KEY POINTS:
The A1 Grand Prix World Cup of Motorsport series is facing a stiff challenge to straighten out its financial affairs, caused by the current global economic climate.
But word circulating that the series may well come to a screeching halt soon is premature, New Zealand motor racing officials
say.
New Zealand hosts a round of the series in January and A1GP New Zealand chief executive Gary Dawson said yesterday he had yet to hear from series bosses whether he will have their financial support to run it.
Sales of tickets or hospitality could not start until then and he needed to hear from A1GP bosses in the next 10 days so marketing could begin.
Although he remains confident the event will go ahead, Dawson does not want to be in a situation where the event goes to market and then it gets cancelled.
London-based hedge fund managers RAB Capital plc, who own 52 per cent of the series, apparently have yet to commit for another season which will run new cars powered by Ferrari engines.
But in an effort to improve its financial situation, A1GP has employed corporate consulting and marketing services firm, Octagon Worldwide, to provide commercial advice.
A1 New Zealand team spokesman Hamish Miller said it was a little premature to predict A1's demise.
"A1 were always a little ambitious in terms of their build programme for the new Ferrari car for this season," Miller said. "They gave themselves 11 months to manufacture 25 new cars and in anyone's language, that's ambitious and I think it has caught them short."
Being unable to produce the cars required led to the cancellation of the proposed first round this month at Mugello, Italy, where it had hoped to cash in on the Ferrari connection.
"But the people behind A1 won't let it slip quietly - they will do everything to ensure season four is a success and that it will become a valuable asset in the future," Miller added.
Respected motor racing commentator Bob McMurray agreed.
"A1GP is not in trouble - they are just having a reorganisation," said McMurray, chief executive when the New Zealand A1 team was founded by Auckland businessman Colin Giltrap in 2005. "In terms of cash to get the thing under way [for a fourth season], it's just a hold-up because of the international financial situation.
"I don't think you can say they are in trouble, I simply think they are being forced, as Formula One is, as almost every other major corporation is, into reorganising how they go about things."
McMurray said to get 25 new cars with new engines built in 11 months was a tough task, considering Formula One teams, with all their resources, needed a year to produce three of six new cars every season.
The first round is on October 4-5 at Zandvoort in Holland. The series then moves to Chengdu (China), Sepang (Malaysia), Taupo, Jakarta (Indonesia), Gauteng (South Africa), Mexico, Algarve (Portugal) and Brands Hatch (England).
An eighth round race slotted between Mexico and Portugal has yet to be confirmed.
- NZPA
