Recession Hits F1 Sponsors - ING feels the Heat

Well, with each New Year we have new challenges, new circuits and new drivers participating in the Formula One racing event. A car racing event keenly followed by worldwide fans and media with big shot automobile makers calling shots, you can very well imagine the excitement and thrill ….the hype generated is tremendous and extraordinary.

Economic slowdown and recession has finally affected the car racing world. Recently we have ING, Renault title sponsor announcing its withdrawal from the Formula One races altogether soon after the 2009 season. The reason citied being a cost cutting initiative embarked upon by ING. There is no doubt about formula1 games being the main source of revenue generation and creating brand awareness at a global level of which ING has truly benefited by it.

If one goes by figures, ING stands to most benefits as its brand awareness has shot by almost 16% but yet it has gone ahead in announcing a 40% reduction in total spending on F1, despite it stand to gain both financially and brand awareness considerably as 2009 has just began and the races have still to take place. They will held at Melbourne between March 27 - March 29 i.e. the ING Australian Grand Prix, Melbourne

Meanwhile a buzz on the Renault side stating a likelihood of cutting down at least 60 jobs, especially those in the test and aerodynamics team …the reason citied as “Change in the Formula One Regulations”. As the decision taking process is underway, uncertainties loom over the teams, sponsors and even the drivers about what the future holds for them.

These happenings do reveal precautionary measures being opted by not only Renault but also ING ….as they are digesting the grim economic conditions and in a way laying down a grey future in the automobile racing world. Which companies – automobiles as well as the sponsors follow suit has yet to be seen in the near future or as the races draw to an end…? Stay tuned to Sports Fuzz to get the latest formula1 news.

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