These F1 cars are truly engineering marvels. Years of knowledge accumulated to craft these to perfection. This is why, today, for a new company it is so difficult to enter this business. Money isn’t the only factor. This requires years of knowledge and persistence. Let’s talk about the Business Model. How does the financial aspect work? 2 types of companies are involved in Formula 1 racing. The Constructor Companies that make cars. And the Engine Manufacturer Companies that make engines.
Presently, there are about 10 constructor companies, namely Alpha Romeo, Alphatauri, Alpine, Astin Martin, Ferrari, Haas, McLaren, Mercedes, Red Bull, and Williams.
But only 4 companies manufacture engines. Ferrari, Mercedes, Renault, and Honda. Ferrari’s team is the most successful team in the history of Formula 1. They have won 16 constructor titles and 15 driver titles. A point to note here is that in a Formula 1 Championship, there’s a winning driver and a winning constructor. Each team has 2 drivers.
A team can be a constructor champion by taking into account the performance of both drivers. But a driver championship can be won when a driver gets the most points at an individual level. Since the make of the car plays such an important role, some people argue that more than the skills of the driver, the construction of the car is more important for winning a race.
