Ferrari in financial trouble

Ferrari have revealed that they wish to cut costs drastically in order for Formula 1 to survive. Ferrari have never been ones to demand the reduction of budgets and it may suggest that Ferrari is in some sort of trouble.

Ferrari's parent company Fiat has been in major financial difficulties for some time and this may be taking its toll on Ferrari itself. Despite Ferrari's massive income from their numerous marketing endeavors, one must wonder why Ferrari is suddenly calling for a reduction in costs. Ross Brawn had this to say about cost cutting in Formula 1:

"We need to make sure $100m is a more than adequate budget to compete and win in F1."