FORMULA1

Forex trading characteristics

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There is no unified or centrally cleared market for the majority of FX trades, and there is very little cross-border regulation. Due to the over-the-counter (OTC) nature of currency markets, there are rather a number of interconnected marketplaces, where different currencies instruments are traded. This implies that there is not a single exchange rate but rather a number of different rates (prices), depending on what bank or market maker is trading, and where it is. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs instantaneously. Due to London's dominance in the market, a particular currency's quoted price is usually the London market price. A joint venture of the Chicago Mercantile Exchange and Reuters, called Fxmarketspace opened in 2007 and aspired but failed to the role of a central market clearing mechanism.

The main trading center is London, but New York, Tokyo, Hong Kong and Singapore are all important centers as well. Banks throughout the world participate. Currency trading happens continuously throughout the day; as the Asian trading session ends, the European session begins, followed by the North American session and then back to the Asian session, excluding weekends.

Fluctuations in exchange rates are usually caused by actual monetary flows as well as by expectations of changes in monetary flows caused by changes in gross domestic product (GDP) growth, inflation (purchasing power parity theory), interest rates (interest rate parity, Domestic Fisher effect, International Fisher effect), budget and trade deficits or surpluses, large cross-border M&A deals and other macroeconomic conditions. Major news is released publicly, often on scheduled dates, so many people have access to the same news at the same time. However, the large banks have an important advantage; they can see their customers' order flow.

Currencies are traded against one another. Each pair of currencies thus constitutes an individual product and is traditionally noted XXXYYY or YYY/XXX, where YYY is the ISO 4217 international three-letter code of the currency into which the price of one unit of XXX is expressed (called base currency). For instance, EURUSD or USD/EUR is the price of the euro expressed in US dollars, as in 1 euro = 1.5465 dollar. Out of convention, the first currency in the pair, the "base" currency, was the stronger currency at the creation of the pair. The second currency, counter currency or "term" currency, was the weaker currency at the creation of the pair. Currencies are occasionally incorrectly quoted with the pairs inverted e.g. EUR/USD but this is incorrect. The "/" acts the same as the divide mathematical operator and derives the actual exchange rate. e.g. an amount of $140,000 equates to €100,000. $140,000/€100,000 = $/€ = USD/EUR = a rate of 1.4 hence EURUSD or USD/EUR. See Exchange_rate

The factors affecting XXX will affect both XXXYYY and XXXZZZ. This causes positive currency correlation between XXXYYY and XXXZZZ.

On the spot market, according to the BIS study, the most heavily traded products were:

EURUSD: 27%
USDJPY: 13%
GBPUSD (also called cable): 12%

and the US currency was involved in 86.3% of transactions, followed by the euro (37.0%), the yen (17.0%), and sterling (15.0%) (see table). Volume percentages for all individual currencies should add up to 200%, as each transaction involves two currencies.

Trading in the euro has grown considerably since the currency's creation in January 1999, and how long the foreign exchange market will remain dollar-centered is open to debate. Until recently, trading the euro versus a non-European currency ZZZ would have usually involved two trades: EURUSD and USDZZZ. The exception to this is EURJPY, which is an established traded currency pair in the interbank spot market. As the dollar's value has eroded during 2008, interest in using the euro as reference currency for prices in commodities (such as oil), as well as a larger component of foreign reserves by banks, has increased dramatically. Transactions in the currencies of commodity-producing countries, such as AUD, NZD, CAD, have also increased.

Forex retail foreign exchange brokers

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Retail traders (individuals) are an explosively growing part of this market, both in size and importance. Currently, they participate indirectly through brokers or banks. Retail brokers, while largely controlled and regulated in the USA by the CFTC and NFA have in the past been subjected to periodic foreign exchange scams. To deal with the issue, the NFA and CFTC began (as of 2009) imposing stricter requirements, particularly in relation to the amount of Net Capitalization required of its members. As a result many of the smaller, and perhaps questionable brokers are now gone.

There are two main types of retail FX brokers offering the opportunity for speculative currency trading: Retail brokers who employ the "Agency Broker" model and Market-Makers who employ the "Broker as principal or specialist" model. "Agency Brokers" serve as 'your representative' in the broader FX market, by seeking the best prices for your orders, and then typically pass your orders through to some other market-maker, bank or dealer, after applying a small mark-up. Market-Makers, by contrast, typically play the role of 'final resting stop' for your orders by choosing to simply fill them immediately and then manage the resulting risk themselves. No one model is better than the other, and both have various benefits, advantages and drawbacks.

Nonetheless, it is not widely understood that some retail brokers (market makers) typically trade 'against' their clients (via the broker as "principal" model rather than the "agency" broker model) and frequently take the other side of their customers' trades. This may sometimes create a potential conflict of interest and give rise to some of the unpleasant trade-execution experiences some traders & customers have had. A move toward NDD (No Dealing Desk) and STP (Straight Through Processing) has helped to resolve some of these concerns and restore trader confidence, but cautious optimism is still advised.

The earliest Retail FX brokers were CMC Markets, SAXO Bank (Formerly MIDAS), FXCM (formerly Shalish Capital Markets) GFT (Global Forex Trading) MG Forex (AKA "Money Garden"), eForex.com, and Matchbook FX, which was notable because it was the 1st and only FX broker that pursued a user-price driven ECN model, rather than a Dealer/Market Maker model.

Forex hedge funds as speculators

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About 70% to 90% of the foreign exchange transactions are speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency. Hedge funds have gained a reputation for aggressive currency speculation since 1996. They control billions of dollars of equity and may borrow billions more, and thus may overwhelm intervention by central banks to support almost any currency, if the economic fundamentals are in the hedge funds' favor.

Forex central banks

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National central banks play an important role in the foreign exchange markets. They try to control the money supply, inflation, and/or interest rates and often have official or unofficial target rates for their currencies. They can use their often substantial foreign exchange reserves to stabilize the market. Milton Friedman argued that the best stabilization strategy would be for central banks to buy when the exchange rate is too low, and to sell when the rate is too high—that is, to trade for a profit based on their more precise information. Nevertheless, the effectiveness of central bank "stabilizing speculation" is doubtful because central banks do not go bankrupt if they make large losses, like other traders would, and there is no convincing evidence that they do make a profit trading.

The mere expectation or rumor of central bank intervention might be enough to stabilize a currency, but aggressive intervention might be used several times each year in countries with a dirty float currency regime. Central banks do not always achieve their objectives. The combined resources of the market can easily overwhelm any central bank. Several scenarios of this nature were seen in the 1992–93 ERM collapse, and in more recent times in Southeast Asia.

Forex commercial companies

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An important part of this market comes from the financial activities of companies seeking foreign exchange to pay for goods or services. Commercial companies often trade fairly small amounts compared to those of banks or speculators, and their trades often have little short term impact on market rates. Nevertheless, trade flows are an important factor in the long-term direction of a currency's exchange rate. Some multinational companies can have an unpredictable impact when very large positions are covered due to exposures that are not widely known by other market participants.

Forex banks

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The interbank market caters for both the majority of commercial turnover and large amounts of speculative trading every day. A large bank may trade billions of dollars daily. Some of this trading is undertaken on behalf of customers, but much is conducted by proprietary desks, trading for the bank's own account. Until recently, foreign exchange brokers did large amounts of business, facilitating interbank trading and matching anonymous counterparts for small fees. Today, however, much of this business has moved on to more efficient electronic systems. The broker squawk box lets traders listen in on ongoing interbank trading and is heard in most trading rooms, but turnover is noticeably smaller than just a few years ago.

Forex market participants

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Unlike a stock market, the foreign exchange market is divided into levels of access. At the top is the inter-bank market, which is made up of the largest commercial banks and securities dealers. Within the inter-bank market, spreads, which are the difference between the bid and ask prices, are razor sharp and usually unavailable, and not known to players outside the inner circle. The difference between the bid and ask prices widens (from 0-1 pip to 1-2 pips for some currencies such as the EUR). This is due to volume. If a trader can guarantee large numbers of transactions for large amounts, they can demand a smaller difference between the bid and ask price, which is referred to as a better spread. The levels of access that make up the foreign exchange market are determined by the size of the "line" (the amount of money with which they are trading). The top-tier inter-bank market accounts for 53% of all transactions. After that there are usually smaller banks, followed by large multi-national corporations (which need to hedge risk and pay employees in different countries), large hedge funds, and even some of the retail FX-metal market makers. According to Galati and Melvin, “Pension funds, insurance companies, mutual funds, and other institutional investors have played an increasingly important role in financial markets in general, and in FX markets in particular, since the early 2000s.” (2004) In addition, he notes, “Hedge funds have grown markedly over the 2001–2004 period in terms of both number and overall size” Central banks also participate in the foreign exchange market to align currencies to their economic needs.

Forex market size and liquidity

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The foreign exchange market is the largest and most liquid financial market in the world. Traders include large banks, central banks, currency speculators, corporations, governments, and other financial institutions. The average daily volume in the global foreign exchange and related markets is continuously growing. Daily turnover was reported to be over US$3.2 trillion in April 2007 by the Bank for International Settlements. Since then, the market has continued to grow. According to Euromoney's annual FX Poll, volumes grew a further 41% between 2007 and 2008.

Of the $3.98 trillion daily global turnover, trading in London accounted for around $1.36 trillion, or 34.1% of the total, making London by far the global center for foreign exchange. In second and third places respectively, trading in New York accounted for 16.6%, and Tokyo accounted for 6.0%. In addition to "traditional" turnover, $2.1 trillion was traded in derivatives.

Exchange-traded FX futures contracts were introduced in 1972 at the Chicago Mercantile Exchange and are actively traded relative to most other futures contracts.

Several other developed countries also permit the trading of FX derivative products (like currency futures and options on currency futures) on their exchanges. All these developed countries already have fully convertible capital accounts. Most emerging countries do not permit FX derivative products on their exchanges in view of prevalent controls on the capital accounts. However, a few select emerging countries (e.g., Korea, South Africa, India) have already successfully experimented with the currency futures exchanges, despite having some controls on the capital account.

FX futures volume has grown rapidly in recent years, and accounts for about 7% of the total foreign exchange market volume, according to The Wall Street Journal Europe (5/5/06, p. 20).

Foreign exchange trading increased by 38% between April 2005 and April 2006 and has more than doubled since 2001. This is largely due to the growing importance of foreign exchange as an asset class and an increase in fund management assets, particularly of hedge funds and pension funds. The diverse selection of execution venues have made it easier for retail traders to trade in the foreign exchange market. In 2006, retail traders constituted over 2% of the whole FX market volumes with an average daily trade volume of over US$50-60 billion (see retail trading platforms). Because foreign exchange is an OTC market where brokers/dealers negotiate directly with one another, there is no central exchange or clearing house. The biggest geographic trading centre is the UK, primarily London, which according to IFSL estimates has increased its share of global turnover in traditional transactions from 31.3% in April 2004 to 34.1% in April 2007. The ten most active traders account for almost 80% of trading volume, according to the 2008 Euromoney FX survey. These large international banks continually provide the market with both bid (buy) and ask (sell) prices. The bid/ask spread is the difference between the price at which a bank or market maker will sell ("ask", or "offer") and the price at which a market taker will buy ("bid") from a wholesale or retail customer. The customer will buy from the market-maker at the higher "ask" price, and will sell at the lower "bid" price, thus giving up the "spread" as the cost of completing the trade. This spread is minimal for actively traded pairs of currencies, usually 0–3 pips. For example, the bid/ask quote of EUR/USD might be 1.2200/1.2203 on a retail broker. Minimum trading size for most deals is usually 100,000 units of base currency, which is a standard "lot".

These spreads might not apply to retail customers at banks, which will routinely mark up the difference to say 1.2100/1.2300 for transfers, or say 1.2000/1.2400 for banknotes or travelers' checks. Spot prices at market makers vary, but on EUR/USD are usually no more than 3 pips wide (i.e., 0.0003). Competition is greatly increased with larger transactions, and pip spreads shrink on the major pairs to as little as 1 to 2 pips.

Forex

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The foreign exchange market (currency, forex, or FX) trades currencies. It lets banks and other institutions easily buy and sell currencies.

The purpose of the foreign exchange market is to help international trade and investment. A foreign exchange market helps businesses convert one currency to another. For example, it permits a U.S. business to import European goods and pay Euros, even though the business's income is in U.S. dollars.

In a typical foreign exchange transaction a party purchases a quantity of one currency by paying a quantity of another currency. The modern foreign exchange market started forming during the 1970s when countries gradually switched to floating exchange rates from the previous exchange rate regime, which remained fixed as per the Bretton Woods system.

The foreign exchange market is unique because of

its trading volumes,
the extreme liquidity of the market,
its geographical dispersion,
its long trading hours: 24 hours a day except on weekends (from 20:15 UTC on Sunday until 22:00 UTC Friday),
the variety of factors that affect exchange rates.
the low margins of profit compared with other markets of fixed income (but profits can be high due to very large trading volumes)
the use of leverage

As such, it has been referred to as the market closest to the ideal perfect competition, notwithstanding market manipulation by central banks.^{[citation needed]} According to the Bank for International Settlements,^[2] average daily turnover in global foreign exchange markets is estimated at $3.98 trillion. Trading in the world's main financial markets accounted for $3.21 trillion of this. This approximately $3.21 trillion in main foreign exchange market turnover was broken down as follows:

$1.005 trillion in spot transactions
$362 billion in outright forwards
$1.714 trillion in foreign exchange swaps
$129 billion estimated gaps in reporting

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Grand Prix motor racing

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Grand Prix motor racing has its roots in organised automobile racing that began in France as far back as 1894. It quickly evolved from a simple road race from one town to the next, to endurance tests for car and driver. Innovation and the drive of competition soon saw speeds exceeding 100 miles per hour (160 km/h), but because the races were held on open roads there were frequent accidents with the resulting fatalities of both drivers and spectators.

Grand Prix motor racing eventually evolved into formula racing, and Formula One can be seen as its direct descendant. Each event of the Formula One World Championships is still called a Grand Prix.

Other categories

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Autocross
Autograss
Banger racing
Board track racing
Demolition derby
Dirt speedway racing
Dirt track racing
Drifting
Folkrace
High Performance Drivers Education
Hillclimbing
Ice racing
Legends car racing
Midget car racing
Monster truck
Pickup truck racing
Rallycross
Road racing
Short track motor racing
Slalom
Sprint car racing
Sprinting
Street racing
Time Attack
Truck racing
Wheelstand Competition

Historical racing

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As modern motor racing is centered on modern technology with a lots of corporate sponsors and politics involved, historical racing tends to be the opposite. Because it is based on a particular era it is more hobbyist oriented, reducing corporate sponsorship and politics. Events are regulated to only allow cars of a certain era to participate. The only modern equipment used is related to safety and timing. A historical event can be of various different motorsport disciplines. Notably some of the most famous events of them all are the Goodwood Festival of Speed and Goodwood Revival in Britain and Monterey Historic in the United States. Championships range from "grass root" Austin Seven racing to the FIA Thoroughbred Grand Prix Championship for classic Formula One chassis.

While there are several professional teams and drivers in historical racing, this branch of auto sport tends to be contested by wealthy car owners and is thus more amateur and laid back in its approach.

Kart racing

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Although often seen as the entry point for serious racers into the sport, kart racing, or karting, can be an economical way for amateurs to try racing and is also a fully fledged international sport in its own right. World-famous F1-drivers like Michael Schumacher or Fernando Alonso and most of the typical starting grid of a modern Grand Prix took up the sport at around the age of eight, with some testing from age three. Several former motorcycle champions have also taken up the sport, notably Wayne Rainey, who was paralysed in a racing accident and now races a hand-controlled kart. As one of the cheapest ways to go racing, karting is seeing its popularity grow worldwide.

Go-karts, or just "karts" - seem very distant from normal road cars, with diminutive frames and wheels, but a small engine combined with very light weight make for a quick machine.

Off-road racing

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In off-road racing, various classes of specially modified vehicles, including cars, compete in races through off-road environments. In North America these races often take place in the desert, such as the famous Baja 1000. In Europe, "offroad" refers to events such as autocross or rallycross, while desert races and rally-raids such as the Paris-Dakar, Master Rallye or European "bajas" are called "cross-country rallies." many people have died while trying to win the world cup.

Sports car racing

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In sports car racing, production versions of sports cars and/or grand tourers, and sports prototype cars compete within their respective classes on closed circuits. The races are often conducted over long distances, at least 1000 km, and cars are driven by teams of two or three drivers (and sometimes more in the US), switching every few hours. Due to the performance difference between production-based sports cars and purpose-built sports prototypes, one race usually involves several racing classes. In the US the American Le Mans Series (ALMS) was organized in 1999, featuring GT1, GT2, and two prototype classes, LMP1 (Le Mans Prototype 1) and LMP2. Manufacturers such as Audi and Acura/Honda field or support entries in the Prototype class. Another series based on Le Mans began in 2004, the Le Mans Endurance Series, which included four 1000 km races at tracks in Europe. A competing body, Grand-Am, which began in 2000, sanctions its own endurance series the Rolex Sports Car Series.

Famous sports car races include the 24 Hours of Le Mans, the 24 Hours of Daytona, 24 Hours of Spa-Franchorchamps, the 12 Hours of Sebring, and the 1,000-mile (1,600 km) Petit Le Mans at Road Atlanta.

Drag racing

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Launching, a top fuel dragster will accelerate at 4.5 g (44 m/s²), and when braking parachutes are deployed the deceleration is 4 g (39 m/s²), more than the Space Shuttle experiences. A top fuel car can be heard over 8 miles (13 km) away and generates a reading of 1.5 to 2 on the Richter scale.

Drag racing is two cars head-to-head, the winner proceeding to the next round. Professional classes are all first to the finish line wins. Sportsman racing is handicapped (slower car getting a head start) using an index (a lowest e.t. allowed), and cars running under (quicker than) their index "break out" and lose. The slowest cars, bracket racers, are also handicapped, but rather than an index, they use a "dial-in". Bracket racing has been viewed as the main cause of the loss of public interest in drag racing. People don't understand why the slower car wins or why somebody needs to hit the brakes to avoid going too fast. Many local tracks have also complained that bracket racers will also go out of their way to spend as little as possible while at the track by bringing their own food, beverages, fuel and supplies thus, making it more difficult for tracks to make money on these events. This causes gate prices to rise and tracks losing interest in having such events.

Targa Racing (Targa Rally)

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Targa is a tarmac-based road rally which is run all around the world. This began with the Targa Florio. There are many races including Targa Tasmania held on the island state of Tasmania, Australia, run annually since 1992. The event takes its name from the Targa Florio, a former motoring event held on the island of Sicily. The competition concept is drawn directly from the best features of the Mille Miglia, the Coupe des Alpes and the Tour de Corse. Other events around the world include the Targa Newfoundland based in Canada, Targa West based in Western Australia, Targa New Zealand and other smaller events.

Rallying

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Rallying, or rally racing, involves two classes of car. The modified Group A, but road legal, production-based cars and the Group N Production cars compete on (closed) public roads or off-road areas run on a point-to-point format where participants and their co-drivers "rally" to a set of points, leaving in regular intervals from start points. A rally is typically conducted over a number of "special stages" of any terrain, which entrants are often allowed to scout beforehand at reduced speeds compiling detailed shorthand descriptions of the track or road as they go. These detailed descriptions are known as "pace notes." During the actual rally, the co-driver reads the pace notes aloud (using an in-helmet intercom system) to the driver, enabling them to complete each stage as quickly as possible. Competition is based on lowest total elapsed time over the course of an event's special stages, including penalties.

The top series is the World Rally Championship (WRC), but there also regional championships and many countries have their own national championships. Some famous rallies include the Monte Carlo Rally, Rally Argentina, Rally Finland and Rally GB. Another famous event (actually best described as a "rally raid") is the Paris-Dakar Rally. There are also many smaller, club level, categories of rallies which are popular with amateurs, making up the "grass roots" of motor sports.

Stock car racing

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Stock car racing, is hugely popular in the USA. It is the most popular form of racing in the United States

Usually raced on oval tracks stock cars may resemble production cars but are in fact purpose-built racing machines which are built to tight specifications.

The largest stock car racing governing body is NASCAR. NASCAR's premier series is the Sprint Cup Series, its most famous races being the Daytona 500 and the Brickyard 400. NASCAR also runs several feeder series. The Nationwide Series, and Camping World Truck Series (a pickup truck racing series) conduct races across the entire continental United States. The NASCAR Canadian Tire Series conducts races across Canada and the NASCAR Corona Series conducts races across Mexico. NASCAR also governs several smaller regional series.

NASCAR also governs the Whelen Modified Tour. Modified cars are best described as hybrids of stock cars and open-wheel cars. They are heavily altered from stock, with powerful engines, large tires, tubular chassis and light bodies. The Whelen Modified tour is NASCAR's oldest series.

There are also other stock car governing bodies, such as Automobile Racing Club of America and United Speed Alliance Racing.

In the UK, British Stock car racing is also referred to as "Short Circuit Racing". This takes place on shale or tarmac tracks - usually around 1/4 mile in length. The governing bodies for the sport are the Oval Racing Council (ORC) and BriSCA. Both bodies are made up of individual stadium promoters. There are around 35 tracks in the UK and upwards of 7000 active drivers. The sport is split into three basic "divisions" - distinguished by the rules regarding car-contact during racing.

Full Contact formulas include Bangers, Bombers and Rookie Bangers - and racing features Demolitions Derbies, Figure of Eight racing and Oval Racing

Semi Contact Formulas include BriSCA F1, F2 and Superstox - where bumpers are used tactically.

Non-contact formulas include National Hot Rods, Stock Rods and Lightning Rods.

UK Stock car racing started in the 1950s and grew rapidly through the 60s and 70s.

One-make racing

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One-make, or single marque, championships often employ production-based cars from a single manufacturer or even a single model from a manufacturer's range. There are numerous notable one-make formulae from various countries and regions, some of which – such as the Porsche Supercup and, previously, IROC – have fostered many distinct national championships. Single marque series are often found at club level, to which the production-based cars, limited modifications, and close parity in performance are very well suited. Some of the better-known single-make series are the SEAT Cupra Championship, John Cooper Mini Challenge, and Clio Cup, and at a more modest budget, Ginettas, Caterhams, BMWs, and MX5s. There are also single-chassis single seater formulae, such as Formula Ford, Formula Saab, Formula BMW, and defunct Formula Vee, usually as "feeder" series for "senior" race formula (in the fashion of farm teams)

Production car racing

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Production car racing or known in the US as showroom stock, is an economical and rules restricted version of touring car racing, mainly to restrict costs.

Many series follow the Group N regulation with a few exceptions. There are several different series that are run all over the world, most notably, Japan's Super Taikyu and IMSA's Firehawk Series which ran between the 1980s to 1990s all over the United States.

Touring car racing

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Touring car racing is a style of road racing that is run with production derived race cars. It often features exciting, full-contact racing due to the small speed differentials and large grids.

The major touring car championships conducted worldwide are the V8 Supercars, British Touring Car Championship, Deutsche Tourenwagen Masters, and the World Touring Car Championship. The European Touring Cup is a one day event open to Super 2000 specification touring cars from Europe's many national championships. Another European series is the FIA GT Championship, which features the Spa 24 Hours on their schedule.

The Sports Car Club of America's SPEED World Challenge Touring Car and GT championships are dominant in North America. America's historic Trans-Am Series is undergoing a period of transition, but is still the longest-running road racing series in the U.S. The National Auto Sport Association also provides a venue for amateurs to compete in home-built factory derived vehicles on various local circuits.

Single-seater racing

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In single-seater (open-wheel) the wheels are not covered, and the cars often have aerofoil wings front and rear to produce downforce and enhance adhesion to the track. In Europe and Asia, open wheeled racing is commonly referred to as "Formula", with appropriate hierarchical suffixes. In North America, the "Formula" terminology is not followed (with the exception of F1). The sport is usually arranged to follow an "international" format (such as F1), a "regional" format (such as the Formula 3 Euro Series), or a "domestic", or country-specific format (such as the German Formula 3 championship, or the British Formula Ford).The best-known variety of single-seater racing, Formula One, involves an annual World Championship for drivers and constructors In North America, the cars used in the National Championship (currently the IndyCar Series, and previously CART) have traditionally been similar though less sophisticated than F1 cars, with more restrictions on technology aimed at controlling costs.

Other international single-seater racing series are the A1 Grand Prix (unofficially often referred to as the "world cup of motorsport"), and the GP2 (formerly known as Formula 3000 and Formula Two). Regional series include Formula Nippon and Formula V6 Asia (specifically in Asia), Formula Renault 3.5 (also known as the World Series by Renault, succession series of World Series by Nissan), Formula Three, Formula Palmer Audi and Formula Atlantic. In 2009, the FIA Formula Two Championship brought about the revival of the F2 series. Domestic, or country-specific series include Formula Three, Formula Renault, Formula Ford with the leading introductory series being Formula BMW.

Single seater racing is not limited merely to professional teams and drivers. There is a large amateur 'club racing' scene catering for those who want to race single seaters against similar people all over the world. In the UK the major club series are the Monoposto Racing Club, BRSCC F3 (Formerly ClubF3, formerly ARP F3), Formula Vee and Club Formula Ford. Each series caters for a section of the 'market', with some primarily providing low cost racing whilst others aim for an authentic experience using the same regulations as the professional series (BRSCC F3).

There are other categories of single-seater racing, including kart racing, which employs a small, low-cost machine on small tracks. Many of the current top drivers began their careers in karts. Formula Ford once represented a popular first open-wheel category for up-and-coming drivers stepping up from karts and now the Formula BMW series is the preferred option as it has introduced an aero package and slicks, allowing the junior drivers to gain experience in a race car with dynamics closer F1. The Star Mazda Series is another entry level series.

Students at colleges and universities can also take part in single seater racing through the Formula SAE competition, which involves designing and building a single seater car in a multidisciplinary team, and racing it at the competition. This also develops other soft skills such as teamwork whilst promoting motorsport and engineering.

In 2006, producer Todd Baker was responsible for creating the world's first all-female Formula racing team. The group was an assemblage of drivers from different racing disciplines, and formed for an MTV reality pilot which was shot at Mazda Raceway Laguna Seca.

In December, 2005 the FIA gave approval to Superleague Formula racing which debuted in 2008 whereby the racing teams are owned and run by prominent sports clubs such as AC Milan and FC Porto.

Corporate restructuring

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After gaining market share in the late 1990s and making enormous profits General Motors stock soared to over $80 a share. However, in 2000, twelve successive interest rate hikes by the Federal Reserve led to a severe stock market decline following the September 11, 2001 attacks, caused a pension and benefit funds crisis at General Motors and many other American companies. General Motors' rising retiree health care costs and Other Post Employment Benefit (OPEB) fund deficit prompted the company to enact a broad restructuring plan. Although GM had already taken action to fully fund its pension plan, its OPEB fund became an issue for its corporate bond ratings. GM had expressed its disagreement with the bond ratings; moreover, GM's benefit funds were performing at higher than expected rates of return. Then, following a $10.6 billion loss in 2005, GM acted quickly to implement its restructuring plan. For the first quarter of 2006 GM earned $400 million, signaling a turnaround had already begun even though many aspects of the restructuring plan had not yet taken effect. Although retiree health care costs remain a significant issue, General Motors' investment strategy has generated a $17.1 billion surplus in 2007 in its $101 billion U.S. pension fund portfolio, a $35 billion reversal from its $17.8 billion of underfunding.

In February 2005, GM successfully bought itself out of a put option with Fiat for $2 billion USD (€1.55 billion). In 2000, GM had sold a 6% stake to Fiat in return for a 20% share in the Italian automaker. As part of the deal, GM granted Fiat a put option which, if exercised between January 2004 and July 2009, could have forced GM to buy Fiat. GM had agreed to the put option at the time, perhaps to keep it from being acquired by another automaker such as Daimler AG competing with GM's Opel and Vauxhall marques. The relationship suffered, and Fiat had failed to improve. In 2003, Fiat recapitalized, reducing GM's stake to 10%.

In February 2006, GM slashed its annual dividend from 2.00 to $1.00 per share. The reduction saved $565 million a year.

In March 2006, GM divested 92.36 million shares (reducing their stake from 20% to 3%) of Japanese manufacturer Suzuki, in order to raise $2.3 billion. GM originally invested in Suzuki in the early 1980s.

On March 23, 2006, a private equity consortium including Kohlberg Kravis Roberts, Goldman Sachs Capital, and Five Mile Capital purchased $8.8 billion, or 78% of GMAC's commercial mortgage arm. The new entity, in which GMAC will own a 21% stake, will be known as Capmark Financial Group.

On April 3, 2006, GM announced that it would sell 51% of GMAC as a whole to a consortium led by Cerberus Capital Management, raising $14 billion over three years. Investors also include Citigroup's private equity arm and Aozora Bank of Japan. The group will pay GM $7.4 billion in cash at closing. GM will retain approximately $20 billion in automobile financing worth an estimated $4 billion over three years.

GM sold its remaining 8% stake in Isuzu (which had peaked at 49% just a few years earlier) on April 11, 2006, to raise an additional $300 million. 12,600 workers from Delphi, a key supplier to GM, agreed to buyouts and an early retirement plan offered by GM in order to avoid a strike, after a judge agreed to cancel Delphi's union contracts. 5,000 Delphi workers were allowed to flow to GM. On June 28, 2007, GM agreed to sell its Allison Transmission division to private-equity firms Carlyle Group and Onex for $5.1 billion. The deal will increase GM's liquidity and echoes previous moves to shift its focus towards its core automotive business. The two firms will control seven factories around Indianapolis but GM will retain management of a factory in Baltimore. Former Allison Transmission president Lawrence E. Dewey will be the new CEO of the standalone company.

On February 12, 2008 GM announced its loss of $39 billion, the biggest loss of any U.S. automaker. GM has offered buyouts to all its UAW members.

In March 24, 2008, GM reported a cash position of $24 billion, or $6 billion less than what was on hand September 31, 2007, which is a loss of $1 billion a month. A further quarterly loss of $15.5 billion, the third-biggest in the company's history, was announced on August 1, 2008.

On November 17, 2008, GM announced it would sell its stake in Suzuki Motor Corp. (3.02%) for 22.37 billion yen ($230 million) in order to raise much needed cash to get through the 2008 US economic crisis.

Flexible-fuel vehicles in Brazilian market

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GM's largest overseas subsidiary is General Motors do Brasil, which started producing flexible-fuel vehicles since its inception in the Brazilian market in 2003. Like other Brazilian flex-fuel vehicles, GM's flex fuel cars and light-duty trucks are optimized to run on any mix of E20-E25 gasoline and up to 100% hydrous ethanol fuel (E100). GM launched its first flex fuel in June 2003, the Chevrolet Corsa 1.8 FlexPower, just two months after the first flex car was launched by another Brazilian carmaker

GM do Brasil also introduced the MultiPower engine in August 2004 which was capable of using natural gas (CNG), ethanol and gasoline (E20-E25 blend) as fuel, and it was used in the multifuel Chevrolet Astra 2.0 model 2005, aimed at the local taxi cab market. The Brazilian GM Powertrain unit also developed the EconoFlex technology, used for the first time in the Chevrolet Prisma 1.4, which allows the flex fuel engine to maximize fuel economy and power.

Due to the success and rapid consumer acceptance of the flex versions, GM sold 192,613 flex vehicles and 135,636 gasoline-powered automobiles in 2005, jumping to 501,681 flex-fuel vehicles while only 949 cars and 6,834 light trucks powered by gasoline were sold in 2007, and reaching new car sales of 535.454 flex fuels in 2008, representing 97 percent of all cars and light duty trucks sold in that year.

Flexible-fuel vehicles in North American market

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GM produces several flexible-fuel vehicles that can operate on E85 ethanol fuel or gasoline, or any blend of both. Since 2006 GM started featuring a bright yellow gas cap to remind drivers of the E85 capabilities, and also using badging with the text "Flexfuel/E85 Ethanol" to clearly mark the car as an E85 FFV.

GM is the North American leader in E85 flex fuel vehicles, with over 3 million FlexFuel vehicles on the road in the U.S. As of 2009, GM offers 18 ethanol-enabled FlexFuel cars and trucks in the US, and produce more than one million new FlexFuel vehicles. GM's goal is to have half of their annual vehicle production be E85 or biodiesel capable by 2012.

Despite the significant amount of flex fuel vehicles sold in the US and Canada, the percentage of users actually using ethanol has been very low as many owners are not aware they owned an E85 flex or not enough E85 fueling stations are available nearby, except for the Corn Belt states, where there is a great concentration of E85 stations, as most corn ethanol is produced there. A 2005 survey found that 68% of American flex-fuel car owners were not aware they owned an E85 flex. Several critics have argued that GM and the other American automakers have been producing E85 flex models motivated by a loophole in the CAFE (Corporate Average Fuel Economy) requirements, that allows for a fuel economy credit for every flex-fuel vehicle sold, whether or not in practice these vehicles are fueled with E85. This loophole might have allowed the car industry to meet the CAFE targets in fuel economy just by spending between USD 100 to USD 200 that it cost to turn a conventional vehicle into a flex-fuel, without investing in new technology to improve fuel economy, and saving them the potential fines for not achieving that standard in a given model year.

All-electric vehicles

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The process of obtaining the EV1, GM's first electric vehicle, was difficult. The vehicle could not be purchased outright. Instead, General Motors offered a closed-end lease for three years, with no renewal or residual purchase options. The EV1 was only available from specialist Saturn dealerships, and only in California and Arizona. Before reviewing leasing options, a potential lessee would be taken through a 'pre-qualification' process in order to learn how the EV1 was different from other vehicles. Next came a waiting list with no scheduled delivery date.

In June 2006 the documentary Who Killed the Electric Car? was released, criticizing among others, GM for being responsible for the demise of the EV1. Several weeks before the debut of the movie, the Smithsonian Institution announced that its EV1 display was being permanently removed and the EV1 car put into storage. GM is a major financial contributor to the museum, but both parties denied that this fact contributed to the removal of the display.

General Motors has responded to complaints about the scrapping of the EV1 program and they dispute the existence of any conspiracy surrounding its demise. An entry was posted on the GM blog FastLane in 2006 in which GM defended its decision by saying that it was unable to guarantee the vehicles could continue to be maintained in a safe operating state.

GM alleges that during the four years available to the public, only 800 EV1's were released. Over $1 billion was spent on the EV1 program, with a great portion used for consumer incentives and marketing. With a waiting list of 5,000 applicants, only 50 individuals actually were willing to accept a lease on the EV1. Suppliers ceased production of replacement parts due to the low demand for the EV1. This made repairs and continued safety of the vehicles difficult. The EV1 was designed as a developmental vehicle and was never intended for serial production.

GM responded to allegations made in the film through a blog post by Dave Barthmuss, who said "Sadly, despite the substantial investment of money and the enthusiastic fervor of a relatively small number of EV1 drivers — including the filmmaker — the EV1 proved far from a viable commercial success. Barthmuss notes investments in electric vehicle technology since the EV1: Two-Mode Hybrid, plug-in hybrid, and fuel cell vehicle programs. The filmmakers suggested that GM did not immediately channel its technological progress with the EV1 into these projects, and instead let the technology languish while focusing on more immediately profitable enterprises such as SUVs. Contrary to this suggestion, as Barthmuss points out, GM is bullish on hydrogen:

According to GM, not all of the EV1's were destroyed. Many were donated to research institutions and facilities, along with museums. Some are still owned by General Motors themselves, and are kept at their technical design center in Warren, Michigan, and can occasionally be seen on the road within a closed area of the tech center.

On September 16, 2008, as part of its 100th anniversary celebration, GM unveiled the "production" version of the Chevrolet Volt at the GM headquarters in Detroit.

General Motors has announced that it is building a prototype two-seat electric vehicle with Segway. An early prototype of the Personal Urban Mobility and Accessibility vehicle—dubbed Project P.U.M.A. -- will be shown off in New York a day ahead of the press previews for the 2009 New York International Auto Show.

Alternative fuels and electric vehicles

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General Motors is both active in environmental causes and, as a major industrial force, implicated in ecologically harmful activity. The company has long worked on alternative-technology vehicles, and has recently led the industry with ethanol burning flexible-fuel vehicles that can run on either E85 (ethanol) or gasoline. The company was the first to use turbochargers and was an early proponent of V6 engines in the 1960s, but quickly lost interest as the muscle car race took hold. They demonstrated gas turbine vehicles powered by kerosene, an area of interest throughout the industry, but abandoned the alternative engine configuration in view of the 1973 oil crisis. In the 1970s and 1980s, GM pushed the benefits of diesel engines and cylinder deactivation technologies with disastrous results due to poor durability in the Oldsmobile diesels and drivability issues in the Cadillac V8-6-4 variable cylinder engines. In 1987 GM, in conjunction with Aerovironment built the Sunraycer which won the inaugural World Solar Challenge and was a showcase of advanced technology. Much of the technology from Sunraycer found its way into the Impact prototype electric vehicle (also built by Aerovironment) and was the predecessor to the EV1.

GM supported a compromise version of the CAFE standard increase from 27 mpg to 35 mpg, the first such increase in over 20 years.

Auto racing

2009-06-03T00:35:00.000-07:00

General Motors has an extensive history in numerous forms of racing. Vehicles of most, if not all, of GM's brands have been represented in competition, with perhaps Chevrolet being the most prominent. In particular, the Chevrolet Corvette has long been popular and successful in international road racing. GM also is a supplier of racing components, such as engines, transmissions, and electronics equipments.

GM's Oldsmobile Aurora engine platform was successful in the Indy Racing League (IRL) throughout the 1990s, winning many races in the small V-8 class. GM has also done much work in the development of electronics for GM auto racing. An unmodified Aurora V-8 in the Aerotech, captured 47 world records, including the record for speed endurance in the Motorsports Hall of Fame of America. Recently, the Cadillac V-Series has entered motorsports racing. GM has also used many cars in the American racing series NASCAR. Currently the Chevrolet Impala is the only entry in the series but in the past the Pontiac Grand Prix, Buick Regal, Oldsmobile Cutlass, Chevrolet Lumina, Chevrolet Malibu, and the Chevrolet Monte Carlo were also used.

In touring cars (mainly in Europe) Vauxhall is a key player and former champion in the British Touring Car Championship (BTCC) series and competes with a Vauxhall Vectra in Super 2000 spec, although have announced plans to withdraw at the end of 2009. Opel used to participate in the DTM series and also in the 1980s in the World Rally Championship and other Rally Series with Group B Spec Opel Manta's before this category of Rallying was banned. Chevrolet competes with a Chevrolet Cruze in the FIA World Touring Car Championship (WTCC). Tempus Sport and RML also complete with a privately run Lacetti in the BTCC.

In Australia, there is the prestigious V8 Supercar Championship which is battled out by the two main rivals of Holden & Ford. The current Holden Racing Team cars are based on the Holden Commodore and run a 5.0-litre V8-cylinder engine producing 635+ BHP (approx 467 kW Power). These cars have a top speed of 294 km/h (182 mph) and run 0-100 km/h in 3.8 seconds. The Holden Racing Team is Australia's most successful team in Australian Touring Car History. In 2007 the Drivers championship was won by the very closely linked HSV Dealer Team.

Timeline of 2008/2009 decline

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October 10, 2008: GM considered exchanging its remaining 49% stake in GMAC to Cerberus Capital Management for Chrysler LLC, potentially merging two of Detroit's "Big Three" automakers. Acquisition talks involving Chrysler were cancelled, however, before November 7, 2008, as part of a broader response to the increasing urgency of GM's own cash flow problems. That was a result of Chrysler's senior bank debt currently trading at less than 50 cents on the dollar and because Chrysler's other owner – Daimler, formerly DaimlerChrysler – recently revalued its 19.9% Chrysler stake down to zero, which may or may not reflect its value in a potential sale.

December 12, 2008: General Motors stated that it was nearly out of cash, and may not survive past 2009. The U.S. Senate voted and strongly opposed any source of government assistance through a bailout bridge loan (originally worth $14 billion in emergency aid) which was aimed toward helping the struggling Big Three automakers financially, despite strong support from President George W. Bush and President-elect Barack Obama, along with some mild support from the Democratic and Republican political parties.

Prior to the U.S. Senate's announcement, General Motors announced that it had hired several lawyers to discuss the possibility of filing for bankruptcy, with Chapter 11 bankruptcy being one of the options discussed. GM stated that "all options are on the table" for the company. Chrysler LLC, which is owned by Cerberus Capital Management, in a similar financial situation, warned that it, too, was nearly out of cash and might not survive much longer.

December 18, 2008: President Bush announced that an "orderly" bankruptcy was one option being considered for both General Motors and Cerberus-owned Chrysler LLC. Sources said that setting up this type of "orderly" bankruptcy would be complicated because it would not only involve talks with the automakers, but also the unions and other stakeholders would have to be involved.

December 19, 2008: President Bush approved a bailout plan and gave General Motors and Chrysler $13.4 billion in financing from TARP (Troubled Assets Relief Program) funds, as well as $4 billion to be "withdrawn later."

As of February 14, 2009: General Motors was considering filing for Chapter 11 bankruptcy under a plan that would assemble all of their viable assets, including some U.S. brands and international operations, into a new company. Less than a week later, its Saab subsidiary filed for bankruptcy protection in Sweden.

March 5, 2009: GM's independent public accounting firm (Deloitte & Touche) issued a qualified opinion as part of GM's 2008 annual report that stated "[these conditions] raise substantial doubt about its ability to continue as a going concern." A qualified going concern audit letter like this is only issued by the auditors when the company is in extreme financial distress and it is likely that it may file for bankruptcy protection.

March 12, 2009: GM's CFO Ray Young said that it would not need the requested $2B in March noting that the cost-cutting measures are starting to take hold.

March 29, 2009: GM's Chairman and CEO, Rick Wagoner, agreed to immediately resign his position as part of an Obama administration automotive restructuring plan. Wagoner was replaced by Fritz Henderson. In announcing that plan, on March 30, 2009, President Obama stated that both GM and Chrysler may need to use "our bankruptcy code as a mechanism to help them restructure quickly and emerge stronger. He also announced that the warranties on cars made by these companies would be guaranteed by the U.S. Government.

March 31, 2009: President Barack Obama announced that he would give GM 60 additional days to try and restructure their company and prove their viability. If they succeeded, Washington would provide General Motors with additional bridge loans. However, if GM could meet the requirements set by the White House, a prepackaged bankruptcy is probable. President Obama reiterated that GM will be part of the future even if bankruptcy is necessary.

April 22, 2009: GM stated that it will not be able to make their June 1, 2009 debt payment.

April 24, 2009: GM announced that they will be scrapping the Pontiac brand in an effort to invest more money into their major brands (Buick, Cadillac, Chevrolet, and GMC).

May 4, 2009: German Economy Minister Karl-Theodor zu Guttenberg said Fiat (among others) might be interested in the GM European unit.

June 1, 2009: GM filed for Chapter 11 Bankruptcy, the fourth largest filing in the United States history after Lehman Brothers, Washington Mutual, and Worldcom.

GM in the 21st century

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In the late 1990s, the U.S. economy was on the rise and GM and Ford gained market share producing enormous profits primarily from the sale of light trucks and sport-utility vehicles. From 2000 to 2001, the Federal Reserve in a move to quell the stock market, made twelve successive interest rate increases. Following the September 11, 2001 attacks, a severe stock market decline caused a pension and benefit fund underfunding crisis. GM began its Keep America Rolling campaign, which boosted sales, and other auto makers were forced to follow suit. The U.S. automakers saw sales increase to leverage costs as gross margins deteriorated. Although retiree health care costs remain a significant issue, General Motors' investment strategy has generated a $17.1 billion surplus in 2007 in its $101 billion U.S. pension fund portfolio, a $35 billion reversal from its $17.8 billion of underfunding.

In 2004, GM redirected resources from the development of new sedans to an accelerated refurbishment of their light trucks and SUVs for introduction as 2007 models in early 2006. Shortly after this decision, fuel prices increased by over 50% and this in turn affected both the trade-in value of used vehicles and the perceived desirability of new offerings in these market segments. The current marketing plan is to tout these revised vehicles extensively as offering the best fuel economy in their class (of vehicle). GM claims its hybrid trucks will have gas-mileage improvements of 25%.

In the middle of 2005, GM announced that its corporate chrome emblem "Mark of Excellence" will begin appearing on all recently introduced and all-new 2006 model vehicles produced and sold in North America. The move is seen as an attempt by GM to link its name and vehicle brands more closely.

In 2005, GM promoted sales through an employee discount to all buyers. Marketed as the lowest possible price, GM cleared an inventory buildup of 2005 models to make way for its 2006 lineup. While the promotion was a temporary shot in the arm for sales, it did not help the company's bottom line. GM has since changed its marketing strategy to a no haggle sticker policy in which all vehicle prices are lowered, but incentives are reduced, if not eliminated.

The electric car

2009-06-03T00:29:00.000-07:00

In 1990, GM debuted the revolutionary "Impact" concept car at the Los Angeles Auto Show. It was the first car with zero-emissions marketed in the US in over three decades. The Impact was eventually produced as the EV1 for the 1996 model year. It was available through dealers located in only a few regions (e.g., California, Arizona, Georgia). Vehicles were leased, rather than sold, to individuals. In 2003 GM decided to cease production of the vehicles. All EV1's were either destroyed or donated to museums or universities.^{[citation needed]}

Compacts arrive

2009-06-03T00:26:00.000-07:00

The decade of the 1960s saw the creation of compact and intermediate classes. The Chevrolet Corvair was a flat 6-cylinder (air cooled) answer to the Volkswagen Beetle, the Chevy II was created to match Ford's conventional Falcon, after sales of the Corvair failed to match its Ford rival, and the Chevrolet Camaro/Pontiac Firebird was GMs counter measure to the Ford Mustang. Among intermediates, the Oldsmobile Cutlass nameplate became so popular during the 1970s that Oldsmobile applied the Cutlass name to most of its products in the 1980s. By the mid 1960s, most of GM's vehicles were built on a few common platforms and in the 1970s GM began to use nearly identical body panel stampings, differing only in internal and external trim items.^{[citation needed]}

The 1971 Chevrolet Vega was GM's launch into the new subcompact class to compete against the import's increasing market share. Problems associated with its innovative aluminum engine led to the model's discontinuation after seven model years in 1977. During the late 1970s, GM would initiate a wave of downsizing starting with the Chevrolet Caprice which was reborn into what was the size of the Chevrolet Chevelle, the Malibu would be the size of the Nova, and the Nova was replaced by the troubled front-wheel drive Chevrolet Citation. In 1976 Chevrolet came out with the rear-wheel drive sub compact Chevette. It was a well built car but couldn't compete with the Japanese imports in overall quality and standard features.^{[citation needed]}

Company overview

2009-06-03T00:24:00.000-07:00

General Motors currently employs approximately 266,000 people around the world. General Motor's global headquarters is the Renaissance Center located in Detroit, Michigan, United States. In 2007, 9.35 million GM cars and trucks were produced in 19 different countries. GM is the majority shareholder in GM Daewoo Auto & Technology Co. of South Korea and has had many collaborations with the world's various automakers. This includes product, powertrain and purchasing collaborations with Suzuki Motor Corp. and Isuzu Motors Ltd. of Japan, advanced technology collaborations with Toyota Corporation and BMW AG of Germany and vehicle manufacturing ventures with several of the world's automakers including Toyota, Suzuki, Shanghai Automotive Industry Corporation. of China, AvtoVAZ of Russia, Renault SA of France, and most recently, UzAvtosanoa of Uzbekistan. GM also had collaborations with Fiat S.p.A (see GM/Fiat Premium platform) and Ford Motor Company. To this day, GM retains various stakes in many different automakers.

According to at least one automotive columnist, as GM seeks aid from European governments in 2009 while acknowledging it has no alternative plan, and admits it is willing to surrender control of its operations in Europe to enable an infusion of cash, the "de facto deglobalization" of GM is in progress.

The domain name gm.com attracted at least 7 million visitors annually by 2008.

General Motors Corporation (GM)

2009-06-03T00:15:00.000-07:00

(OTCBB: GMGMQ/Pink Sheets: GMGMQ) is a U.S. automaker based in Detroit, Michigan. It is the world's second-largest after Toyota, ranked by 2008 global unit sales. GM was the global sales leader for 77 consecutive calendar years from 1931 to 2007. It manufactures cars and trucks in 34 countries. GM employs 244,500 people around the world, and sells and services vehicles in some 140 countries. In 2008, 8.35 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Opel, Vauxhall, Holden, Pontiac, Saab, Saturn and Wuling.

In late 2008 GM, along with Chrysler, received loans from the United States, Canada, and Ontario governments to avoid bankruptcy resulting from the late-2000s recession, record oil prices, mismanagement, and fierce competition (see also automotive industry crisis of 2008–2009). On February 20, 2009, GM's Saab division filed for reorganization in a Swedish court after being denied loans from the Swedish government. On April 27, 2009, amid ongoing financial problems and restructuring efforts, GM announced that it would phase out the Pontiac brand by the end of 2010 and focus on four brands in North America: Chevrolet, Cadillac, Buick, and GMC. It also announced that the resolution (sale) of its Hummer, Saab, and Saturn brands would take place by the end of 2009. GM had previously eliminated the Oldsmobile brand earlier in the decade for similar reasons.

As of April 24, 2009 (2009 -04-24)^[update], GM has received US$15.4 billion in loans from the US Treasury Department under the Troubled Assets Relief Program (TARP). GMAC, a financing company held 49% by GM, has received US$5 billion in loans under the same program, while GM has received an additional US$1 billion loan to buy more equity in GMAC. General Motors Canada, 100% owned by GM, has received a combined loan commitment of C$3 billion from the Canadian and Ontario governments.

General Motors filed for a government-assisted Chapter 11 bankruptcy protection on June 1, 2009, with a plan to re-emerge as a smaller and less debt-burdened organization in several months. The chapter 11 petition was filed in the federal court in Manhattan, New York. The filing reported US$82.29 billion in assets and US$172.81 billion in debt. As ranked by total assets, the bankruptcy is the fourth-largest in U.S. history, following Lehman Brothers Holdings Inc., Washington Mutual and WorldCom Inc.

history

2009-05-12T07:04:00.000-07:00

Although Nicolas-Joseph Cugnot is often credited with building the first self-propelled mechanical vehicle or automobile in about 1769 by adapting an existing horse-drawn vehicle, this claim is disputed by some[citation needed], who doubt Cugnot's three-wheeler ever ran or was stable. Ferdinand Verbiest, a member of a Jesuit mission in China, built the first steam-powered vehicle around 1672 which was of small scale and designed as a toy for the Chinese Emperor that was unable to carry a driver or a passenger, but quite possibly, was the first working steam-powered vehicle ('auto-mobile'). What is not in doubt is that Richard Trevithick built and demonstrated his Puffing Devil road locomotive in 1801, believed by many to be the first demonstration of a steam-powered road vehicle although it was unable to maintain sufficient steam pressure for long periods, and would have been of little practical use. In Russia, in the 1780s, Ivan Kulibin developed a human-pedalled, three-wheeled carriage with modern features such as a flywheel, brake, gear box, and bearings; however, it was not developed further. François Isaac de Rivaz, a Swiss inventor, designed the first internal combustion engine, in 1806, which was fueled by a mixture of hydrogen and oxygen and used it to develop the world's first vehicle, albeit rudimentary, to be powered by such an engine. The design was not very successful, as was the case with others such as Samuel Brown, Samuel Morey, and Etienne Lenoir with his hippomobile, who each produced vehicles (usually adapted carriages or carts) powered by clumsy internal combustion engines. In November 1881 French inventor Gustave Trouvé demonstrated a working three-wheeled automobile that was powered by electricity. This was at the International Exhibition of Electricity in Paris. Although several other German engineers (including Gottlieb Daimler, Wilhelm Maybach, and Siegfried Marcus) were working on the problem at about the same time, Karl Benz generally is acknowledged as the inventor of the modern automobile. An automobile powered by his own four-stroke cycle gasoline engine was built in Mannheim, Germany by Karl Benz in 1885 and granted a patent in January of the following year under the auspices of his major company, Benz & Cie., which was founded in 1883. It was an integral design, without the adaptation of other existing components and including several new technological elements to create a new concept. This is what made it worthy of a patent. He began to sell his production vehicles in 1888.
In 1879 Benz was granted a patent for his first engine, which had been designed in 1878. Many of his other inventions made the use of the internal combustion engine feasible for powering a vehicle. His first Motorwagen was built in 1885 and he was awarded the patent for its invention as of his application on January 29, 1886. Benz began promotion of the vehicle on July 3, 1886 and approximately 25 Benz vehicles were sold between 1888 and 1893, when his first four-wheeler was introduced along with a model intended for affordability. They also were powered with four-stroke engines of his own design. Emile Roger of France, already producing Benz engines under license, now added the Benz automobile to his line of products. Because France was more open to the early automobiles, initially more were built and sold in France through Roger than Benz sold in Germany. In 1896, Benz designed and patented the first internal-combustion flat engine, called a boxermotor in German. During the last years of the nineteenth century, Benz was the largest automobile company in the world with 572 units produced in 1899 and because of its size, Benz & Cie., became a joint-stock company. Daimler and Maybach founded Daimler Motoren Gesellschaft (Daimler Motor Company, DMG) in Cannstatt in 1890 and under the brand name, Daimler, sold their first automobile in 1892, which was a horse-drawn stagecoach built by another manufacturer, that they retrofitted with an engine of their design. By 1895 about 30 vehicles had been built by Daimler and Maybach, either at the Daimler works or in the Hotel Hermann, where they set up shop after falling out with their backers. Benz and the Maybach and Daimler team seem to have been unaware of each other's early work. They never worked together because by the time of the merger of the two companies, Daimler and Maybach were no longer part of DMG. Daimler died in 1900 and later that year, Maybach designed an engine named Daimler-Mercedes, that was placed in a specially-ordered model built to specifications set by Emil Jellinek. This was a production of a small number of vehicles for Jellinek to race and market in his country. Two years later, in 1902, a new model DMG automobile was produced and the model was named Mercedes after the Maybach engine which generated 35 hp. Maybach quit DMG shortly thereafter and opened a business of his own. Rights to the Daimler brand name were sold to other manufacturers. Karl Benz proposed co-operation between DMG and Benz & Cie. when economic conditions began to deteriorate in Germany following the First World War, but the directors of DMG refused to consider it initially. Negotiations between the two companies resumed several years later when these conditions worsened and, in 1924 they signed an Agreement of Mutual Interest, valid until the year 2000. Both enterprises standardized design, production, purchasing, and sales and they advertised or marketed their automobile models jointly—although keeping their respective brands. On June 28, 1926, Benz & Cie. and DMG finally merged as the Daimler-Benz company, baptizing all of its automobiles Mercedes Benz as a brand honoring the most important model of the DMG automobiles, the Maybach design later referred to as the 1902 Mercedes-35hp, along with the Benz name. Karl Benz remained a member of the board of directors of Daimler-Benz until his death in 1929 and at times, his two sons participated in the management of the company as well. In 1890, Emile Levassor and Armand Peugeot of France began producing vehicles with Daimler engines and so laid the foundation of the automobile industry in France. The first design for an American automobile with a gasoline internal combustion engine was drawn in 1877 by George Selden of Rochester, New York, who applied for a patent for an automobile in 1879, but the patent application expired because the vehicle was never built. After a delay of sixteen years and a series of attachments to his application, on November 5, 1895, Selden was granted a United States patent (U.S. Patent 549,160) for a two-stroke automobile engine, which hindered, more than encouraged, development of automobiles in the United States. His patent was challenged by Henry Ford and others, and overturned in 1911. In Britain there had been several attempts to build steam cars with varying degrees of success with Thomas Rickett even attempting a production run in 1860. Santler from Malvern is recognized by the Veteran Car Club of Great Britain as having made the first petrol-powered car in the country in 1894 followed by Frederick William Lanchester in 1895 but these were both one-offs. The first production vehicles in Great Britain came from the Daimler Motor Company, a company founded by Harry J. Lawson in 1896 after purchasing the right to use the name of the engines. Lawson's company made its first automobiles in 1897 and they bore the name Daimler. In 1892, German engineer Rudolf Diesel was granted a patent for a "New Rational Combustion Engine". In 1897 he built the first Diesel Engine.[9] Steam-, electric-, and gasoline-powered vehicles competed for decades, with gasoline internal combustion engines achieving dominance in the 1910s. Although various pistonless rotary engine designs have attempted to compete with the conventional piston and crankshaft design, only Mazda's version of the Wankel engine has had more than very limited success

Gasoline

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Gasoline engines have the advantage over diesel in being lighter and able to work at higher rotational speeds and they are the usual choice for fitting in high-performance sports cars. Continuous development of gasoline engines for over a hundred years has produced improvements in efficiency and reduced pollution. The carburetor was used on nearly all road car engines until the 1980s but it was long realised better control of the fuel/air mixture could be achieved with fuel injection. Indirect fuel injection was first used in aircraft engines from 1909, in racing car engines from the 1930s, and road cars from the late 1950s. Gasoline Direct Injection (GDI) is now starting to appear in production vehicles such as the 2007 (Mark II) BMW Mini. Exhaust gases are also cleaned up by fitting a catalytic converter into the exhaust system. Clean air legislation in many of the car industries most important markets has made both catalysts and fuel injection virtually universal fittings. Most modern gasoline engines also are capable of running with up to 15% ethanol mixed into the gasoline - older vehicles may have seals and hoses that can be harmed by ethanol. With a small amount of redesign, gasoline-powered vehicles can run on ethanol concentrations as high as 85%. 100% ethanol is used in some parts of the world (such as Brazil), but vehicles must be started on pure gasoline and switched over to ethanol once the engine is running. Most gasoline engined cars can also run on LPG with the addition of an LPG tank for fuel storage and carburettor modifications to add an LPG mixer. LPG produces fewer toxic emissions and is a popular fuel for fork-lift trucks that have to operate inside buildings.

Production

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he large-scale, production-line manufacturing of affordable automobiles was debuted by Ransom Olds at his Oldsmobile factory in 1902. This concept was greatly expanded by Henry Ford, beginning in 1914.

As a result, Ford's cars came off the line in fifteen minute intervals, much faster than previous methods, increasing productivity eight fold (requiring 12.5 man-hours before, 1 hour 33 minutes after), while using less manpower. It was so successful, paint became a bottleneck. Only Japan black would dry fast enough, forcing the company to drop the variety of colors available before 1914, until fast-drying Duco lacquer was developed in 1926. This is the source of Ford's apocryphal remark, "any color as long as it's black".^[13] In 1914, an assembly line worker could buy a Model T with four months' pay.

Portrait of Henry Ford (ca. 1919)

Ford's complex safety procedures—especially assigning each worker to a specific location instead of allowing them to roam about—dramatically reduced the rate of injury. The combination of high wages and high efficiency is called "Fordism," and was copied by most major industries. The efficiency gains from the assembly line also coincided with the economic rise of the United States. The assembly line forced workers to work at a certain pace with very repetitive motions which led to more output per worker while other countries were using less productive methods.

In the automotive industry, its success was dominating, and quickly spread worldwide seeing the founding of Ford France and Ford Britain in 1911, Ford Denmark 1923, Ford Germany 1925; in 1921, Citroen was the first native European manufacturer to adopt the production method. Soon, companies had to have assembly lines, or risk going broke; by 1930, 250 companies which did not, had disappeared.

Development of automotive technology was rapid, due in part to the hundreds of small manufacturers competing to gain the world's attention. Key developments included electric ignition and the electric self-starter (both by Charles Kettering, for the Cadillac Motor Company in 1910-1911), independent suspension, and four-wheel brakes.

Ford Model T, 1927, regarded as the first affordable American automobile

Since the 1920s, nearly all cars have been mass-produced to meet market needs, so marketing plans often have heavily influenced automobile design. It was Alfred P. Sloan who established the idea of different makes of cars produced by one company, so buyers could "move up" as their fortunes improved.

Reflecting the rapid pace of change, makes shared parts with one another so larger production volume resulted in lower costs for each price range. For example, in the 1930s, LaSalles, sold by Cadillac, used cheaper mechanical parts made by Oldsmobile; in the 1950s, Chevrolet shared hood, doors, roof, and windows with Pontiac; by the 1990s, corporate drivetrains and shared platforms (with interchangeable brakes, suspension, and other parts) were common. Even so, only major makers could afford high costs, and even companies with decades of production, such as Apperson, Cole, Dorris, Haynes, or Premier, could not manage: of some two hundred American car makers in existence in 1920, only 43 survived in 1930, and with the Great Depression, by 1940, only 17 of those were left.

In Europe much the same would happen. Morris set up its production line at Cowley in 1924, and soon outsold Ford, while beginning in 1923 to follow Ford's practise of vertical integration, buying Hotchkiss (engines), Wrigley (gearboxes), and Osberton (radiators), for instance, as well as competitors, such as Wolseley: in 1925, Morris had 41% of total British car production. Most British small-car assemblers, from Abbey to Xtra had gone under. Citroen did the same in France, coming to cars in 1919; between them and other cheap cars in reply such as Renault's 10CV and Peugeot's 5CV, they produced 550,000 cars in 1925, and Mors, Hurtu, and others could not compete. Germany's first mass-manufactured car, the Opel 4PS Laubfrosch (Tree Frog), came off the line at Russelsheim in 1924, soon making Opel the top car builder in Germany, with 37.5% of the market.

Sports car racing

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The Audi R8 was one of the most successful sports prototypes ever made, seen here at Road Atlanta.

In sports car racing, production versions of sports cars and/or grand tourers, and sports prototype cars compete within their respective classes on closed circuits. The races are often conducted over long distances, at least 1000 km, and cars are driven by teams of two or three drivers (and sometimes more in the US), switching every few hours. Due to the performance difference between production-based sports cars and purpose-built sports prototypes, one race usually involves several racing classes. In the US the American Le Mans Series (ALMS) was organized in 1999, featuring GT1, GT2, and two prototype classes, LMP1 (Le Mans Prototype 1) and LMP2. Manufacturers such as Audi and Acura/Honda field or support entries in the Prototype class. Another series based on Le Mans began in 2004, the Le Mans Endurance Series, which included four 1000 km races at tracks in Europe. A competing body, Grand-Am, which began in 2000, sanctions its own endurance series the Rolex Sports Car Series.

Famous sports car races include the 24 Hours of Le Mans, the 24 Hours of Daytona, 24 Hours of Spa-Franchorchamps, the 12 Hours of Sebring, and the 1,000-mile (1,600 km) Petit Le Mans at Road Atlanta.

Drag racing

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In drag racing, the objective is to complete a given straight-line distance, from a standing start, ahead of a vehicle in a parallel lane. This distance is traditionally ¼ mile (400 m), though 1/8 mile (200 m) has become popular since the 1990s. The vehicles may or may not be given the signal to start at the same time, depending on the class of racing. Vehicles range from the everyday car to the purpose-built dragster. Speeds and elapsed time differ from class to class. Average street cars cover the ¼ mile in from 10 to 15 seconds whereas a top fuel dragster takes 4.5 seconds or less, reaching speeds of up to 530 km/h (330 mph). Drag racing was organized as a sport by Wally Parks in the early 1950s through the NHRA (National Hot Rod Association), the largest motorsports sanctioning body in the world. The NHRA was formed to discourage street racing.

Launching, a top fuel dragster will accelerate at 4.5 g (44 m/s²), and when braking parachutes are deployed the deceleration is 4 g (39 m/s²), more than the Space Shuttle experiences. A top fuel car can be heard over 8 miles (13 km) away and generates a reading of 1.5 to 2 on the Richter scale.

Drag racing is two cars head-to-head, the winner proceeding to the next round. Professional classes are all first to the finish line wins. Sportsman racing is handicapped (slower car getting a head start) using an index (a lowest e.t. allowed), and cars running under (quicker than) their index "break out" and lose. The slowest cars, bracket racers, are also handicapped, but rather than an index, they use a "dial-in". Bracket racing has been viewed as the main cause of the loss of public interest in drag racing. People don't understand why the slower car wins or why somebody needs to hit the brakes to avoid going too fast. Many local tracks have also complained that bracket racers will also go out of their way to spend as little as possible while at the track by bringing their own food, beverages, fuel and supplies thus, making it more difficult for tracks to make money on these events. This causes gate prices to rise and tracks losing interest in having such events.

Rallying

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A Ford Escort RS Cosworth, driven by Malcolm Wilson on a stage rally.

Rallying, or rally racing, involves two classes of car. The modified Group A, but road legal, production based cars and the Group N Production cars compete on (closed) public roads or off-road areas run on a point-to-point format where participants and their co-drivers "rally" to a set of points, leaving in regular intervals from start points. A rally is typically conducted over a number of "special stages" of any terrain, which entrants are often allowed to scout beforehand at reduced speeds compiling detailed shorthand descriptions of the track or road as they go. These detailed descriptions are known as "pace notes." During the actual rally, the co-driver reads the pace notes aloud (using an in-helmet intercom system) to the driver, enabling them to complete each stage as quickly as possible. Competition is based on lowest total elapsed time over the course of an event's special stages, including penalties.

The top series is the World Rally Championship (WRC), but there also regional championships and many countries have their own national championships. Some famous rallies include the Monte Carlo Rally, Rally Argentina, Rally Finland and Rally GB. Another famous event (actually best described as a "rally raid") is the Paris-Dakar Rally. There are also many smaller, club level, categories of rallies which are popular with amateurs, making up the "grass roots" of motor sports.

Stock car racing

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Stock car racing, is hugely popular in the USA and is also widely followed in the UK and Europe. It is the most popular form of racing in the United States

Usually raced on oval tracks made with clay, asphalt, or concrete, stock cars may resemble production cars but are in fact purpose-built racing machines which are built to tight specifications. Early stock cars were actual production vehicles; the car to be raced was often driven from track to track. The modern car however is far removed from the production model which it represents, making the term "stock car" somewhat incorrect.

The largest stock car racing governing body is NASCAR. NASCAR's premier series is the Sprint Cup Series, its most famous races being the Daytona 500 and the Brickyard 400. NASCAR also runs several feeder series. The Nationwide Series, and Camping World Truck Series (a pickup truck racing series) conduct races across the entire continental United States. The NASCAR Canadian Tire Series conducts races across Canada and the NASCAR Corona Series conducts races across Mexico. NASCAR also governs several smaller regional series.

NASCAR also governs the Whelen Modified Tour. Modified cars are best described as hybrids of stock cars and open-wheel cars. They are heavily altered from stock, with powerful engines, large tires, tubular chassis and light bodies. The Whelen Modified tour is NASCAR's oldest series.

A World of Outlaws late model stock car on a dirt track.

There are also other stock car governing bodies, such as Automobile Racing Club of America and United Speed Alliance Racing.

In the UK, British Stock car racing is also referred to as "Short Circuit Racing". This takes place on shale or tarmac tracks - usually around 1/4 mile in length. The governing bodies for the sport are the Oval Racing Council (ORC) and BriSCA. Both bodies are made up of individual stadium promoters. There are around 35 tracks in the UK and upwards of 7000 active drivers. The sport is split into three basic "divisions" - distinguished by the rules regarding car-contact during racing.

Full Contact formulas include Bangers, Bombers and Rookie Bangers - and racing features Demolitions Derbies, Figure of Eight racing and Oval Racing

Semi Contact Formulas include BriSCA F1, F2 and Superstox - where bumpers are used tactically.

Non-contact formulas include National Hot Rods, Stock Rods and Lightning Rods.

UK Stockcar racing started in the 1950s and grew rapidly through the 60s and 70s. Today it remains one of the most popular forms of motorsport in the UK - with regular events attacting substantial crowds to dramatic and intense events.

The major Promoter of Stockcar racing in the UK is Spedeworth/Incarace, with 10 raceways and 250 events each year.

Touring car racing

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Andy Priaulx leading the World Touring Car Championship 2006 Race 10 in Curitiba.

Touring car racing is a style of road racing that is run with production derived race cars. It often features exciting, full-contact racing due to the small speed differentials and large grids.

The V8 Supercars originally from Australia, British Touring Car Championship, Deutsche Tourenwagen Masters originally from Germany, and the World Touring Car Championship held with 2 non-European races (previously the European Touring Car Championship) are the major touring car championships conducted worldwide, along with a European Touring Cup, a one day event open to Super 2000 specification touring cars from Europe's many national championships.

The Sports Car Club of America's SPEED World Challenge Touring Car and GT championships are dominant in North America while the venerable British Touring Car Championship continues in the United Kingdom. America's historic Trans-Am Series is undergoing a period of transition, but is still the longest-running road racing series in the U.S. The National Auto Sport Association also provides a venue for amateurs to compete in home-built factory derived vehicles on various local circuits.

HISTORY RACING

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Racing began soon after the construction of the first successful petrol-fueled autos; before that time people raced in other vehicles such as horse-drawn buggies. The first race ever organized, by the chief editor of Paris publication Le Vélocipède, Monsieur Fossier, was on April 28 1887 and ran 2 kilometers from Neuilly Bridge to the Bois de Boulogne. It was won by Georges Bouton, in a car he had constructed with Albert, the Comte de Dion, but as he was the only competitor to show up it is rather pointless to call it a race. On July 22 1894, the first real contest was organized by Paris magazine Le Petit Journal, as a reliability test. The Comte de Dion was first to arrive in Rouen on his steam car, but a Panhard et Levassor was judged to be the winner.

In 1895, one year later, the first real race was staged in France, from Paris to Bordeaux. First over the line was Émile Levassor but he was disqualified because his car was not a required four-seater.

The first regular auto racing venue was Nice, France, run in late March 1897 as a "Speed Week." To fill out the schedule, most types of racing event were invented here, including the first hill climb (Nice - La Turbie) and a sprint that was, in spirit, the first drag race.

An international competition, between nations rather than individuals, began with the Gordon Bennett Cup in auto racing.

The first auto race in the United States took place in Evanston, Illinois on November 28, 1895 over an 87.48-km (54.36 mile) course, with Frank Duryea winning in 10 hours and 23 minutes, beating three petrol-fueled and two electric cars.The first trophy awarded was the Vanderbilt Cup.

City to city racing

Fernand Gabriel driving a Mors in Paris-Madrid 1903

With auto construction and racing dominated by France, the French automobile club ACF staged a number of major international races, usually from or to Paris, connecting with another major city in Europe or France.

These very successful races ended in 1903 when Marcel Renault was involved in a fatal accident near Angouleme in the Paris-Madrid race. Nine fatalities caused the French government to stop the race in Bordeaux and ban open-road racing.[citation needed]

1910-1950

The 1930s saw the transformation from high-priced road cars into pure racers, with Delage, Auto Union, Mercedes-Benz, Delahaye, and Bugatti constructing streamlined vehicles with engines producing up to 450 kW (612 hp), aided by multiple-stage supercharging. From 1928-1930 and again in 1934-1936, the maximum weight permitted was 750 kg, a rule diametrically opposed to current racing regulations. Extensive use of aluminium alloys was required to achieve light weight, and in the case of the Mercedes, the paint was removed to satisfy the weight limitation, producing the famous Silver Arrows.

F1 racing

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F1 racing is a monthly magazine focused on Formula One racing which launched in March, 1996.

The previous Editor, Matt Bishop, also writes a fortnightly column for the website of the weekly magazine Autosport (sister publication of F1 Racing). Matt Bishop left in 2007 to join McLaren and was replaced by the new executive editor Tim Scott, later by Hans Seeberg.

In July 2005, F1 Racing celebrated its one hundredth issue; it continues to publish in over twenty countries, and claims the title "The World's Best-Selling Grand Prix Magazine." In the one hundred issues, Michael Schumacher had been cover feature over forty times — more than any other driver — including the first issue in March, 1996. In February 2001, a "Michael Schumacher Special Edition" was published.

Many well respected journalists and photographers contribute to the magazine. Such regulars include journalists Peter Windsor and Alan Henry, and renowned photographers Darren Heath, Steven Tee and Lorenzo Bellanca. Damon Hill was 'Guest Editor' in January, 2000, which featured an interview between him and Michael Schumacher. From the March 2006 issue of F1 Racing Max Mosley, president of the FIA, has a monthly column in the magazine.

At the 1997 Austrian Grand Prix, Darren Heath, an F1 Racing photographer, noticed that the rear brakes of the McLarens were glowing red in an acceleration zone of the track. The magazine discovered through investigation that McLaren had installed a second brake pedal, selectable by the driver to act on one of the rear wheels. This allowed the driver to eliminate understeer and reduce wheelspin when exiting slow corners. This system was entirely legal, but was an innovation, and hence gave McLaren an advantage. While F1 Racing suspected what McLaren were doing, they required proof to publish the story. At the 1997 Luxembourg Grand Prix the two McLarens retired from the race. This allowed Heath to take a picture of the footwell of Häkkinen's car and the second brake pedal. The story was run in the November issue of F1 Racing and lead to the system being dubbed "brake steer". Ferrari's protestations to the FIA led to the system being banned at the 1998 Brazilian Grand Prix.

Formula1 in Television

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Formula One can be seen live or tape delayed in almost every country and territory around the world and attracts one of the largest global television audiences. The 2006 Brazilian Grand Prix attracted an average live global TV audience of eighty-three million viewers, with a total of 154 million viewers tuning in to watch at least some part of the event.Official figures from FOM for 2006 that state Formula One television broadcasts were witnessed by 580 million unique viewers during the 2005 season and average viewing figures for 1995–1999 were 50 billion.It is a massive television event; the cumulative television audience was calculated to be 54 billion for 2001 season, broadcast to two hundred countries.

In 2005, the Canadian Grand Prix in Montréal was the most watched of the races, and the third most watched sporting event in the world.

During the early 2000s, Formula One Administration created a number of trademarks, an official logo, and an official website for the sport in an attempt to give it a corporate identity. Ecclestone experimented with a digital television package (known colloquially as Bernievision), which was launched at the 1996 German Grand Prix in cooperation with German digital television service "DF1", thirty years after the first GP colour TV broadcast, the 1967 German Grand Prix. This service offered the viewer several simultaneous feeds (such as super signal, onboard, top of field, backfield, highlights, pit lane, timing), which were produced with cameras, technical equipment and staff different from those used for the conventional coverage. It was introduced in many countries over the years, but was shut down after the 2002 season for financial reasons.

TV stations all take what is known as the 'World Feed', either produced by the FOM (Formula One Management) or the 'host broadcaster'. The only station that has any difference is 'Premiere'—a German channel that offers all sessions live and interactive, with features such as the onboard channel. This service was more widely available around Europe until the end of 2002, when the cost of a whole different feed for the digital interactive services was thought too much. This was in large part because of the failure of the 'F1 Digital +' Channel launched through Sky Digital in the United Kingdom. Prices were too high for viewers, considering they could watch both the qualifying and the races themselves free on ITV.

Bernie Ecclestone had announced that F1 will adopt the HD format near the end of the 2007 season. However, details of the races to be covered and the means of showing the content have yet to be announced. Also it was announced early in 2008 that the BBC would be broadcasting F1 for five years, starting in 2009, regaining the rights from ITV who had been broadcasting it since they got the rights in 1997.However, on 31 December 2008, Roger Mosey, Director of BBC Sport announced that F1 would not be broadcast on BBC HD because "no HD world feed is available".

Grands Prix

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The number of Grands Prix held in a season has varied over the years. Only seven races comprised the inaugural 1950 world championship season; over the years the calendar has almost tripled in size. Though the number of races had stayed at sixteen or seventeen since the 1980s, it reached nineteen in 2005.

Six of the original seven races took place in Europe; the only non-European race that counted towards the World Championship in 1950 was the Indianapolis 500, which, due to lack of participation by F1 teams, since it required cars with different specifications from the other races, was later replaced by the United States Grand Prix. The F1 championship gradually expanded to other non-European countries as well. Argentina hosted the first South American grand prix in 1953, and Morocco hosted the first African World Championship race in 1958. Asia (Japan in 1976) and Oceania (Australia in 1985) followed. The current eighteen races are spread over the continents of Europe, Asia, Oceania, North America and South America.

Traditionally each nation has hosted a single Grand Prix, which carries the name of the country. If a single country hosts multiple Grands Prix in a year they receive different names. For instance, a European country (such as Britain, Germany or Spain) which has hosted two Grands Prix has the second one known as the European Grand Prix, while Italy's second grand prix was named after nearby republic of San Marino. Similarly, as two races were scheduled in Japan in 1994/1995, the second event was known as the Pacific Grand Prix. In 1982, the United States hosted three Grands Prix.

The Grands Prix, some of which have a history that pre-dates the Formula One World Championship, are not always held on the same circuit every year. The British Grand Prix, for example, though held every year since 1950, alternated between Brands Hatch and Silverstone from 1963 to 1986. The only other race to have been included in every season is the Italian Grand Prix. The World Championship event has taken place exclusively at Monza with just one exception: in 1980, it was held at Imola, host to the San Marino Grand Prix until 2006.

One of the newest races on the Grand Prix calendar, held in Bahrain, represents Formula One's first foray into the Middle East with a high-tech purpose-built desert track. The Bahrain Grand Prix, and other new races in China and Turkey, present new opportunities for the growth and evolution of the Formula One Grand Prix franchise while new facilities also raise the bar for other Formula One racing venues around the world. In order to make room on the schedule for the newer races, older or less successful events in Europe and the Americas have been dropped from the calendar, such as these in Argentina, Austria, Mexico, San Marino, and the United States.

In 2007 it was confirmed that new Grands Prix would be added to the calendar. The first was the Singapore Grand Prix in September 2008, which had the honour of the first night race ever held in Formula One.The second was the Indian Grand Prix which will be held in Delhi, India.Other changes included the removal of the United States Grand Prix from the calendar,and the move of the European Grand Prix to Valencia, Spain.

Beyond F1

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Most F1 drivers retire before their mid-30s; however, many keep racing in disciplines which are less physically demanding. The German touring car championship, the DTM, is a popular category involving ex-drivers such as two-times F1 champion Mika Häkkinen and Jean Alesi, and some F1 drivers have left to race in America–Nigel Mansell and Emerson Fittipaldi duelled for the 1993 IndyCar title, and Juan Pablo Montoya, Scott Speed and Jacques Villeneuve have moved to NASCAR. Some drivers have gone to A1GP (Narain Karthikeyan), and some, such as Gerhard Berger and Alain Prost, returned to F1 as team owners. A series for former Formula One drivers, called Grand Prix Masters, ran briefly in 2005 and 2006.Others have become pundits for TV coverage such as Martin Brundle for ITV and Jean Alesi for Italian national network RAI and David Coulthard for the BBC. Others, such as Damon Hill and Jackie Stewart take active roles in motorsport in their own countries.

Modified cars Common upgrades

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Common upgrades include replacing the standard factory issue wheels with after market alloy wheels, usually of a larger diameter to improve the aesthetics; lowering the suspension of the car to give it a "quick" look by replacing the springs (and sometimes shock absorbers too) or torsion bars; replacing the existing exhaust system with one with less restriction allowing better exhaust flow, louder and deeper sound and possible improvements in performance (due to easier flow rate).

Going further with a modified car could involve adding a fiberglass body kit to improve the aesthetics, changing the paint to a more novel color or increasing the engine performance with a high-flow air filter, port and polish or even forced induction, such as a turbocharger kit. Aside from the use of body kits, traditional customizing methods like roof chops, two door stretches, suicide doors, channeling and lights, trim and sheet metal from another car and sectioning are sometimes also used.

Simple accessories or audio upgrades, although technically still a modification, are so common place with car owners in general they aren’t classed as such. Replacing a radio cassette player with a CD player or adding fabric seat covers fall into this category.

GP2 Series cars

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The GP2 Series car is used by all of the teams, and features a Dallara chassis powered by a V8 Renault engine and Bridgestone tyres.
Chassis
The 2006 specification GP2 Car has been designed by Dallara Automobili. The 2006 GP2 car features a biplane rear wing, with the triplane rear wing used in 2005 only to be used at the Monaco race. The front upper and lower wishbones have been reinforced, as have the front and rear suspension uprights.
Engine
The 4 litre Renault V8 engine features internal, cartographic and software upgrades designed to improve performance and fuel consumption. The engine produces about 580 hp (432.5 kW).
Gearbox
The 2006 gearbox has been manufactured by GearTek and features an 8-position barrel with ratchet body and software upgrades as well as a new transverse shafts fixing system designed to facilitate improved gear selection.
Tyres
Bridgestone is the single tyre supplier for the GP2 Racing Series. Although grooved dry tyres were used when the series started in 2005, regulations changed in 2006 in favour of slick tyres.Bridgestone is supplying three slick tyre compounds for racing on dry (soft, medium and hard), as well as a wet specification. The choice of tyre being raced is made jointly by the manufacturer and the GP2 Series organizers prior to each event.
Other parts
Brembo is supplying a new development of monobloc brake calipers and disc bells, which are exclusive to GP2.The car also features internal cooling upgrades, a new water radiator, radiator duct, oil/water heat exchanger, modified oil degazer, new oil and water pipes and new heat exchanger fixing brackets.
Performance
According to research and pre-season stability tests, the 2005 model can go 0 to 200 km/h (124 mph) in 6.7 seconds. The car has a top speed of 320 km/h (198 mph) meaning that it is the fastest single seater racing car bar Formula One and Indy cars. The cars are predicted to be reliable and should run within less than ten seconds per lap of the typical Formula One car

Distinction between Formula One and World Championship races

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Currently the terms "Formula One race" and "World Championship race" are effectively synonymous; since 1984, every Formula One race has counted towards the World Championship, and every World Championship race has been to Formula One regulations. But the two terms are not interchangeable. Consider that:
the first Formula One race was held in 1947, whereas the World Championship did not start until 1950.
in the 1950s and 1960s there were many Formula One races which did not count for the World Championship (e.g., in 1950, a total of twenty-two Formula One races were held, of which only six counted towards the World Championship). The number of non-championship Formula One events decreased throughout the 1970s and 1980s, to the point where the last non-championship Formula One race was held in 1983.
the World Championship was not always exclusively composed of Formula One events:
The World Championship was originally established as the "World Championship for Drivers", i.e., without the term "Formula One" in the title. It only officially became the Formula One World Championship in 1981.
From 1950 to 1960, the Indianapolis 500 counted towards the World Championship. This race was run to AAA/USAC regulations, rather than to Formula One regulations. Only one of the world championship regulars, Alberto Ascari in 1952, competed at Indianapolis during this period.
From 1952 to 1953, all races counting towards the World Championship (except the Indianapolis 500) were run to Formula Two regulations. Note that Formula One was not "changed to Formula Two" during this period; the Formula One regulations remained the same, and numerous Formula One races were staged during this time.
The distinction is most relevant when considering career summaries and "all time lists". For example, in the List of Formula One drivers, Clemente Biondetti is shown with 1 race against his name. Biondetti actually competed in four Formula One races in 1950, but only one of these counted for the World Championship. Similarly, several Indy 500 winners technically won their first world championship race, though most record books choose to ignore this and instead only record regular participants

Future

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Formula One went through a difficult period in the early 2000s. Viewing figures dropped, and fans expressed their loss of interest due to the dominance of Michael Schumacher and Scuderia Ferrari.Viewing figures are seeing some signs of recovery due to the varied seasons since 2005. Ferrari's and Schumacher's 5 year domination ended in 2005 as Renault became the top team in Formula One, with Fernando Alonso becoming the new (and youngest ever at the time) World Champion. There has since been a resurgence of interest in the sport, especially in Alonso's home country of Spain, and Lewis Hamilton's home country of Great Britain. In 2006, twenty-two teams applied for the final twelfth team spot available for the 2008 season. The spot was eventually awarded to former B.A.R. and Benetton team principal David Richards' Prodrive organization, but the team pulled out of the 2008 season in November 2007.

A sign displaying that the safety car (SC) is deployed. Safety is of paramount concern in contemporary F1.
The FIA is responsible for making rules to combat the spiralling costs of Formula One racing (which affects the smaller teams the most) and for ensuring the sport remains as safe as possible, especially in the wake of the deaths of Ayrton Senna and Roland Ratzenberger in 1994. To this end the FIA have instituted a number of rule changes, including new tyre restrictions, multi-race engines and reductions on downforce. Safety and cost have traditionally been paramount in all rule-change discussions. More recently the FIA has added efficiency to its priorities. Currently the FIA and manufacturers are discussing adding bio-fuel engines and regenerative braking for the 2011 season. FIA President Max Mosley believes F1 must focus on efficiency to stay technologically relevant in the automotive industry as well as keep the public excited about F1 technology.
After being banned since 1998, slick tyres will return to Formula One racing in 2009.
In the interest of making the sport truer to its role as a World Championship, FOM president Bernie Ecclestone has initiated and organised a number of Grands Prix in new countries and continues to discuss new future races. The sport's rapid expansion into new areas of the globe also leaves some question as to which races will be cut.

Qualifying

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The format of the qualifying session has been through several iterations since the 2003 season. Attempts were made to reinvigorate interest in the qualifying session by using a "one-shot" system in which each driver would take turns on an empty track to set their one and only time.
For the 2006 season a knock-out qualifying system was introduced and remains in use, with some minor alterations, in 2008. The qualifying session is split into three phases. In the first phase, all twenty cars are permitted on the track for a twenty minute qualification session. Only their fastest time will count and drivers may complete as many laps as they wish. At the end of the first session, the slowest five cars are eliminated and will take no further part in qualifying. These cars will make up the last five grid positions in the order of their times.The times for the fifteen remaining cars are reset for the next fifteen minute session. The slowest five cars will make up the grid in positions 11 to 15 in the order of their times set in this session.
The recorded fastest times for the ten remaining cars are then wiped in preparation for the final (ten minute) session referred to as the 'Pole Position Shootout'. At the end of this period, the cars will be arranged on the grid in positions one to ten in accordance to their fastest lap time. In the first two sessions, cars may run any fuel load and drivers knocked out after those sessions may refuel ahead of the race. However, the top-ten drivers must start the race with whatever fuel was left in the car at the end of the final qualifying session.For all the sessions, if a driver starts a timed lap before the chequered flag falls for the end of that session, their time will count even if they cross the finishing line well after the session has ended.

The manufacturers' return (2000–2007)

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Michael Schumacher and Ferrari won an unprecedented five consecutive drivers’ championships and six consecutive constructors’ championships between 1999 and 2004. Schumacher set many new records, including those for Grand Prix wins (91), wins in a season (13 of 18), and most drivers' championships (7).Schumacher's championship streak ended on September 25, 2005 when Renault driver Fernando Alonso became Formula One’s youngest champion at that time. In 2006, Renault and Alonso won both titles again. Schumacher retired at the end of 2006 after sixteen years in Formula One.
During this period the championship rules were frequently changed by the FIA with the intention of improving the on-track action and cutting costs.Team orders, legal since the championship started in 1950, were banned in 2002 after several incidents in which teams openly manipulated race results, generating negative publicity, most famously by Ferrari at the 2002 Austrian Grand Prix. Other changes included the qualifying format, the points scoring system, the technical regulations and rules specifying how long engines and tyres must last. A 'tyre war' between suppliers Michelin and Bridgestone saw lap times fall, although at the 2005 United States Grand Prix at Indianapolis seven out of ten teams did not race when their Michelin tyres were deemed unsafe for use. During 2006, Max Mosley outlined a ‘green’ future for Formula One, in which efficient use of energy would become an important factor.And the tyre war ended, as Bridgestone became the sole tyre supplier to Formula One for the 2007 season.
Since 1983, Formula One had been dominated by specialist race teams like Williams, McLaren and Benetton, using engines supplied by large car manufacturers like Mercedes-Benz, Honda, Renault and Ford. Starting in 2000, with Ford’s creation of the largely unsuccessful Jaguar team, new manufacturer-owned teams entered Formula One for the first time since the departure of Alfa Romeo and Renault at the end of 1985. By 2006, the manufacturer teams–Renault, BMW, Toyota, Honda and Ferrari–dominated the championship, taking five of the first six places in the constructors' championship. The sole exception was McLaren, which is part-owned by Mercedes Benz. Through the Grand Prix Manufacturers Association (GPMA) they negotiated a larger share of Formula One’s commercial profit and a greater say in the running of the sport.[citation needed]

Big business (1981–2000)

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Beginning in the 1970s, Bernie Ecclestone rearranged the management of Formula One's commercial rights; he is widely credited with transforming the sport into the billion-dollar business it is today.When Ecclestone bought the Brabham team in 1971 he gained a seat on the Formula One Constructors' Association and in 1978 became its President. Previously the circuit owners controlled the income of the teams and negotiated with each individually, however Ecclestone persuaded the teams to "hunt as a pack" through FOCA.[12] He offered Formula One to circuit owners as a package which they could take or leave. In return for the package almost all are required to surrender trackside advertising.
The formation of the Fédération Internationale du Sport Automobile (FISA) in 1979 set off the FISA-FOCA war, during which FISA and its president Jean-Marie Balestre clashed repeatedly with FOCA over television revenues and technical regulations.The Guardian said of FOCA that Ecclestone and Max Mosley "used it to wage a guerrilla war with a very long-term aim in view." FOCA threatened to set up a rival series, boycotted a Grand Prix and FISA withdrew its sanction from races.The result was the 1981 Concorde Agreement, which guaranteed technical stability, as teams were to be given reasonable notice of new regulations. Although FISA asserted its right to the TV revenues, it handed the administration of those rights to FOCA.[citation needed]
FISA imposed a ban on ground effect aerodynamics in 1983.By then, however, turbocharged engines, which Renault had pioneered in 1977, were producing over 700 bhp (520 kW) and were essential to be competitive. By 1986, a BMW turbocharged engine achieved a flash reading of 5.5 bar pressure, estimated to be over 1,300 bhp (970 kW) in qualifying for the Italian Grand Prix. The following year power in race trim reached around 1,100 bhp (820 kW), with boost pressure limited to only 4.0 bar.These cars were the most powerful open-wheel circuit racing cars ever. To reduce engine power output and thus speeds, the FIA limited fuel tank capacity in 1984 and boost pressures in 1988 before banning turbocharged engines completely in 1989.
The development of electronic driver aids began in the 1980s. Lotus began to develop a system of active suspension which first appeared in 1982 on the F1 Lotus 91 and Lotus Esprit road car. By 1987, this system had been perfected and was driven to victory by Ayrton Senna in the Monaco Grand Prix that year. In the early 1990s, other teams followed suit and semi-automatic gearboxes and traction control were a natural progression. The FIA, due to complaints that technology was determining the outcome of races more than driver skill, banned many such aids for 1994. This led to cars that were previously dependent on electronic aids becoming very "twitchy" and difficult to drive (notably the Williams FW16), and many observers felt that the ban on driver aids was a ban in name only as they "have proved difficult to police effectively".The teams signed a second Concorde Agreement in 1992 and a third in 1997, which expired on the last day of 2007.On the track, the McLaren and Williams teams dominated the 1980s and 1990s, with Brabham also being competitive in the early part of the 1980s, winning two drivers' championships with Nelson Piquet. Powered by Porsche, Honda, and Mercedes-Benz, McLaren won sixteen championships (seven constructors', nine drivers') in that period, while Williams used engines from Ford, Honda, and Renault to also win sixteen titles (nine constructors', seven drivers'). The rivalry between racing legends Ayrton Senna and Alain Prost became F1's central focus in 1988, and continued until Prost retired at the end of 1993. Senna died at the 1994 San Marino Grand Prix after crashing into a wall on the exit of the notorious curve Tamburello, having taken over Prost's lead drive at Williams that year. The FIA worked to improve the sport's safety standards since that weekend, during which Roland Ratzenberger also lost his life in an accident during Saturday qualifying. No driver has died on the track at the wheel of a Formula One car since, though two track marshals have lost their lives, one at the 2000 Italian Grand Prix,and the other at the 2001 Australian Grand Prix.Since the deaths of Ayrton Senna, Roland Ratzenberger and Gilles Villeneuve, the FIA has used safety as a reason to impose rule changes which otherwise, under the Concorde Agreement, would have had to be agreed upon by all the teams - most notably the changes introduced for 1998. This so called 'narrow track' era resulted in cars with smaller rear tyres, a narrower track overall and the introduction of 'grooved' tyres to reduce mechanical grip. There would be four grooves, on the front and rear - although initially three on the front tyres in the first year - that ran through the entire circumference of the tyre. The objective was to reduce cornering speeds and to produce racing similar to rain conditions by enforcing a smaller contact patch between tyre and track. This, according to the FIA, was to promote driver skill and provide a better spectacle.[citation needed]
Results have been mixed as the lack of mechanical grip has resulted in the more ingenious designers clawing back the deficit with aerodynamic grip - pushing more force onto the tyres through wings, aerodynamic devices etc - which in turn has resulted in less overtaking as these devices tend to make the wake behind the car 'dirty' (turbulent) preventing other cars from following closely, due to their dependence on 'clean' air to make the car stick to the track. The grooved tyres also had the unfortunate side effect of initially being of a harder compound, to be able to hold the groove tread blocks, which resulted in spectacular accidents in times of aerodynamic grip failure (e.g., rear wing failures), as the harder compound could not grip the track as well.
Drivers from McLaren, Williams, Renault (formerly Benetton) and Ferrari, dubbed the "Big Four", have won every World Championship from 1984 to the present day. Due to the technological advances of the 1990s, the cost of competing in Formula One rose dramatically. This increased financial burden, combined with four teams' dominance (largely funded by big car manufacturers such as Mercedes-Benz), caused the poorer independent teams to struggle not only to remain competitive, but to stay in business. Financial troubles forced several teams to withdraw. Since 1990, twenty-eight teams have pulled out of Formula One. This has prompted former Jordan owner Eddie Jordan to say that the days of competitive privateers are over.

The return of racing (1950–1958)

2008-11-07T06:28:00.000-08:00

The first Formula One World Championship was won by Italian Giuseppe Farina in his Alfa Romeo in 1950, barely defeating his Argentine teammate Juan Manuel Fangio. However Fangio won the title in 1951, 1954, 1955, 1956 & 1957 (His record of five World Championship titles stood for 45 years until German driver Michael Schumacher took his sixth title in 2003), his streak interrupted after an injury by two-time champion Alberto Ascari of Ferrari. Although the UK's Stirling Moss was able to compete regularly, he was never able to win the World Championship, and is now widely considered to be the greatest driver never to have won the title.Fangio, however, is remembered for dominating Formula One's first decade and has long been considered the "grand master" of Formula One.

The period was dominated by teams run by road car manufacturers - Alfa Romeo, Ferrari, Mercedes Benz and Maserati - all of whom had competed before the war. The first seasons were run using pre-war cars like Alfa's 158. They were front engined, with narrow treaded tyres and 1.5 litre supercharged or 4.5 litre naturally aspirated engines. The 1952 and 1953 world championships were run to Formula Two regulations, for smaller, less powerful cars, due to concerns over the number of Formula One cars available. When a new Formula One, for engines limited to 2.5 litres, was reinstated to the world championship in 1954, Mercedes-Benz introduced the advanced W196, which featured innovations such as desmodromic valves and fuel injection as well as enclosed streamlined bodywork. Mercedes won the drivers championship for two years, before withdrawing from all motor sport in the wake of the 1955 Le Mans disaster.

Molecular and structural formula

2008-09-16T07:07:00.000-07:00

For example methane, a simple molecule consisting of one carbon atom bonded to four hydrogen atoms, has the chemical formula:
CH4
and glucose with six carbon atoms, twelve hydrogen atoms and six oxygen atoms has the chemical formula:
C6H12O6.
A chemical formula supplies information about the types and spatial arrangement of bonds in the chemical, though it does not necessarily specify the exact isomer. For example ethane consists of two carbon atoms single-bonded to each other, with each carbon atom having three hydrogen atoms bonded to it. Its chemical formula can be rendered as CH3CH3. In ethylene there is a double bond between the carbon atoms (and thus each carbon only has two hydrogens), therefore the chemical formula may be written: CH2CH2, and the fact that there is a double bond between the carbons is implicit because carbon has a valence of four. However, a more explicit and correct method is to write H2C=CH2 or less commonly H2C::CH2. The two lines (or two pairs of dots) indicate that a double bond connects the atoms on either side of them.
A triple bond may be expressed with three lines or pairs of dots, and if there may be ambiguity, a single line or pair of dots may be used to indicate a single bond.

Molecules with multiple functional groups that are the same may be expressed in the following way: (CH3)3CH. However, this implies a different structure from other molecules that can be formed using the same atoms (isomers). The formula (CH3)3CH implies a chain of three carbon atoms, with the middle carbon atom bonded to another carbon (see image of 4 carbon "C" atoms), and the remaining bonds on the carbons all leading to hydrogen atoms (hydrogen atoms are not shown in image). However, the same number of atoms (10 hydrogens and 4 carbons, or C4H10) may be used to make a straight chain: CH3CH2CH2CH3.
The alkene but-2-ene has two isomers which the chemical formula CH3CH=CHCH3 does not identify. The relative position of the two methyl groups must be indicated by additional notation denoting whether the methyl groups are on the same side of the double bond (cis or Z) or on the opposite sides from each other (trans or E).

Chemical formula

2008-09-16T07:06:00.000-07:00

A chemical formula is an easy way of expressing information about the atoms that constitute a particular chemical compound, and how the relationship between those atoms changes in chemical reactions. For molecular compounds it is also known as the molecular formula, and identifies each constituent element by its chemical symbol and indicates the number of atoms of each element found in each discrete molecule of that compound. If a molecule contains more than one atom of a particular element, this quantity is indicated using a subscript after the chemical symbol (although 19th-century books often used superscripts). For ionic compounds and other non-molecular substances, the subscripts indicate the ratio of elements in the empirical formula.

Revenue and Profits

2008-09-16T07:04:00.001-07:00

Formula 1 is a profitable exercise for most parties involved. The TV channels make profits from broadcasting the races. The teams get a slice of the money raised from the sale of broadcasting rights as well as from the sponsor's logos on their cars.
The cost of building a brand new permanent circuit like in Shanghai can be up to hundreds of millions of dollars, but the cost of converting a public road such as Albert Park into a temporary circuit is much less. However permanent circuits can generate revenue all year round from leasing the track for private races and also other races such as MotoGP. The Shanghai circuit cost over $300 million.The owners are hoping to break-even by 2014. The Istanbul Park circuit cost $150 million to build.
Not all circuits make profits – for example, Albert Park made a loss of $32 million in 2007.[56]
In March 2007 F1 Racing published its annual estimates of spending by Formula One teams. The total spending of all eleven teams in 2006 was estimated at $2.9 billion. This was broken down as follows; Toyota $418.5 million, Ferrari $406.5 m, McLaren $402 m, Honda $380.5 m, BMW Sauber $355 m, Renault $324 m, Red Bull $252 m, Williams $195.5 m, Midland F1/Spyker-MF1 $120 m, Toro Rosso $75 m, and Super Aguri $57 million.
Costs vary greatly from team to team; in 2006 teams such as Honda, Toyota, McLaren-Mercedes and Ferrari are estimated to have spent approximately $200 million on engines, Renault spent approximately $125 million and Cosworth's 2006 V8 was developed for $15 million.In contrast to the 2006 season on which these figures are based, the 2007 sporting regulations ban all performance related engine development

Cars and technology

2008-09-16T07:03:00.000-07:00

Modern Formula One cars are mid-engined open cockpit, open wheel single-seaters. The chassis is made largely of carbon fibre composites, rendering it light but extremely stiff and strong. The whole car, including engine, fluids and driver, weighs only 600kg - the minimum weight set by the regulations. The construction of the cars is typically lighter than the minimum and so they are ballasted up to the minimum weight. The race teams take advantage of this by placing this ballast at the extreme bottom of the chassis, thereby locating the centre of gravity as low as possible in order to improve handling and weight transfer.
The cornering speed of Formula One cars is largely determined by the aerodynamic downforce that they generate, which pushes the car down onto the track. This is provided by 'wings' mounted at the front and rear of the vehicle, and by ground effect created by low pressure air under the flat bottom of the car. The aerodynamic design of the cars is very heavily constrained to limit performance and the current generation of cars sport a large number of small winglets, 'barge boards' and turning vanes designed to closely control the flow of the air over, under and around the car.
The other major factor controlling the cornering speed of the cars is the design of the tyres. Since 1998, tyres in Formula One have not been 'slicks' (tyres with no tread pattern) as in most other circuit racing series. Instead, each tyre has four large circumferential grooves on its surface designed to limit the cornering speed of the cars Slick tyres will return to Formula One in the 2009 season. Suspension is double wishbone or multilink all round with pushrod operated springs and dampers on the chassis. Carbon-Carbon disc brakes are used for reduced weight and increased frictional performance. These provide a very high level of braking performance and are usually the element which provokes the greatest reaction from drivers new to the formula.
Engines must be 2.4 litre naturally aspirated V8s, with many other constraints on their design and the materials that may be used. Engines run on unleaded fuel closely resembling publicly available petrol. The oil which lubricates and protects the engine from overheating is very similar in viscosity to water. The 2006 generation of engines spun up to 20,000 rpm and produced up to 780 bhp (582 kW).For 2007 engines are restricted to 19,000 rpm with limited development areas allowed, following the engine specification freeze from the end of 2006.
A wide variety of technologies – including active suspension, ground effect and turbochargers – are banned under the current regulations. Despite this the current generation of cars can reach speeds of up to 350 km/h (around 220 mph) at some circuits. A Honda Formula One car, running with minimum downforce on a runway in the Mojave desert achieved a top speed of 415 km/h (258 mph) in 2006. According to Honda the car fully met the FIA Formula One regulations. Even with the limitations on aerodynamics, at 160 km/h aerodynamically generated downforce is equal to the weight of the car and the often repeated claim that Formula One cars create enough downforce to 'drive on the ceiling' remains true in principle, although it has never been put to the test. At full speed, downforce of two and a half times the car's weight can be achieved. The downforce means that the cars can achieve a lateral force of up to five times the force of gravity (5g) in cornering – a high-performance road car like the Ferrari Enzo only achieves around 1g.Consequently in corners the driver's head is pulled sideways with a force equivalent to 20kg. Such high lateral forces are enough to make breathing difficult and the drivers need supreme concentration and fitness to maintain their focus for the one to two hours that it takes to complete the race.

Circuits

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A typical circuit usually features a stretch of straight road on which the starting grid is situated. The pit lane, where the drivers stop for fuel and tyres during the race, and where the teams work on the cars before the race, is normally located next to the starting grid. The layout of the rest of the circuit varies widely, although in most cases the circuit runs in a clockwise direction. Those few circuits that run anticlockwise (and therefore have predominantly left-handed corners) can cause drivers neck problems due to the enormous lateral forces generated by F1 cars pulling their heads in the opposite direction to normal.
Most of the circuits currently in use are specially constructed for competition. The current street circuits are Monaco and Melbourne and Valencia, although races in other urban locations come and go (Las Vegas and Detroit, for example) and proposals for such races are often discussed – most recently London and Paris. Several other circuits are also completely or partially laid out on public roads, such as Spa-Francorchamps. The glamour and history of the Monaco race are the primary reasons why the circuit is still in use, since it is thought not to meet the strict safety requirements imposed on other tracks. Three-time World champion Nelson Piquet famously described racing in Monaco as "like riding a bicycle around your living room".
Circuit design to protect the safety of drivers is becoming increasingly sophisticated, as exemplified by the new Bahrain International Circuit, added in 2004 and designed – like most of F1's new circuits – by Hermann Tilke. Several of the new circuits in F1, especially those designed by Tilke, have been criticised as lacking the "flow" of such classics as Spa-Francorchamps and Imola. His redesign of the Hockenheim circuit in Germany for example, while providing more capacity for grandstands and eliminating extremely long and dangerous straights, has been frowned upon by many who argue that part of the character of the Hockenheim circuits was the long and blinding straights into dark forest sections. These newer circuits, however, are generally agreed to meet the safety standards of modern Formula One better than the older ones.
The most recent addition to the F1 calendar is Valencia[42] and Singapore (the latter set to be the host of the first night race in F1 history)[43] Abu Dhabi has been confirmed as the last race for the 2009 season.[44]
A Formula 1 Grand Prix will be held in India for the first time in 2010

Feeder series

2008-09-16T07:00:00.000-07:00

GP2 is the current main feeder series for F1 - every GP2 champion has gone on to race in F1.
For the most part F1 drivers start in Karting and then come up through traditional European single seater series like Formula Ford, Formula Renault, Formula 3, and finally GP2. The GP2 series started in 2005 and all three champions have gone on to race in F1. Before GP2, Formula Two and then Formula 3000 had filled the role of the last major "stepping stone" into F1. No F2, F3000 or GP2 champion has yet won the Formula One championship, however.[37] Drivers are not required to have competed at this level before entering Formula One. British F3 has long been considered one of the best places to spot F1 talent, with champions including Nigel Mansell, Ayrton Senna and Mika Häkkinen having moved straight from that series to Formula One. Again, though, it is possible to be picked earlier, as was the case with Kimi Räikkönen, who went straight from Formula Renault to an F1 drive.
American Championship Car Racing has also contributed to the Formula One grid. Champions Mario Andretti and Jacques Villeneuve, as well as Michael Andretti, Juan Pablo Montoya, Cristiano da Matta and Sébastien Bourdais have all moved to F1 from America, with varying degrees of success.
Other drivers have taken different paths to F1; Damon Hill raced motorbikes, and Michael Schumacher raced in sports cars, albeit after climbing through the junior single seater ranks. To race, however, the driver must hold an FIA Super Licence – ensuring that the driver has the requisite skills, and will not therefore be a danger to others. Some drivers haven't had the license when first signed to a F1 team. Kimi Räikkönen received the license despite having only 23 car races to his credit

Drivers

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The Formula One Drivers' Trophy.
Each driver is assigned a number. The previous season's champion is designated number 1, with his team-mate given number 2. Numbers are then assigned in order according to each team's position in the previous season's constructors' championship. The number 13 is not used.
There have been exceptions to this rule, such as in 1993 and 1994, when the current World Drivers' Champion (Nigel Mansell and Alain Prost, respectively) was no longer competing in Formula One. In this case the drivers for the team of the previous year's champion are given numbers 0 (Damon Hill, on both occasions) and 2 (Prost himself and Ayrton Senna – replaced after his death by David Coulthard and occasionally Nigel Mansell – respectively). The number 13 has not been used since 1976, before which it was occasionally assigned at the discretion of individual race organisers. Before 1996 only the world championship winning driver and his team generally swapped numbers with the previous champion – the remainder held their numbers from prior years, as they had been originally set at the start of the 1974 season. For many years, for example, Ferrari held numbers 27 and 28, regardless of their finishing position in the world championship.
Michael Schumacher holds the record for having won the most Drivers' Championships (seven). Jochen Rindt became the only posthumous World Champion after a fatal accident at the 1970 Italian Grand Prix.

Constructors

2008-09-16T06:57:00.000-07:00

Since 1984 Formula One teams have been required to build the chassis in which they compete, and consequently the terms "team" and "constructor" became more or less interchangeable. This requirement distinguishes the sport from series such as the IndyCar Series which allows teams to purchase chassis, and "spec series" such as GP2, which require all cars be kept to an identical specification.
The sport's 1950 debut season saw eighteen teams compete, but due to high costs many dropped out quickly. In fact, such was the scarcity of competitive cars for much of the first decade of Formula One that Formula Two cars were admitted to fill the grids. Ferrari is the only still-active team which competed in 1950.
Early manufacturer involvement came in the form of a "factory team" or "works team" (that is, one owned and staffed by a major car company), such as those of Alfa Romeo, Ferrari or Renault. After having virtually disappeared by the early 1980s, factory teams made a comeback in the 1990s and 2000s and now form half the grid with Ferrari, BMW, Renault, Toyota and Honda either setting up their own teams or buying out existing ones. Mercedes-Benz owns 40% of the McLaren team and manufactures the team's engines. Factory teams currently make up the top competitive teams; in mid-2008 factory teams occupied the top 5 positions in the Constructors' Championship. Ferrari holds the record for having won the most Constructors' Championships (fifteen).
Companies such as Climax, Repco, Cosworth, Hart, Judd and Supertec, which had no direct team affiliation, often sold engines to teams that could not afford to manufacture them. In the early years independently owned Formula One teams sometimes also built their engines, though this became less common with the increased involvement of major car manufacturers such as BMW, Ferrari, Honda, Mercedes-Benz, Renault and Toyota, whose large budgets rendered privately built engines less competitive. Cosworth was the last independent engine supplier, but lost its last customers after the 2006 season. Beginning in 2007 the manufacturers' deep pockets and engineering ability took over, eliminating the last of the independent engine manufacturers. It is estimated that the big teams spend €100 to €200 million ($125-$250 million) per year per manufacturer on engines alone.
In the 2007 season, for the first time since the 1984 rule, two teams used chassis built by other teams. Super Aguri started the season using a modified Honda Racing's RA106 chassis (used by Honda in the 2006 season), while Scuderia Toro Rosso used a modified Red Bull Racing RB3 chassis (same as the one used by Red Bull in the 2007 season). Such a decision did not come as a surprise because of spiraling costs and the fact that Super Aguri is partially owned by Honda and Toro Rosso is half owned by Red Bull. Formula One team Spyker raised a complaint against this decision, and other teams such as McLaren and Ferrari have officially confirmed that they support the campaign. Because of this use of other teams' chassis, the 2006 season could have been the last one in which the terms "team" and "constructor" were truly interchangeable. This attracted the Prodrive team to F1 to the 2008 season, where it intended to run a customer car. After not being able to secure a package from McLaren, Prodrive's intention to enter the 2008 season was dropped after Williams threatened legal action against them. Now, it seems that customer cars concept will be formally banned in 2010.
As of mid 2008, ten teams are on the grid, each fielding two cars.
Although teams rarely disclose information about their budgets, it is estimated that they range from US$66 million to US$400 million each.
Entering a new team in the Formula One World Championship requires a £25 million (about US$47 million) up-front payment to the FIA, which is then repaid to the team over the course of the season. As a consequence, constructors desiring to enter Formula One often prefer to buy an existing team: B.A.R.'s purchase of Tyrrell and Midland's purchase of Jordan allowed both of these teams to sidestep the large deposit and secure the benefits that the team already had, such as TV revenue.

Racing and strategy

2008-09-16T06:56:00.000-07:00

A Formula One Grand Prix event spans a weekend, beginning with two free practice sessions on Friday (except in Monaco, where Friday practices are moved to Thursday), and one free practice on Saturday. Additional drivers (commonly known as Third drivers) are allowed to run on Fridays, but only two cars may be used per team, requiring a race driver to give up their seat. A Qualifying session is held after the last free practice session. This session determines the starting order for the race.
The format of this qualifying session has been through several iterations since the 2003 season. Attempts were made to reinvigorate interest in the qualifying session by using a "one-shot" system in which each driver would take turns on an empty track to set their one and only time.
For the 2006 season a knockout qualifying system was introduced and remains in use, with some minor alterations, in 2008. The qualifying session is split into three phases. In the first phase, all twenty cars are permitted on the track for a twenty minute qualification session. Only their fastest time will count and drivers may complete as many laps as they wish. At the end of the first session, the slowest five cars are eliminated and will take no further part in qualifying. These cars will make up the last five grid positions in the order of their times.
The times for the fifteen remaining cars are reset for the next fifteen minute session. The slowest five cars will make up the grid in positions 11 to 15 in the order of their times set in this session.
The recorded fastest times for the ten remaining cars are then wiped in preperation for the final (ten minute) session referred to as the 'Pole Position Shootout'. At the end of this period, the cars will be arranged on the grid in positions one to ten in accordance to their fastest lap time. In the first two sessions, cars may run any fuel load and drivers knocked out after those sessions may refuel ahead of the race. However, the top-ten drivers must start the race with whatever fuel was left in the car at the end of the final qualifying session. For all the sessions, if a driver starts a timed lap before the chequered flag falls for the end of that session, their time will count even if they cross the finishing line well after the session has ended.
The race begins with a warm-up formation lap, after which the cars assemble on the starting grid in the order they qualified. If a driver stalls before the parade lap and the rest of the field pass him, then he must start from the back of the grid. If he manages to drive off and at least one car is behind him, he is permitted to retake his original position. A racer may also elect to start from pit-lane if he has any last minute problems with the car. If they choose to do this, they must wait for all cars to pass pit-lane before they may begin the race.
A light system above the track indicates the start of the race. The race distance is equal to the least number of complete laps which exceed a distance of 305 kilometres (190 mi) (although Monaco is 260 kilometres (160 mi)), and are limited to two hours. In practice they usually last about ninety minutes. Throughout the race, drivers may make one or more pit stops in order to refuel and change tyres. Teams are supplied with tyres exclusively from Bridgestone. Bridgestone have developed four tyre compounds of which they then select two for the teams to use at a given race event. Drivers must use both tyre compounds during a race which is hoped will bring more excitement to the sport. The softer of the available compounds for the weekend's tyres can be seen with a white ring around one of the grooves on the tyre itself.
When a driver comes round to lap another, the latter must move out of the way within three blue flags (waved by the trackside marshals), or face a penalty from the Stewards.
Various systems for awarding championship points have been used since 1950. Since 2003, at the end of the race the top eight drivers and their respective teams receive points on a 10-8-6-5-4-3-2-1 basis (the race winner receives ten points, the first runner-up eight, and so on). The winner of the two annual championships are the driver and the team who have accumulated the most points at the end of the season. In the case of a tie in points, the championship is awarded to the driver or team having the higher number of wins; if these are equal, second place finishes are considered, and so on

European non-championship racing

2008-09-16T06:52:00.000-07:00

European non-championship racing
In the early years of Formula One, before the world championship was established, there were around twenty races held from late Spring to early Autumn in Europe, although not all of these were considered significant. Most competitive cars came from Italy, particularly Alfa Romeo. After the start of the world championship these non-championship races continued. In the 1950s and 1960s, there were many Formula One races which did not count for the World Championship (e.g., in 1950, a total of twenty-two Formula One races were held, of which only six counted towards the World Championship). In 1952 and 1953, when the world championship was run for Formula Two cars, a full season of non-championship Formula One racing took place. Some races, particularly in the UK, including the Race of Champions, Oulton Park International Gold Cup and International Trophy, were attended by the majority of the world championship contenders. These became less common through the 1970s and 1983 saw the last non-championship Formula One race: The 1983 Race of Champions at Brands Hatch, won by reigning World Champion Keke Rosberg in a Williams Cosworth in a close fight with American Danny Sullivan.

Big business

2008-09-16T06:47:00.000-07:00

Big business (1981–2000)

Nigel Mansell's Williams FW10 from 1985.

Damon Hill's Williams FW18 from 1996. The FW18 was one of the most successful cars of the era.
Beginning in the 1970s, Bernie Ecclestone rearranged the management of Formula One's commercial rights; he is widely credited with transforming the sport into the billion dollar business it is today.[10][11] When Ecclestone bought the Brabham team in 1971 he gained a seat on the Formula One Constructors' Association and in 1978 became its President. Previously the circuit owners controlled the income of the teams and negotiated with each individually, however Ecclestone persuaded them to "hunt as a pack" through FOCA.[11] He offered Formula One to circuit owners as a package which they could take or leave. In return for the package almost all are required to surrender trackside advertising.[10]
The formation of the Fédération Internationale du Sport Automobile (FISA) in 1979 set off the FISA-FOCA war, during which FISA and its president Jean-Marie Balestre clashed repeatedly with FOCA over television revenues and technical regulations.[12] The Guardian said of FOCA that Ecclestone and Max Mosley "used it to wage a guerrilla war with a very long-term aim in view." FOCA threatened to set up a rival series, boycotted a Grand Prix and FISA withdrew its sanction from races.[10] The result was the 1981 Concorde Agreement which guaranteed technical stability, as teams were to be given reasonable notice of new regulations.[13] Although FISA asserted its right to the TV revenues, it handed the administration of those rights to FOCA.[citation needed]
FISA imposed a ban on ground effect aerodynamics in 1983.[14] By then, however, turbocharged engines, which Renault had pioneered in 1977, were producing over 700 bhp (520 kW) and were essential to be competitive. By 1986 a BMW turbocharged engine achieved a flash reading of 5.5 bar pressure, estimated to be "over 1300 bhp" (970 kW) in qualifying for the Italian Grand Prix. The following year power in race trim reached around 1,100 bhp (820 kW), with boost pressure limited to only 4.0 bar.[15] These cars were the most powerful open-wheel circuit racing cars ever. To reduce engine power output and thus speeds, the FIA limited fuel tank capacity in 1984 and boost pressures in 1988 before banning turbocharged engines completely in 1989.[16]
The development of electronic driver aids began in the 1980s. Lotus began to develop a system of active suspension which first appeared in 1982 on the F1 Lotus 91 and Lotus Esprit road car. By 1987 this system had been perfected and was driven to victory by Ayrton Senna in the Monaco Grand Prix that year. In the early 1990s, other teams followed suit and semi-automatic gearboxes and traction control were a natural progression. The FIA, due to complaints that technology was determining the outcome of races more than driver skill, banned many such aids for 1994. This led to cars that were previously dependent on electronic aids becoming very "twitchy" and difficult to drive (notably the Williams FW16), and many observers felt that the ban on driver aids was a ban in name only as they "have proved difficult to police effectively."[17]
The teams signed a second Concorde Agreement in 1992 and a third in 1997, which expired on the last day of 2007.[18]
On the track, the McLaren and Williams teams dominated the 1980s and 1990s, with Brabham also being competitive in the early part of the 1980s, winning two drivers' championships with Nelson Piquet. Powered by Porsche, Honda, and Mercedes-Benz, McLaren won sixteen championships (seven constructors', nine drivers') in that period, while Williams used engines from Ford, Honda, and Renault to also win sixteen titles (nine constructors', seven drivers'). The rivalry between racing legends Ayrton Senna and Alain Prost became F1's central focus in 1988, and continued until Prost retired at the end of 1993. Senna died at the 1994 San Marino Grand Prix after crashing into a wall on the exit of the notorious curve Tamburello, having taken over Prost's lead drive at Williams that year. The FIA worked to improve the sport's safety standards since that weekend, during which Roland Ratzenberger also lost his life in an accident during Saturday qualifying. No driver has died on the track at the wheel of a Formula One car since, though two track marshals have lost their lives, one at the 2000 Italian Grand Prix,[19] and the other at the 2001 Australian Grand Prix.[19]
Since the deaths of Ayrton Senna, Roland Ratzenberger and Gilles Villeneuve, the FIA has used safety as a reason to impose rule changes which otherwise, under the Concorde Agreement, would have had to be agreed upon by all the teams - most notably the changes introduced for 1998. This so called 'narrow track' era resulted in cars with smaller rear tyres, a narrower track overall and the introduction of 'grooved' tyres to reduce mechanical grip. There would be four grooves, on the front and rear - although initially three on the front tyres in the first year - that ran through the entire circumference of the tyre. The objective was to reduce cornering speeds and to produce racing similar to rain conditions by enforcing a smaller contact patch between tyre and track. This, according to the FIA, was to promote driver skill and provide a better spectacle.[citation needed]
Results have been mixed as the lack of mechanical grip has resulted in the more ingenious designers clawing back the deficit with aerodynamic grip - pushing more force onto the tyres through wings, aerodynamic devices etc - which in turn has resulted in less overtaking as these devices tend to make the wake behind the car 'dirty' preventing other cars from following closely, due to their dependence on 'clean' air to make the car stick to the track. The grooved tyres also had the unfortunate side effect of initially being of a harder compound, to be able to hold the groove tread blocks, which resulted in spectacular accidents in times of aerodynamic grip failure e.g. rear wing failures, as the harder compound could not grip the track as well.
Drivers from McLaren, Williams, Renault (formerly Benetton) and Ferrari, dubbed the "Big Four", have won every World Championship from 1984 to the present day. Due to the technological advances of the 1990s, the cost of competing in Formula One rose dramatically. This increased financial burden, combined with four teams' dominance (largely funded by big car manufacturers such as Mercedes-Benz), caused the poorer independent teams to struggle not only to remain competitive, but to stay in business. Financial troubles forced several teams to withdraw. Since 1990, twenty-eight teams have pulled out of Formula One. This has prompted former Jordan owner Eddie Jordan to say that the days of competitive privateers are over.[20]

The 'Garagistes' (1959–1980)

2008-07-20T21:11:00.000-07:00

The 'Garagistes' (1959–1980)

The first major technological development, Cooper's re-introduction of mid-engined cars (following Ferdinand Porsche's pioneering Auto Unions of the 1930s), which evolved from the company's successful Formula 3 designs, occurred in the 1950s. Australian Jack Brabham, World Champion in 1959, 1960 and 1966, soon proved the new design's superiority. By 1961, all regular competitors had switched to mid-engined cars.[7]
The first British World Champion was Mike Hawthorn, who drove a Ferrari to the title in 1958. However, when Colin Chapman entered F1 as a chassis designer and later founder of Team Lotus, British racing green came to dominate the field for the next decade. Between Jim Clark, Jackie Stewart, John Surtees, Jack Brabham, Graham Hill, and Denny Hulme, British teams and Commonwealth drivers won twelve world championships between 1962 and 1973.
In 1962, Lotus introduced a car with an aluminium sheet monocoque chassis instead of the traditional spaceframe design. This proved to be the greatest technological breakthrough since the introduction of mid-engined cars. In 1968, Lotus painted Imperial Tobacco livery on their cars, thus introducing sponsorship to the sport.[8]
Aerodynamic downforce slowly gained importance in car design from the appearance of aerofoils in the late 1960s. In the late 1970s Lotus introduced ground effect aerodynamics that provided enormous downforce and greatly increased cornering speeds (though the concept had previously been used on Jim Hall's Chaparral 2J in 1970). So great were the aerodynamic forces pressing the cars to the track, up to 5 g, that extremely stiff springs were needed to maintain a constant ride height, leaving the suspension virtually solid, depending entirely on the tyres for any small amount of cushioning of the car and driver from irregularities in the road surface.

Big business (1981–2000)
Beginning in the 1970s, Bernie Ecclestone rearranged the management of Formula One's commercial rights; he is widely credited with transforming the sport into the billion dollar business it is today.[10][11] When Ecclestone bought the Brabham team in 1971 he gained a seat on the Formula One Constructors' Association and in 1978 became its President. Previously the circuit owners controlled the income of the teams and negotiated with each individually, however Ecclestone persuaded them to "hunt as a pack" through FOCA.[11] He offered Formula One to circuit owners as a package which they could take or leave. In return for the package almost all are required to surrender trackside advertising.[10]
The formation of the Fédération Internationale du Sport Automobile (FISA) in 1979 set off the FISA-FOCA war, during which FISA and its president Jean-Marie Balestre clashed repeatedly with FOCA over television revenues and technical regulations.[12] The Guardian said of FOCA that Ecclestone and Max Mosley "used it to wage a guerrilla war with a very long-term aim in view." FOCA threatened to set up a rival series, boycotted a Grand Prix and FISA withdrew its sanction from races.[10] The result was the 1981 Concorde Agreement which guaranteed technical stability, as teams were to be given reasonable notice of new regulations.[13] Although FISA asserted its right to the TV revenues, it handed the administration of those rights to FOCA.[citation needed]
The FIA imposed a ban on ground effect aerodynamics in 1983.[14] By then, however, turbocharged engines, which Renault had pioneered in 1977, were producing over 700 bhp (520 kW) and were essential to be competitive. By 1986 a BMW turbocharged engine achieved a flash reading of 5.5 bar pressure, estimated to be "over 1300 bhp" (970 kW) in qualifying for the Italian Grand Prix. The following year power in race trim reached around 1,100 bhp (820 kW), with boost pressure limited to only 4.0 bar.[15] These cars were the most powerful open-wheel circuit racing cars ever. To reduce engine power output and thus speeds, the FIA limited fuel tank capacity in 1984 and boost pressures in 1988 before banning turbocharged engines completely in 1989.[16]
The development of electronic driver aids began in the 1980s. Lotus began to develop a system of active suspension which first appeared in 1982 on the F1 Lotus 91 and Lotus Esprit road car. By 1987 this system had been perfected and was driven to victory by Ayrton Senna in the Monaco Grand Prix that year. In the early 1990s, other teams followed suit and semi-automatic gearboxes and traction control were a natural progression. The FIA, due to complaints that technology was determining the outcome of races more than driver skill, banned many such aids for 1994. This led to cars that were previously dependent on electronic aids becoming very "twitchy" and difficult to drive (notably the Williams FW16), and many observers felt that the ban on driver aids was a ban in name only as they "have proved difficult to police effectively."[17]
The teams signed a second Concorde Agreement in 1992 and a third in 1997, which expired on the last day of 2007.[18]
On the track, the McLaren and Williams teams dominated the 1980s and 1990s, with Brabham also being competitive in the early part of the 1980s, winning two drivers' championships with Nelson Piquet. Powered by Porsche, Honda, and Mercedes-Benz, McLaren won sixteen championships (seven constructors', nine drivers') in that period, while Williams used engines from Ford, Honda, and Renault to also win sixteen titles (nine constructors', seven drivers'). The rivalry between racing legends Ayrton Senna and Alain Prost became F1's central focus in 1988, and continued until Prost retired at the end of 1993. Tragically, Senna died at the 1994 San Marino Grand Prix after crashing into a wall on the exit of the notorious curve Tamburello, having taken over Prost's lead drive at Williams that year. The FIA worked to improve the sport's safety standards since that weekend, during which Roland Ratzenberger also lost his life in an accident during Saturday qualifying. No driver has died on the track at the wheel of a Formula One car since, though two track marshals have lost their lives, one at the 2000 Italian Grand Prix,[19] and the other at the 2001 Australian Grand Prix.[19]
Since the deaths of Senna, Ratzenberger and Gilles Villeneuve, the FIA has used safety as a reason to impose rule changes which otherwise, under the Concorde Agreement, would have had to be agreed upon by all the teams - most notably the changes introduced for 1998. This so called 'narrow track' era resulted in cars with smaller rear tyres, a narrower track overall and the introduction of 'grooved' tyres to reduce mechanical grip. There would be four grooves, on the front and rear - although initially three on the front tyres in the first year - that ran through the entire circumference of the tyre. The objective was to reduce cornering speeds and to produce racing similar to rain conditions by enforcing a smaller contact patch between tyre and track. This, according to the FIA, was to promote driver skill and provide a better spectacle.[citation needed]
Results have been mixed as the lack of mechanical grip has resulted in the more ingenious designers clawing back the deficit with aerodynamic grip - pushing more force onto the tyres through wings, aerodynamic devices etc - which in turn has resulted in less overtaking as these devices tend to make the wake behind the car 'dirty' preventing other cars from following closely, due to their dependence on 'clean' air to make the car stick to the track. The grooved tyres also had the unfortunate side effect of initially being of a harder compound, to be able to hold the groove tread blocks, which resulted in spectacular accidents in times of aerodynamic grip failure e.g. rear wing failures, as the harder compound could not grip the track as well.[citation needed]
Drivers from McLaren, Williams, Renault (formerly Benetton) and Ferrari, dubbed the "Big Four", have won every World Championship from 1984 to the present day. Due to the technological advances of the 1990s, the cost of competing in Formula One rose dramatically. This increased financial burden, combined with four teams' dominance (largely funded by big car manufacturers such as Mercedes-Benz), caused the poorer independent teams to struggle not only to remain competitive, but to stay in business. Financial troubles forced several teams to withdraw. Since 1990, twenty-eight teams have pulled out of Formula One. This has prompted former Jordan owner Eddie Jordan to say that the days of competitive privateers are over.[20]

The manufacturers' return (2000–2007)

A sign displaying that the safety car (SC) is deployed. Safety is of paramount concern in contemporary F1.
Michael Schumacher and Ferrari won an unprecedented five consecutive drivers’ championships and six consecutive constructors’ championships between 1999 and 2004. Schumacher set many new records, including those for Grand Prix wins (91), wins in a season (13 of 18), and most drivers' championships (7).[21] Schumacher's championship streak ended on September 25, 2005 when Renault driver Fernando Alonso became Formula One’s youngest champion. In 2006, Renault and Alonso won both titles again. Schumacher retired at the end of 2006 after sixteen years in Formula One.
During this period the championship rules were frequently changed by the FIA with the intention of improving the on-track action and cutting costs.[22] Team orders, legal since the championship started in 1950, were banned in 2002 after several incidents in which teams openly manipulated race results, generating negative publicity, most famously by Ferrari at the 2002 Austrian Grand Prix. Other changes included the qualifying format, the points scoring system, the technical regulations and rules specifying how long engines and tyres must last. A 'tyre war' between suppliers Michelin and Bridgestone saw lap times fall, although at the 2005 United States Grand Prix at Indianapolis seven out of ten teams did not race when their Michelin tyres were deemed unsafe for use. During 2006, Max Mosley outlined a ‘green’ future for Formula One, in which efficient use of energy would become an important factor.[23] And the tyre war ended, as Bridgestone became the sole tyre supplier to Formula One for the 2007 season.
Since 1983, Formula One had been dominated by specialist race teams like Williams, McLaren and Benetton, using engines supplied by large car manufacturers like Mercedes-Benz, Honda, Renault and Ford. Starting in 2000 with Ford’s creation of the largely unsuccessful Jaguar team, new manufacturer-owned teams entered Formula One for the first time since the departure of Alfa Romeo and Renault at the end of 1985. By 2006, the manufacturer teams – Renault, BMW, Toyota, Honda and Ferrari – dominated the championship, taking five of the first six places in the constructors' championship. The sole exception was McLaren, which is part-owned by Mercedes Benz. Through the Grand Prix Manufacturers Association (GPMA) they negotiated a larger share of Formula One’s commercial profit and a greater say in the running of the sport.[citation needed]

[edit] Outside the World Championship
Currently, the terms "Formula One race" and "World Championship race" are effectively synonymous; since 1984, every Formula One race has counted towards the World Championship, and every World Championship race has been to Formula One regulations. This has not always been the case, and in the earlier history of Formula One many races took place outside the world championship.[citation needed]

[edit] European non-championship racing
In the early years of Formula One, before the world championship was established, there were around twenty races held from late Spring to early Autumn (Fall) in Europe, although not all of these were considered significant. Most competitive cars came from Italy, particularly Alfa Romeo. After the start of the world championship these non-championship races continued. In the 1950s and 1960s, there were many Formula One races which did not count for the World Championship (e.g., in 1950, a total of twenty-two Formula One races were held, of which only six counted towards the World Championship). In 1952 and 1953, when the world championship was run for Formula Two cars, a full season of non-championship Formula One racing took place. Some races, particularly in the UK, including the Race of Champions, Oulton Park International Gold Cup and International Trophy, were attended by the majority of the world championship contenders. These became less common through the 1970s and 1983 saw the last non-championship Formula One race: The 1983 Race of Champions at Brands Hatch, won by reigning World Champion Keke Rosberg in a Williams Cosworth in a close fight with American Danny Sullivan.[2]

[edit] South African Formula One championship
Main article: South African Formula One Championship
South Africa's flourishing domestic Formula One championship ran from 1960 through to 1975. The frontrunning cars in the series were recently retired from the world championship although there was also a healthy selection of locally built or modified machines. Frontrunning drivers from the series usually contested their local World Championship Grand Prix, as well as occasional European events, although they had little success at that level.[citation needed]

Formula One

2008-07-20T21:08:00.000-07:00

Formula One

Formula One, abbreviated to F1, and in modern times also known as Grand Prix motor racing, is the highest class of open wheeled auto racing defined by the Fédération Internationale de l'Automobile (FIA), motorsport world's governing body. The "formula" in the name refers to a set of rules to which all participants and cars must conform. The F1 world championship season consists of a series of races, known as Grands Prix, held usually on purpose-built circuits, and in a few cases on closed city streets, the most famous of which is the Monaco Grand Prix in Monte Carlo. The results of each race are combined to determine two annual World Championships, one for drivers and one for constructors.
The cars race at high speeds, up to 360 km/h (225 mph), and are capable of pulling up to 5g in some corners. The performance of the cars is highly dependent on electronics, aerodynamics, suspension and tyres. The formula has seen many evolutions and changes through the history of the sport.
Europe is Formula One's traditional centre; all of the teams are based there and around half the races take place there. In particular the United Kingdom has produced the most number of Drivers' Champions (12), and the vast majority of Constructors' Champions (32). However, its scope has expanded significantly in recent years and Grands Prix are now held all over the world. Events in Europe and the Americas have been dropped in favour of new ones in Bahrain, China, Malaysia and Turkey, with Singapore scheduled to hold the first night race in 2008 and India being added to the schedule starting in 2010. Of the eighteen races in 2008, nine are outside Europe.
It is a massive television event, with millions of people watching each race worldwide. As the world's most expensive sport,[citation needed] its economic effect is significant, and its financial and political battles are widely observed. On average about 55 million people all over the world watch Formula One races live. Its high profile and popularity makes it an obvious merchandising environment, which leads to very high investments from sponsors, translating into extremely high budgets for the constructor teams. Several teams have gone bankrupt or been bought out by other companies since 2000.
The sport is regulated by the FIA. Formula One's commercial rights are vested in the Formula One Group.

History

The Formula One series has its roots in the European Grand Prix Motor Racing (q.v. for pre-1947 history) of the 1920s and 1930s. The "formula" is a set of rules which all participants and cars must meet. Formula One was a new formula agreed after World War II in 1946, with the first non-championship races being held that year. A number of Grand Prix racing organisations had laid out rules for a World Championship before the war, but due to the suspension of racing during the conflict, the World Drivers' Championship was not formalised until 1947. The first world championship race was held at Silverstone, United Kingdom in 1950. A championship for constructors followed in 1958. National championships existed in South Africa and the UK in the 1960s and 1970s. Non-championship Formula One races were held for many years but, due to the rising cost of competition, the last of these occurred in 1983.
The sport's title, Formula One, indicates that it is intended to be the most advanced and most competitive of the FIA's racing formulae.[citation needed]

The return of racing (1950–1958)

Juan Manuel Fangio drove this Alfa Romeo 159 to the title in 1951.
The first Formula One World Championship was won by Italian Giuseppe Farina in his Alfa Romeo in 1950, barely defeating his Argentine teammate Juan Manuel Fangio. However Fangio won the title in 1951, 1954, 1955, 1956 & 1957, his streak interrupted after an injury by two-time champion Alberto Ascari of Ferrari. Although the UK's Stirling Moss was able to compete regularly, he was never able to win the World Championship, and is now widely considered to be the greatest driver never to have won the title.[3][4] Fangio, however, is remembered for dominating Formula One's first decade and has long been considered the "grand master" of Formula One.[citation needed]
The period was dominated by teams run by road car manufacturers - Alfa Romeo, Ferrari, Mercedes Benz and Maserati - all of whom had competed before the war. The first seasons were run using pre-war cars like Alfa's 158. They were front engined, with narrow treaded tyres and 1.5 litre supercharged or 4.5 litre naturally aspirated engines. The 1952 and 1953 world championships were run to Formula Two regulations, for smaller, less powerful cars, due to concerns over the number of Formula One cars available.[5] When a new Formula One, for engines limited to 2.5 litres, was reinstated to the world championship in 1954, Mercedes-Benz introduced the advanced W196, which featured innovations such as desmodromic valves and fuel injection as well as enclosed streamlined bodywork. Mercedes won the drivers championship for two years, before withdrawing from all motorsport in the wake of the 1955 Le Mans disaster.