right thing to not directly support this programme with more cash.
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Yep, the reality of motorsport. Ginetta's approach to the situation has been measured, and patient, they had already cut their customer a substantial amount of slack, reading between the lines. All very sad for those involved, and for us, the fans, but business is business.
It has not been a great weekend for the race debut of the P1 privateers, Rebellion aside.