Amid rumours that Formula One's new owner Liberty Media is set to impose a new budget cap on team spending in the sport in a bid to improve competition, Ferrari president Sergio Marchionne has said that he doesn't believe formal spending restrictions can ever work.
"The reality is Formula One is an extremely expensive sport," he told The Sun newspaper this week.
"Despite all these interventions by the FIA to try to limit spending, the teams have found other ways to spend," he pointed out.
“I accept the goal of reducing costs but much depends on us," he added. "I don’t believe a budget cap can work."
Despite a major team's budget believed to be approaching something in the region of £400 million per annum, Ferrari has still struggled for results in recent years. It endured a winless 2016 season despite the best efforts of Sebastian Vettel and Kimi Raikkonen, and ended the year in third place in the constructors championship behind Red Bull Racing.
"If the budget was used well or badly, I don’t know," he admitted. "When I look at old reports — ten years and even further back — I deduce that Ferrari has never held back when it comes to spending.
"If I look at the last four of five years, we haven’t saved a euro, we have simply redistributed our spending to other areas.
"This is the old problem for all those who try to impose limits on car development: if areas are left open, spending concentrates in this area," Marchionne added.
"In principle, [a spending cap] is very noble, but the effect never ends up giving the necessary results."
F1i's Chris Medland sits down with Red Bull boss Christian Horner
2016 team-by-team review: Part one
2016 team-by-team review: Part two
Keep up to date with all the F1 news via Facebook and Twitter
Helmut Marko believes that Red Bull and Max Verstappen are unlikely to challenge for victory…
Automotive giant General Motors is reportedly back in the game as a potential entrant in…
The opening day of running at the Las Vegas GP was a smooth but chilly…
Williams is continuing to fight uphill battles this weekend in Las Vegas as a knock-on…
It was a solid start to the Las Vegas weekend for Ferrari with Carlos Sainz…
Lando Norris didn’t hold back in his assessment of McLaren’s performance on the opening day…