Cost (reduction in cost to manufacturers)

[mycadcae]

Cost
Agreement has been reached on a significant reduction in the price of power unit supply to customer teams and a reduction in cost to manufacturers over the coming years.

- In 2017 the power unit price for customer teams will be reduced by €1m per season compared to 2016.

- From 2018, the annual supply price will be reduced by a further €3m.

- Cost reduction on power units will be driven by changes to the Sporting and Technical regulations in 2017 and 2018, with a progressive reduction of the number of power unit elements per driver per season.

source skysports

[mrluke]

F1 is going to end up being a slower shorter version of WEC.

Lets see if we can make a PU last the whole season....great.

[FatherLuke]

This is good to hear, definitely.

[drumstickmen424]

Cost
Agreement has been reached on a significant reduction in the price of power unit supply to customer teams and a reduction in cost to manufacturers over the coming years.

- In 2017 the power unit price for customer teams will be reduced by €1m per season compared to 2016.

- From 2018, the annual supply price will be reduced by a further €3m.

- Cost reduction on power units will be driven by changes to the Sporting and Technical regulations in 2017 and 2018, with a progressive reduction of the number of power unit elements per driver per season.

source skysports

very nice

[bill shoe]

- Cost reduction on power units will be driven by changes to the Sporting and Technical regulations in 2017 and 2018, with a progressive reduction of the number of power unit elements per driver per season.

Noooooo! F1 engine manufacturers spend whatever they can justify in terms of marketing value, and they charge customer teams whatever they think the market will bear. The price of a customer engine supply has no particular relation to the cost of supplying it. Manufacturers agreed to a series of smaller price changes to prevent larger price changes. The justification for price changes in press releases may as well be the phase of the moon.

EDIT: Ha, I'm getting bent out of shape about an old-ish thread. But still. Noooooo!

[zac510]

I used to think like that but in F1 there is far too much of a rich-poor divide to simply allow the free market forces to work. It's too volatile , because there are too few teams and too few engine suppliers. F1 can't afford to lose an engine supplier and 1-2 teams just to uphold a moral argument that it's a free market.
Even in massive markets like the stock market with big volumes of trades and loads and loads of publicly listed information there are still terrible inefficiencies borne out in bubbles and crashes so we need to have regulations to control the risk.