redheron12
Regular
306 messages
joined Aug 2008
While I’m not usually one to defend MS and I tend to agree with Q-master, I think they missed the mark this time—honestly, every suggestion being floated right now is just nonsense, much like what Elizabeth Hughes said!
In my view, the real driver behind the contract reduction is a simple lack of cash—specifically, the fact that Fiat, as the lead entity at Ferrari, is facing serious struggles. It's similar to seeing mass layoffs at a massive steel mill in the Midwest; they're patching holes, canceling certain models or development phases, and slashing budgets. It probably finally dawned on someone that it doesn't look good to hand MS such a massive paycheck while simultaneously laying off 6,000 workers. They likely decided to trim Schumacher's pay slightly just so they could tell the staff, "Look, even Schumacher is taking a hit, so stop complaining and wait your turn." Besides, MS will probably bridge the gap between the old and new contract through sponsors and endorsements—so he won't actually lose out.
It feels to me like this is just a small precursor to what's coming for the entire Italian auto industry—and by extension, Ferrari—which is total collapse. They’ve simply fallen behind technologically; their cars are stunning from a design standpoint, but in terms of pure build quality, they lag behind the Japanese and Germans. To make matters worse, their production costs are significantly higher than everyone else's.
This might sound a bit dramatic or overstretched, but if you look back at the corporate collapses here in the US, it turns out the biggest losers often manipulated their numbers to look like winners—but you can only do that for so long. And frankly, the Italians are far more cunning manipulators than Americans (though they certainly do it with style), so it seems highly probable that the situation at Fiat is much grimmer than reported. Plus, how is the war in Iraq going to impact all of this?
Regardless, it looks like better days are ahead for McLaren and Williams.