Leasedrive Velo Blog

Roddy Graham, Commercial Director

What a delight to see a “fledgling”, virtually sponsor-less newcomer take on the establishment at the highest level of motor sport and prevail. I, of course, refer to Brawn F1.

The team, born out of the huge Honda F1 operation, barely made it to the grid in Australia. It only did one pre-season test in Barcelona before arriving in Melbourne and, against all odds, swept all before it with a magnificent one-two finish.

Malaysia saw more of the same with Jenson Button winning again and, while he had to be content with third place on the podium in China, in the first real test for the team the Brit, who so nearly joined the dole queue in February, secured the greatest victory of his career last weekend.

So, besides, rejoicing in the fact that all the Grand Prix held so far this year have been won by new teams, what can we learn from the season so far?

First, you don’t need bucket loads of money to win.

Second, you need the right people at the helm to steer the cars and the team to victory.

Third, you need a talented team of individuals working together as a cohesive unit. Sound familiar for good business practice?

After Bahrain, Ross Brawn admitted they had no spare parts left. The cupboard was empty. For the first four Grand Prix of the season, the team had survived using just two chassis, a few spare bits and pieces and the bare minimum of sponsorship. Virgin reportedly has only contributed £175,000 so far, which would just about pay for a steering wheel and front and rear wings!

An announcement on future support is due at the next round in Barcelona.

Brawn has however stated that more car development can be expected in Spain.

Lesson one: you can get by on the minimum essential resources but you must nevertheless invest for the future.

What do Brawn and Red Bull have in common?

Apart from being the only teams to have won this season, they have top men at the helm and top drivers. Some of the shrewdest technical brains around in F1 are Ross Brawn and Adrian Newey. No coincidence then that they lead the field at the moment.

Ross Brawn has an awesome pedigree in World Sportscars and F1 and was the mastermind behind Michael Schumacher’s record seven Driver’s World Championship titles.

Honda brought him on board to turn their fortunes around and, with wholesale rule changes for this year, he quickly abandoned work on last year’s dog to concentrate on this year’s design. He knew when to cut his losses.

Jenson Button drives as smooth as silk and Rubens Barrichello may be the oldest in the field and hold the record for most Grand Prix starts but he is no slouch. He out-qualified his teammate last year for a start.

Lesson two: you need top people with a good mix of experience to steer the organisation to success.

Brawn GP is the name on the nosecone. Brawn Grand Prix is the entrant. Brawn is the only major name appearing on driver and team overalls. But does Ross Brawn, the man in overall charge, steal the limelight? No, he’s a team player. After the podium in Melbourne, a different member of the team has been nominated each time to collect the constructor’s trophy. He recognises the contribution of talented loyal employees.

Lesson three: you need talent in a team and you need to engender team spirit so that everyone pulls in the same direction.

So technical advancements are not the only things handed down from F1.

Lessons in business management can be learned too!

Roddy Graham, Commercial Director

Next week we’ll find out whether the Government has done its homework over scrappage.

Word on the street is that it will finally introduce a scheme, which will kick-start new car sales. As we all know, such schemes have worked wonders on the Continent, especially Germany.

However, the devil is in the detail. Leaks suggest that buyers of new cars and those up to one-year-old will receive a £2000 cash hand-out when trading in a car nine years or older.

All great news for dealers and short-term rental car companies, not so good for leasing companies, as residuals on three- and four-year-old cars may be impacted if buyers who normally buy these cars are tempted by the cash incentive to trade up to an even younger model.

Many of the initial calls for the introduction of a scrappage scheme were prompted by a desire to assist the domestic vehicle manufacturing industry and the wider automotive supplier base. But with British-made cars accounting for only around 15% of new car sales, that argument falls flat on its face. Such a scheme would assist foreign car manufacturers and worsen our balance of payments as a result.

Then there was the green argument. Taking nine-year-old cars and older off the street would benefit the environment. Realistically, the percentage gain on CO2 emissions may not outweigh the damage to the environment of producing the replacement vehicle. OK, in all likelihood, it’s already been produced, but you get my drift.

The detail will be vitally important if a scrappage scheme is to make a real impact. What should be introduced?

Well I believe it could be tackled in one of two ways. The first, a £2000 ceiling for pre-2000 cars traded in against a new, one-, two- or three-year-old car with £2000 offset against a new one, £1500 against a one-year-old, £1000 against a two-year-old and £500 against a three-year-old.

The second, £2000 offset against a 200+ g/km vehicle traded in for a 160g/km or lower vehicle aged three years or less, £1500 offset against a 180 – 199g/km for a 150g/km or lower vehicle aged three years or less, £1000 offset against a 160 – 179g/km for a 140g/km or lower vehicle aged three years or less and a £500 bonus for all bought vehicles with a CO2 emission of 120 g/km or less irrespective of age.

My favoured option is the second as it has the greener credentials. Any thoughts?

As you can see, whatever is launched, the devil is indeed in the detail. I just hope the Government will do its homework thoroughly.

Mind you, given its past track record, it’ll probably be another hastily cobbled-together package missing a golden opportunity to make a real impact with only car dealers rubbing their hands with glee.

Roddy Graham, Commercial Director

Sleaze and MPs seem to go hand in hand.

It’s probably always been the case but has come more into the public spotlight in recent times.

First up for public flagellation were members of the John Major Conservative Cabinet. Served up almost as a side order was the dull looking Prime Minister, whose colleague Edwina Currie revealed he had carried on an affair with her for a number of years.

And so it has piled up through the Blair years to encompass the Brown ones. Latest episode, and tip of the iceberg, the £10 expenses claim by a presumably unwitting Home Secretary for two porno films watched by her ‘lonely’ husband. That’s on top of the long-running row over her expenses for a family home in Redditch, when she stated her main residence was her sister’s home where she is a ‘lodger.’ She claimed £22,948 in second-home allowances for her family home in the Midlands last year!

Second-home allowances are the powder keg when it comes to MPs’ expenses and need sorting sooner rather than later. As Lib Dem MP, Sarah Teather stated, her constituents would ask what planet she was living on if she claimed for a second home, living only half-an-hour by tube from Westminster.