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MOTORSPORTMARKET RESEARCH

REPORT

FRANCE

2004

PREPARED BY

PREPARED FOR

MARKET RESEARCHREPORT

FRENCH

MOTORSPORT INDUSTRY ASSOCIATION

T E N Y E A R S O F A C H I E V E M E N T

1 9 9 4 - 2 0 0 4

FOREWORD

The Motorsport Industry Association (MIA) was founded in 1994 and quickly established its mission to ensure long-termcompetitive advantage for motorsport and high-performance engineering companies. With 300 members, the MIA is nowrecognised as the industry’s leading trade body with a host of activities, events, initiatives and support designed to benefitand develop the motorsport industry.

The MIA is especially committed to providing the UK’s Motorsport Valley companies with a distinct business advantagethrough the provision of cutting edge market research. To date, the MIA has already commissioned a number of keymotorsport market reports; principally the National Survey of Motorsport Engineering and Services (2000), the USAMotorsport and Performance Engineering Market Research Report (2002) and the Gulf Region Report (2004). These seminalreports have added to the wide collection of research already available on the MIA’s motorsport research website.www.motorsportresearch.com

The European motorsport markets of France, Germany and Italy represent a considerable share of the global motorsportindustry. This series of business reports, supported by Shell, identify the key advantages available to UK motorsportcompanies within these markets and examines potential opportunities. These will enable the UK motorsport industry toreinforce it’s position as the global leader and develop further business to strengthen it’s place at the forefront of this sector.

Chris AylettChief Executive of the Motorsport Industry Association

RESEARCHERS

PROFESSOR MARK JENKINS

Mark Jenkins is Professor of CompetitiveStrategy and Deputy Director of Researchat Nottingham University BusinessSchool. Prior to joining Nottingham heheld positions at Cranfield School ofManagement, Massey Ferguson Ltd andthe Lex Service Group. His teaching andconsulting activities focus on the areas ofcompetitive strategy, knowledgemanagement and innovation. He is theauthor of a number of books on strategicmanagement issues, has publishednumerous journal articles and is on theeditorial boards of Long Range Planning,Organization Studies and the EuropeanJournal of Marketing. He is currentlyresearching the role of knowledge andinnovation in the development of FormulaOne motorsport.

He is also co-author of the forthcoming‘Motorsport Going Global: TheChallenges Facing the Worlds MotorsportIndustry’.

[email protected]

DR NICK HENRY

Dr. Nick Henry has extensive experienceof economic and industrial researchextending well over 15 years and is aleading expert on the UK and worldmotorsport industry. He shares his role atMotorsport Research Associates with aposition in GHK Consulting Ltd and as aReader in the Centre for Urban andRegional Development Studies,University of Newcastle. In 1997 hecompleted a widely publicisedgovernment (ESRC) funded study of theUK motorsport industry that included theidentification and systematic investigationof Motorsport Valley. He is the author ofnumerous academic, consultancy andpress articles on the industry including ‘InPole Position: Motor Sport Success inBritain and Its Lessons for the World’sMotor Industry’, 1999, EuromotorReports, Ludvigsen Associates Ltd,London. Nick was the Research Directorfor the MIA National Survey of MotorsportEngineering and Services 2000 and, in2002-03, acted as research adviser to theDTI Motorsport Competitiveness Panel,co-chaired by the Secretary of State. Nickhas acted as Project Director for all ofMotorsport Research Associates’ marketresearch activity and is lead author of theforthcoming ‘Motorsport Going Global:The Challenges Facing the WorldsMotorsport Industry’, published byPalgrave MacMillan.

[email protected]

DR TIM ANGUS

Dr. Tim Angus, Consultant, completed aPhD on the Italian Motorsport Industry in2000. He worked as part of the researchteam on The National Survey ofMotorsport Engineering and Services2000 and was responsible for theinternational benchmarking of themotorsport industry undertaken for theDTI by Motorsport Research Associates.Tim was Research Manager for theGermany, France and Italy Motorsportand Performance Engineering MarketResearch after successfully completingthe role for the USA Motorsport andPerformance Engineering MarketResearch Report in 2002 and‘Motorsport Northamptonshire’ producedin 2003.

He is also co-author of the forthcoming‘Motorsport Going Global: TheChallenges Facing the WorldsMotorsport Industry’.

[email protected]

5

Study Aims and Objectives 7

Research Design 8

Stage One Scale, Scope and Potential of the French Motorsport and Performance Engineering Market 9-28

Section 1 Value of the French Motorsport and Performance Engineering Market 9-12

1.1.1 Section Overview 91.1.2 Method of segment value calculation 101.1.3 Future potential of the French market 101.1.4 A general overview of French market trends 11-12

Section 2 The French Market Segments 13-252.1 Single Seater Racing 132.1.1 Overview 132.1.2 Market Trends 142.1.3 The UK’s position in the Single Seater

segment 14

2.2 Saloon Racing 152.2.1 Overview 152.2.2 Market Trends 162.2.3 The UK’s position in the Saloon Racing

segment 16

2.3 Drag Racing 172.3.1 Overview 172.3.2 Market Trends 172.3.3 The UK’s position in the

Drag Racing segment 17

2.4 Historic Motorsport 172.4.1 Overview 172.4.2 Market Trends 182.4.3 The UK’s position in the Historic

Motorsport segment 18

2.5 Rallying 192.5.1 Overview 192.5.2 Market Trends 192.5.3 The UK’s position in the Rallying segment 19

2.6 Off Road (incl. Rallycross) 202.6.1 Overview 202.6.2 Market Trends 202.6.3 The UK’s position in the Off Road segment 20

2.7 Sportscar Racing 212.7.1 Overview 212.7.2 Market Trends 222.7.3 The UK’s position in the Sportscar

Racing segment 22

2.8 Karting 232.8.1 Overview 232.8.2 Market Trends 232.8.3 The UK’s position in the Karting segment 23

2.9 Speed Events 242.9.1 Overview 242.9.2 Market Trends 242.9.3 The UK’s position in the Speed

Event segment 24

2.10 French OEM Performance engineering 252.10.1 Overview 252.10.2 Market Trends 252.10.3 The UK’s position in the French OEM

Performance engineering segment 25

Section 3 The French Motorsport Supply Chain 26

Section 4 Doing Business with France 26

Section 5 Selecting Niches of Business Opportunity for the UK Motorsport and Performance Engineering Sector 27-28

Stage Two The French Motorsport and Performance Engineering Market – Niches of Business Opportunity for UK companies 29-34

Section 1 Sportscar/GT Teams 29Section 2 Supertourisme Teams 32

Appendices

One Statistics on Motorsport in France 36

Two Decision makers and OEM Influence 37

Three Examples of Indigenous and Overseas Suppliers in the French Market 38-39

Four Employment figures for a sample of French motorsport and performance engineering firms 40

CONTENTS

6

LIST OF TABLES

No. Page

1 Objectives of the study 7

2 The French Market Segment Values in 2003 10

3 French Market Trends 11

4 Overview of the Single Seat segment 13

5 French, or French-based, Single Seater Series 13

6 Overview of the Saloon Racing segment 15

7 French, or French-based, Saloon Racing Series 15

8 Overview of the Drag Racing segment 17

9 Overview of the Historic segment 17

10 Overview of the Rallying segment 19

11 Overview of the Off road segment 20

12 Overview of the Sportscar Racing segment 21

13 French, or French-based, Sportscar Racing Series 21

14 Overview of the Karting segment 23

15 Overview of the Speed Event segment 24

16 Overview of the OEM Performance engineering segment 25

17 Core UK Competences and

French market segments 27

18 Summary Table of French Niche Possibilities for UK companies 27

19 SWOT Analysis of UK Motorsport

and Performance Engineering in the 28

French Market

LIST OF DIAGRAMS

No. Page

1 Turnover Value of French Motorsport and Performance engineering,

by Market Segment in 2003 9

2 Future Potential of French Motorsport and

Performance Engineering Market 10

3 Core UK Component Competences and

French Sportscar/ GT End User Usage Rates 29

4 Most Popular Source of Component Supply

for French Sportscar/GT End Users 29

5 Core UK Testing and Development Services Competences and French Sportscar/GT

End User Usage Rates 30

6 Supplier Rating: Sportscar/GT Teams 30

7 What prompts you to Buy New

Components/Services?: Sportscar/GT Teams 30

8 What Supplier Qualities are the End

Users looking for?; Sportscar/GT Teams 31

9 Capability of UK Companies already in the Sportscar/GT Segment 31

10 Best Way for UK Companies to Supply

the Market in the Sportscar/GT Segment 31

11 Core UK Component Competences and

French Supertourisme End User Usage Rates 32

12 Most Popular Source of Component Supply

for French Supertourisme End Users 32

13 Supplier Rating: Supertourisme Teams 33

14 What Prompts you to Buy New Components?: Supertourisme Teams 33

15 What Supplier Qualities are the

End Users looking for?; Supertourisme Teams 33

16 Capability of UK Companies already in the Supertourisme Segment 34

17 Best Way for UK Companies to Supply the

Market in the Supertourisme Segment 34

CONTENTS

7STUDY AIMS AND OBJECTIVES

Motorsport Research Associates werecontracted by the MIA to undertakeresearch on the French motorsport andperformance engineering market. The MIAwishes to identify business opportunitiesin France for companies in the UKmotorsport, performance engineering andmotorsport services sector.

‘Motorsport’ is defined for the purposes ofthis report as competitions involving 4wheeled vehicles. These competitionsutilise similar machinery on a frequentbasis on designated tracks and circuits.These machines include, for example,karts, historic cars, single-seater racingcars like Formula 3 and Formula Ford,Touring cars, rallying, rallycross, IRL andFormula 1.

‘Performance engineering’, by contrast, isdefined as a more generic engineeringterm representing high-value added, low-volume manufacturing, through thecombined application of high technologyengineering disciplines and creativedesign. In this sense, motorsport can beseen as the public brand of performanceengineering.

The aims of this study are:

• to provide members of the MIA, and others operating in this sector, with an overview of the Scale, Scope and Potential of the French Motorsport and Performance engineering Market.

• to identify potential Niches of Business Opportunity for UK Companies.

The objectives of the study are listed inTable 1, along with their fulfilment withinthe report.

Table 1: Objectives of the study

MIA Objectives Objective fulfilled in

1 Estimate the Size of the French Stage One Section 1.1Motorsport and Performance engineering Market

2 Establish the French Motorsport and Stage One Section 2Performance engineering Market Segments

3 Establish the French Motorsport and 1 Overview – Stage One Section 1.1.4Performance Engineering Market 2 Individual Market Segments – seeTrends ‘Market Trends’ section on each

segment of Stage One Section 23 Table 3

4 Identify Key French Motorsport and 1 Suppliers to the Individual Market Performance engineering Suppliers Segments – see ‘The UK’s position

in...’ section on each segment of Stage One Section 2

2 Appendix Three

5 Identify Key French Motorsport and 1 General Overview – see ‘Overview’Performance engineering End Users section on each segment of Stage One

Section 2 2 Stage Two – The French Motorsport

and Performance engineering Market – Niches of Business Opportunity

6 Evaluate the French Motorsport and Stage One – Section 3Performance engineering Supply Chain

7 Investigate French Motorsport and Stage One – Section 4Performance Engineering BusinessPractice

8RESEARCH DESIGN

Stage 1

SCALE, SCOPE AND POTENTIAL OFTHE FRENCH MOTORSPORT ANDPERFORMANCE ENGINEERINGMARKET

The aim of Stage One is to provide acomprehensive overview of the Frenchmotorsport and performance engineeringmarketplace. Firstly, it identifies, andprovides an overview of each of themarket segments in the Frenchmotorsport and performance engineeringmarketplace. Secondly, it identifies themarket trends in each segment and theUK motorsport and performanceengineering industry’s market positionwithin those segments. Thirdly, Stage Oneprovides a general overview of businessculture and the supply chain structure inthe French motorsport and performanceengineering industry. Lastly, this stageidentifies potential niches of businessopportunity for consideration in Stage Twoof the research.

The information for Stage One wasgathered by means of desk and field-based research. An ‘Expert Panel’comprised of academics, consultants andindustry members met to decide on theorganisations and personnel to becontacted for interview, in order that thewidest possible spread of information onthe French market could be gathered. TenKey Informant interviews were conducted(see below). In order to protect sensitivecommercial information, intervieweeswere assured confidentiality;

• Four interviews with successful French firms involved in the motorsport and performance engineering market.

• Two interviews with French-based organisations dealing with the French motorsport and performance engineering industry.

• Four interviews with French motorsport and performance engineering end-users.

Stage One also included the followingdesk-based research:

• re-examination of existing National Survey of Motorsport Engineering and Services 2000 questionnaire returns andassessment of other MIA material.

• structured analysis of UK and French trade magazines (e.g. Autosport, Racecar Engineering, Race-Tech, SportAuto, Auto Hebdo)

• web-searches.

• review of published business/market reports in the UK and France.

Stage 2

THE FRENCH MOTORSPORT ANDPERFORMANCE ENGINEERINGMARKET – NICHES OF BUSINESSOPPORTUNITY

Stage One split French motorsport andperformance engineering into variousmarket segments. It also identified whichof those segments the UK motorsportand performance engineering industrywas particularly well qualified to supply.The Expert Panel met to decide thechoice of segments for furtherinvestigation as niches of businessopportunity. The niches were chosen onthe basis of market areas that couldprovide the highest potential commercialreturn for the UK motorsport andperformance engineering industry. Thepanel chose two niches of opportunity.

Information gathered during Stage One ofthe research was utilised in order toprovide potential interviewees for StageTwo.

Chosen niches of opportunity wereresearched through a process of 20structured interviews with French endusers using a mix of face-to-face andtelephone interviews. The face-to-faceinterviews were carried out at the the‘Innovation; Sports, Leisure andCompetition’ Conference, held at Magny-Cours on 23-24 October 2003, and at theFFSA Super Series race meeting held atMagny-Cours from Oct 24-26, 2003.

9

1.0

THE VALUE OF THE FRENCHMOTORSPORT AND PERFORMANCEENGINEERING MARKET

1.1.1

THE FRENCH MARKET VALUE

The total turnover of the motorsport andperformance engineering market inFrance, for both engineering and services,is estimated at £1.5 billion in 2003.

The French motorsport and performanceengineering market was segmented onthe basis of the type of motorsportcompetition, chosen by the individualcompetitor. This method was chosenabove any other type of segmentation, forexample by French motorsport businessspecialism, due to the availability ofpublished figures for French competitordemographics.

The method of calculation of marketsegment values is detailed in Section1.1.2. The value of each market segmentis shown as a percentage of this total inDiagram 1. Table 2 shows thesepercentages as monetary values.

By comparison, the £1.5b turnover formotorsport and performance engineeringin France in 2003 compares with the £4.6bturnover for motorsport and performanceengineering in the UK in 2000, discoveredby the MIA’s National Survey of UKMotorsport Engineering and Services in2000. Also by comparison, the MIA’sMarket Research Report on the USAMotorsport and Performance engineeringMarketplace estimated that this marketwas worth $16.45b (approximately£11.0b) in 2002.

STAGE 1 • SECTION 1.1

VALUE OF THE FRENCH MOTORSPORT AND PERFORMANCEENGINEERING MARKET

20%

8%

2%

5%

30%

5%

10%

3%

2%

15%

Single Seater Racing

Saloon Racing

Drag Racing

Historic Motorsport

Rallying

Off Road

Sportscar Racing

Karting

Speed Events

Performance Engineering

Diagram 1:Turnover Value of French Motorsport andPerformance Engineering, by MarketSegment in 2003

10

1.1.2

METHOD OF SEGMENT VALUECALCULATION

Given a total value of the Frenchmotorsport and performance engineeringmarketplace, including both engineeringand services, of £1.5 billion in 2003, thevalue of each market segment wasestimated by using the followingcalculations;

• Comparing segment value with the value of segments discovered in the MIA’s USA Motorsport and Engineering Market Research Report 2002.

• Comparing segment value to the size ofthe UK industry discovered in the MIA’s National Survey of Motorsport Engineering and Services 2000.

• Our expert interviewees were asked to verify the segment values given their own particular segment experience andcross reference with established valuesof the UK and USA marketplace.

• Utilising company revenues published on company websites, or in the press.

• Utilising Competitor numbers taken fromthe Federation Francaise du Sport Automobile (FFSA) and shown in Appendix One.

1.1.3

FUTURE POTENTIAL OF THE FRENCHMARKET

Our expert interviewees were asked toestimate the future growth potential ofeach segment over the next five years.These results were validated using desk-based research. Both these methodssuggest that the future value of the totalFrench motorsport and performanceengineering market will increase to£1.582b by the end of 2007, an increaseof 5.5% from a 2003 total of £1.5b.

As Diagram 2 indicates, the Frenchmotorsport segment (excludingperformance engineering) is expected togrow from £1.275b of this total in 2003, to£1.311b in 2007, a segment increase of2.8%. Performance engineering, bycomparison, is expected to grow from£0.225b in 2003, to £0.271b in 2007, asegment increase of 20.4%.



Table 2: The French Market Segment Values in 2003

Market Value of market %Segment (£m)

1 Single seater Racing 300 20

2 Saloon Racing 120 8

3 Drag Racing 30 2

4 Historic Motorsport 75 5

5 Rallying 450 30

6 Off Road (incl. Rallycross) 75 5

7 Sportscar Racing 150 10

8 Karting 45 3

9 Speed Events 30 2

10 Performance Engineering 225 15

Total 1500 100

Years

2003 2004 2005 2006 2007

Val

ue o

f the

Mar

ket

£(b

)

2

1

0

Motorsport Performance Engineering

Diagram 2:Future Potential of French Motorsport andPerformance Engineering Market

11

1.1.4

A GENERAL OVERVIEW OF FRENCHMARKET TRENDS

The headline figure of £1.5b is for thecombined value of French motorsport andperformance engineering in 2003.

Currently, French motorsport isepitomised by WRC teams, Peugeot andCitroen, and the Le Mans 24-hour race.Less well known is the country’s strongpresence in the F1 supply chain.

While Renault now has a significantpresence in F1 after the OEM boughtBenetton outright in 2001, the team andchassis production are still based in UKand Renault’s engines produced in ViryChatillon, France at Renault Sport.France’s last surviving F1 team, ProstGrand Prix (formerly Ligier), slid intobankruptcy early in 2002. Asiatech, an F1engine manufacturer based at the formerPeugeot F1 facility at Viry Chatillon,closed in October 2002 due to fundingdifficulties.

Renault F1 engines are now the only highprofile F1 involvement in France, but thishides a strong, wider French presence asengineering suppliers to the F1 industry.

Within the F1 engine supply chain,Mecachrome is a long-standing partner ofRenault. Mecachrome is an aerospaceengineering company, currently involvedwith Airbus, and supplies the hightechnology end of the motorsport market.In the past it has acted as a manufacturerof F1 engines in its own right, utilisingRenault F1 technology when Renaultdecided to cut its F1 involvement. Today itacts as a highly regarded subcontractor tothe F1 engine programme of Renault andit is rumoured, other OEM F1 engineprogrammes, and is very active in theUSA.



Table 3: French Market Trends

1. Single Low Low Euro F3 supersedes French Seater F3; Loss of F1 team Prost and Racing F1 engine manufacturer

Asiatech; introduction of FRV6 weakens F3000; Mygale and Martini developing F3 cars; New2005 F2 spec engine made by Mecachrome; Mechachrome buys French JPX and Swiss Mader Racing; Renault removessupport for SODEMO F3 engine

2. Saloon Racing

Professional Medium Medium Success of Supertourisme means no French Super 2000; Diesels for Supertourisme in 2005?, ORECA buys SNBE

Amateur Low Low Success of Coup de France

3. Drag Racing Low Low None of significance

4. Historic Medium Medium ACO Historic support races affect non ACO series; Success of Le Mans Classic event; Closure of Montlhery circuit in 2004

5. Rallying Low Low Renault to WRC?; National S1600 has few manufacturers for 2004; ORECA buys SNBE; One-make Renault Clio series inFrance for 2004 – cars built by UK’s LAD

6. Off Road Medium Medium Paris-Dakar; Success of Ice Racing; ORECA buys SNBE

7. Sportscar racing

Professional Medium Medium New Euro Le Mans Series; Lackof manufacturers at Le Mans; Diesels at Le Mans?; Peugeot remove Le Mans backing

Amateur Low Low Growth of FFrance; Legends for 2004? Alternative fuel Peugeot RC Cup for 2004

8. Karting Low Low Strong domestic scene but few manufacturers; SODEMO developing 4 stroke engine

9. Speed Events Low Low None of significance

10.Performance Medium Medium Pininfarina buys engineering Automobiles Matra; ORECA

buys SNBE

Potential overall growth of

segment overnext 5 years

Potential growthof UK industry’s share of sector

over next 5 years

Latest Developments in segment

Market Segment

12

1.1.4 continued

Another highly regarded F1 enginesupplier based in France is crankshaftproducer Chambon, part of the US ownedPerformance Motorsports Inc group ofcompanies, that includes Perfect Bore, JEPistons and Carrillo Rods. JPX, a firm thatsupplies F1 pistons, valves and specialistcoatings, is now part-owned byMecachrome. Mecachrome has recentlybought the Swiss-based Mader Racingengine specialists.

Outside the F1 engine supply chain,French firms play an important part insupplying the F1 sector. Chief amongstthem is Carbon Industrie, a manufacturerof carbon brakes to F1 and one of thethree recognised carbon brake F1suppliers. Carbon Industrie, principally anaerospace company, is increasingly usingF1 to raise the technological andmarketing profile of its mainstream non-F1product line. The French tyre companyMichelin is one of two current F1 tyresuppliers alongside the Japanesecompany Bridgestone. In 2004 Michelinsupplied 60% of the F1 grid.

Historically, French motorsport has gainedsignificant funding from French OEM’s,tobacco companies and oil companies.Over the last ten years finance from oiland tobacco companies has reduced,leading to the loss of a generation of F1drivers and a significant part of theindustry.

Outside F1, France also has a strongpresence in the World RallyChampionship, providing both thePeugeot WRC team, based at Velizy, andthe increasingly competitive Citroen WRCteam, based in Versailles. Renault is alsorumoured to be considering a WRCprogramme. Elsewhere in the Frenchmotorsport industry, Mygale has apresence in Formula Ford and builds thechassis for the various Formula BMWJunior series.

In sporting terms, the Le Mans 24 Hoursremains the world’s premier sportscarrace and attracts domestic sportscarconstructors like Courage. In addition, theformer F1 circuit, Paul Ricard in the southof the country is being developed as apermanent F1 test facility under BernieEcclestone’s ownership, and includes apermanent Toyota F1 test-team base.

Finally, the strength of the Frenchaerospace industry means that the FrenchOEM’s have been able to call on theservices of aerospace engineering firmslike Mecachrome and Carbon Industrie.Consequently these firms have gone on tobecome global suppliers to the motorsportindustry. French OEM’s also benefit fromthe large-scale aerodynamic researchestablishments like ONERA, and InstitutAerotechnique. The strength of thisFrench aerodynamic research link tomotorsport has resulted in theestablishment of smaller motorsportrelated aerodynamic consultancies, suchas the Sardou Group.

Table 3 on page 11 provides a summaryoverview of market trends across thesegments. The next section (2.1 – 2.10)provides a detailed overview of markettrends



13

2.1

SINGLE SEATER RACING

2.1.1

OVERVIEW

The single seat market segment in Franceis dominated, at an industry level, byinvolvement in Formula 1. Renault Sportsupplies engines to the UK-based Renaultteam and Mecachrome, Carbon Industrieand Michelin are key players in the F1global marketplace.

Single seat racing, at a domestic level, inFrance is dominated by Renault. Althoughseveral of the Renault single seatcategories are not strictly French domesticseries, they will be briefly described for thesake of an overview of Renault’s activitywithin European motorsport.

Renault’s leading European single seatcategory is called Formula Renault V6.This is a one-make chassis and engineformula intended to rival Formula 3000.The category was introduced in 2003although only one round actually takesplace in France.

French motorsport, in the past, had aheadline F3 series within its single seatsegment, but demand fell due partly to thestrength of the domestic Formula RenaultChampionship. Partly to offset thisdecline, in 2003 the French and GermanF3 series were combined to form the F3Euroseries, with strong manufacturersupport from German and French OEM’s.The series is jointly organised by theFrench-based FFSA and the German-based DMSB organising bodies.

Renault heavily supports Formula Renaultin France, and many other Europeancountries. As Table 5 indicates, Renaultalso supports a short 4 round Europeanseries, although none of the rounds of thisseries take place in France. The FrenchFormula Renault Series now comprises 8races in France. Each race attractsapproximately 30 drivers, all utilising theone-make chassis supplied to the series.

Formula Renault is part of the majorFrench race series, organised by theFrench motorsport governing body, theFFSA. This series is called the FFSASuper Series and comprisesSupertourisme, One-make Peugeot 206,Porsche Carrera Cup and French GT’s. Itcomprises 8 rounds, although not all theindividual support races compete at all ofthe 8 events.

The FFSA also organises a series belowthe Super Series, entitled the SeriesFFSA. This programme of events features7 rounds. The series covers a wide varietyof motorsport including Super ProductionSaloons, Formula Renault Campus,Formula France, Formula Ford, 250Superkart, One-make Caterham and alower key GT series. Not all these serieswill race at all the 7 events of “SeriesFFSA”.


THE FRENCH MARKET SEGMENTS

Table 4: Overview of the Single Seat segment

Description of Examples of Domestic Value of MarketMarket Segment Series in this Segment Segment

(£m)

SIngle Seat Categories FRV6 300FRenault 2000, FRenault Campus, FF1800

Table 5: French, or French-based, Single Seat Series (Source: FFSA)

French National No. Races No. Regular Series DetailsSingle Seater Series in 2003 Drivers in 2003

Eurocup FR V6 11 17 1 round in France

Euro F3 Series 10 30 3 rounds in France, DTM Support Series

Masters FRenault 2000 4 35 0 rounds in France; Euroseries

FRenault 2000 8 30 Top French-based only series

FF1800 8 25 Only open chassis single seat category based solely in France

FRenault Campus 8 24 Main Feeder route for French karters

14

The two lower rungs of single seat racingin France compete in the Series FFSA.Formula Ford 1800 races at Nationalchampionship level in this series andattracts approximately 25 cars per event,and is the only open chassis formula inFrench single seat racing.

Formula Renault Campus also competesas part of the Series FFSA package.Formula Renault Campus is a Renaultsupported one-make chassis and engineformula designed to act as a feederbetween the French Karting scene and thelower rungs of French Single Seat Racing.Unlike the other French Single Seatcategories, all the drivers are run by anumbrella organisation, rather than byindividual teams.

2.1.2

MARKET TRENDS

Our estimates for future growth within thissegment are very much based on thefuture strategy of the French OEM’s and,currently, we do not forecast any greatchange in value within this segment overthe next 5 years.

At an industry level, high profile French F1involvement has fallen away over the lastfew years with the closure of Prost,Asiatech and Peugeot, and we haveaccounted for these closures in ourheadline figures. The possibility thatMecachrome may be awarded the enginecontract for F2 from 2005, under a Renaultsponsored series, would be a large gainfor the French industry, and a loss ofopportunity for the current UK supplierZytek (and Judd).

As with much of French domesticmotorsport, trends within French SingleSeat Racing tend to be dictated by thecompetition policy of the French OEM’s. Inthis case, Renault holds a very high profilewithin French Single Seat racing.

Although not strictly based in France, theRenault supported FRV6 category rivals

F3000 and Formula Nissan on aEuropean basis. This has led to thedilution of all three categories, with entriesin each category struggling to reach andmaintain 20 cars. It appears likely thatconsolidation will occur from 2005onwards, and change this position.

The loss of French F3, partly due to theloss of French oil and tobaccosponsorship over the last decade, hasmeant that many leading French SingleSeat Teams have migrated away fromFrance into other single seat categories.The Iberian-based Formula Nissan V6World Series, for example, has attractedFrench F3 teams, as has the F3Euroseries.

At the level of the F3 Euroseries, Renaultis one of several OEM’s involved insupporting teams and drivers. Whileproviding funding for teams and driversthrough its Driver Developmentprogramme until 2003, it also suppliedfunding to the French specialist enginemanufacturer Sodemo, to build F3engines that it supplied to two of theleading Euroseries teams. This fundingrelationship ended at the end of 2003.

Below F3 the domestic Formula Renaultseries is one of Europe’s strongest. Thiscontrasts significantly to the situation inFormula Ford. As in many countries, thelack of support by the OEM for thiscategory means it is under threat fromother single seat categories.

2.1.3

THE UK’S POSITION IN THE SINGLESEAT SEGMENT

At the level of F1, UK firms are keysuppliers to the involvement of Renault inF1, as the Renault F1 team is based in theUK, with only its engines and tyressourced from France.

The Renault-organised, but Europeanwide, FRV6 category is a one-specification formula wherein all chassis

and engines are supplied centrally.Renault does not allow competingchassis, engines or subsidiarycomponents. All chassis are carbonmonocoques supplied by the ItalianTatuus concern, all engines by RenaultSport, and all gearboxes by the FrenchSADEV organisation. Tyres are suppliedby the French company Michelin, wheelsby the Italian firm OZ, and electronics bythe Italian-based Magneti Marelli. Thetechnically restrictive nature of this one-make category means it is very difficult forUK firms to gain a foothold, unless theycan win a contract as the sole supplier ofa particular component from the parentOEM.

The Italian Dallara chassis dominates theF3 Euroseries. The UK firm Lola isattempting to break into the F3 market.Engine suppliers to the F3 Euroseries aredominated by the OEM’s (Mercedes,Toyota, Honda, Opel). These OEM’ssupply engines built by subcontractors likethe German-based Spiess (Opel) andHWA (Mercedes). UK-based Neil Brown isinvolved in supplying Mugen-branded,Honda-based engines to two teams in the2003 Euroseries. UK firms, Hewland(gearbox) and AP (brakes) are involved inthe series as subcontractors to Dallara,but any meaningful further penetration ofthis market may rely on a UK-basedchassis manufacturer challenging thedominance of the Italian Dallara concern.

UK firm involvement below F3 in theFrench Single Seat category is restricteddue to the preponderance of one-makeseries supported by Renault. The FormulaRenault series, for example, have acarbon monocoque chassis built by theItalian firm Tatuus, a gearbox supplied bythe French firm SADEV, tyres by Michelin,wheels by the Italian firm OZ, and enginessupplied by Renault Sport in France. Strictcontrols are set up by Renault to ensurethat engines and gearboxes aremaintained, rather than developed,usually by one officially authoriseddistributor in each country where theRenault series competes. As such, theopportunities for UK firms are limited,subject to a bid to Renault to supply thewhole chassis batch, or all the gearboxes.



15

This may be an option when the currentregulations for the class are renewed. Anexample of where a UK company hasmade this sort of bid is Alcon, whichsupplies all the brakes for FormulaRenault on a worldwide basis.

At the lowest level of Renault’s domesticSingle Seat involvement is FormulaRenault Campus. These chassis are of aspaceframe construction and built by theMygale chassis contructor in France. LikeFormula Renault, Formula RenaultCampus has a one-specification gearboxand engine centrally supplied andmaintained. All these factors mean UKfirms’ development of this level of themarket is, again, difficult.

The one open chassis French Single SeatCategory is Formula Ford. The UK firmVan Diemen has a presence as a chassissupplier, but the market for chassis inFrench Formula Ford is dominated by theFrench Mygale concern. UK suppliers dohave a presence as Hewland gearboxes,for example, are utilised in all FormulaFord chassis. Although on the surface, thestrength of Van Diemen in other marketsmay presuppose an opportunity in FrenchFormula Ford, the entrenched position ofa domestic chassis manufacturer,together with the weak state of FormulaFord more widely, mean that this may notbe the opportunity it at first appears. At thelast round of the National French FormulaFord championship, only 2 of the 25entrants were entered in 2003 spec cars.The rest of the field were entered in olderchassis.

2.2.

SALOON RACING

2.2.1

OVERVIEW

The position of Renault in the FrenchSaloon Racing segment will be initiallyoutlined. Although technically Renaultdoes not have a domestic one-makechampionship in France, the company

does run two European-based series,which for the sake of completeness shouldbe included in the discussion of thissegment.

The top class of Renault’s European widesaloon car strategy is the Clio Trophy (seeTable 7). This is a 9 round Europeanchampionship for high performance mid-engined Clio V6 cars. Below this series inRenault’s European wide saloon car

strategy is the Clio Cup. This series is alsoEuropean wide, and caters for the morestandard front wheel drive Clio.

At a purely national level, the leadingFrench saloon car category is calledSupertourisme. This is part of the 8 RoundNational French racing series, attractingentries of 26 Supertourisme cars perevent, called Super FFSA. Supertourismeis unlike other leading European salooncar championships in that the cars are‘silhouettes’ of existing models, ratherthan being mechanically based on roadgoing cars.



Table 6: Overview of the Saloon Racing Segment

Description of Examples of Series Value of MarketMarket Segment in this Segment Segment

(£m)

Saloon Racing 120

Professional Euro Clio Trophy,Euro Clio Cup,

Supertourisme

Amateur Peugeot Coupe 206CC, Superproduction,

Table 7: French, or French-based, Saloon Racing Series in 2003(Source: FFSA)

French National No. Races No. Regular Series DetailsSingle Seater Series in 2003 Drivers in 2003

Clio Trophy 9 30 Mid-engine V6Clio; EuroSeries with 1 round in France; discontinued in 2004

Clio Cup 9 50 Fwd Clio; Euro Series with 1 round in France

Supertourisme 8 26 Top Saloon category in France

Peugeot Coupe 8 45 Leading France only 206CC One-make saloon

category

Superproduction 7 16 Production based saloon series

Coupe de France 11 190 Introductory category forlightly modified road cars

16

Below Supertourisme, in French SaloonRacing is the one-make Peugeot Coupe206 Series. This is a very popularcontrolled specification one-make formulasupported by Peugeot Sport. The seriesraces across 8 meetings in France, andfeatures high entries of up to 45 cars perrace.

Also below Supertourisme, and atapproximately the same level of technicalsophistication as the one-make Peugeot206 series, is the French Superproductionseries. This is a low-key category, similarto Group N, for lightly modified road cars.

The introductory series for club racerswithin the French saloon car racingsegment is called the Coupe de France.This is an 11 round championship thatallows many types of lightly modified roadcar to compete against one another. Theseries attracts up to 200 cars per eventand seems to be successful in providing alow cost entry route to racing in France.This seems to operate in a similar mannerto a category like the 750MC’s StockHatch series in the UK, although theFrench series is not restricted tohatchbacks only.

2.2.2

MARKET TRENDS

Although less beholden to the FrenchOEM’s than the French Single Seatmarket segment, this is only marginallyless apparent. Our Key Informants andExpert Panel prescribed no real change inthis segment over the next 5 years.

The European Renault Championshipsare obviously dependent on the whims ofthe OEM’s marketing programme and it islikely that the Clio Trophy may have lessof a shelf life than the Clio Cup. The sameremarks could also be aimed at theNational level Peugeot Coupe 206CC.Although highly successful at the moment,it cannot really go in any direction otherthan down, once its marketing shelf lifehas expired. It could perhaps be replacedwith the next model the OEM wishes topromote.

The relative success of the Supertourismecategory indicates a change in directionby the FFSA, away from a Europeanstandard set of saloon regulations towardssomething more home grown. Early signs,for a category in only its second year in2003, look promising. Of the FrenchOEM’s, Peugeot is involved in thecategory, as is the Spanish OEM, SEAT. Ifthis category could attract involvementfrom Renault and Citroen, then it mayshow relatively strong growth. Its ultimatesuccess may be compromised as itsregulatory environment means it can onlyever be a French series. It may be thatattracting Renault to the category maydetract from an existing Renaultmotorsport marketing strategy that theOEM may be unwilling to change.

At the grassroots of French Saloon Racinglies Superproduction and Coupe deFrance. Superproduction currently relieson very small fields and its success is notassured unless OEM’s become involved.This situation is similar, at this level ofsaloon racing, in many countries. Thecategory needs OEM involvement butOEMs often see more marketing value inrunning their own one-make series.

The Coupe De France is a successfulgrassroots series allowing, what are littlemore than lightly modified road cars, ontothe track, for little expense. It may growfurther as a segment but the grassrootsnature of the category means this isunlikely to boost overall segmentrevenues significantly.

2.2.3

THE UK’S POSITION IN THE SALOONRACING SEGMENT

The European wide categories, ClioTrophy and Clio Cup, are one-makecontrolled specification formulae that, like,Formula Renault V6 and Formula Renaultin the single seat categories, offer little inthe way of opportunities for UKcompanies. Renault Sport builds cars inthe Clio Trophy series and their enginesare sealed to maintain equivalence, andare maintained by Renault Sport. The carshave SADEV derived gearboxes, Italian

Brembo brakes, Magneti Marellielectronics and have Michelin tyres.Technical regulations in the lowerspecification Clio Cup are equallyrestrictive. The only opportunity for UKcompanies seems to be in becoming apreferred supplier of a particularcomponent when the next set of cars for anew Renault supported series becomesavailable.

The Supertourisme series may offer moreopportunities for UK companies. This is asilhouette saloon series with bodiesmodelled on existing production cars butwith spaceframe chassis. The chassis arecurrently all built in France by firms likeORECA, SNBE and Solution F. Currentlychassis are modelled on the Peugeot 406Coupe, Opel Astra Coupe, SEAT Cordobaand BMW M3. In terms of engines, eachcar must use a production derived 3 litreV6, based on an engine available from theparent OEM. French engine specialistslike SODEMO and Solution F currentlysupply engines to the category. Due to theslightly more open technical regulations inthis series, there could be opportunities forUK engine builders and specialist enginesuppliers, together with specialistengineering service suppliers, to becomeinvolved in the category.

At the grassroots level of Superproductionand Coupe de France there seems little totempt UK companies. Superproductionhas small grids, and although Coupe deFrance has a large number of entrants,they are all competitors on a tight budgetwho are unlikely to look too far or spendtoo much on new components or services.



17

2.3

DRAG RACING

2.3.1

OVERVIEW

French Drag racing is at a low levelcompared to that in the UK, Germany, orthe Nordic countries. There is a 16 roundnational championship held mainly attemporary venues, rather than permanentdrag racing strips like Santa Pod in theUK. The cars race at tracks measuringboth a quarter and eighth miles in length.

There are 10 drag racing venues inFrance, of which the Meginac venue is themost popular. In comparison to dragracing in the UK or Germany which utiliseshighly specialised Drag racing cars, inFrance the most popular are modifiedEuropean road cars.

2.3.2

MARKET TRENDS

Our Key Informants and Expert Panelconfirmed the low-key nature of DragRacing in France and did not foresee anyparticular growth in the segment over thenext 5 years.

2.3.3

THE UK’S POSITION IN THE DRAGRACING SEGMENT

Due to the low-key domestic nature of thechampionship, there do not appear toomany opportunities in this sector. It is likelythat local distributors supply these clublevel racers with generic competitionequipment like clutches, hoses and fittingsand brakes. It is likely that UK firms suchas AP and Goodridge sell equipmentthrough these local distributors, but thevolumes of equipment sold will berelatively small.

2.4.

HISTORIC MOTORSPORT

2.4.1

OVERVIEW

In terms of historic events in France, keyevents are the Tour Auto and events heldat the Le Mans circuit. The Tour de Franceis a 5-day road-based event, like theItalian Mille Miglia and is organised by theFrench company Peter Auto. The eventinvolves participants driving historicvehicles between various French circuits,where they compete against the clock atthese facilities. The event attracts a largecontingent of international participants.

There are also various racing events heldat the Le Mans circuit, which attracts agreat deal of attention due to the currentstatus and historic importance of the LeMans 24 Hours. Each year a support racefor historic cars is held at the main LeMans 24 Hours event. In the last fewyears, Le Mans has also added a biannual historic only event, run separatelyfrom the main 24 hours event, and purelyfor historic cars. This event has attractedgood reviews and a large number ofinternational participants

France also has a strong heritage ofmotorsport, with some of the most famouscircuits in Europe alongside Le Mans. Forexample, French historic motorsport runsrace events at the Pau and Angoulemestreet circuits, and at the Montlhery circuit.Montlhery is a part oval circuit with ahistory similar to that of the UK’sBrooklands circuit but which, closed at theend of June 2004. These events includedomestic French historic motorsportseries but also involve pan EuropeanHistoric series, which are based inGermany or the UK.

Below the international historic circuitbased events, the FFSA organises a 5round Serie VH (Historic Vehicle)championship at the main French circuits.This championship has classes for ClassicF3 cars, 1960’s saloons, 1970’s saloons,Lotus 7’s, up to 1 litre Historic saloons,Classic Formula Ford and a classexclusively for historic French singleseaters. Most of these classes appear wellsupported by French competitors.



Table 8: Overview of the Drag Racing Segment


(£m)

Drag Racing FFSA Coupe de France 30

Table 9: Overview of the Historic motorsport Segment


(£m)

Historic Racing 75

Professional Le Mans, Tour Auto Race Club FFSA Serie VH,

French Endurance; Rally; Speed

18

1.1.4 continued

There is a French EnduranceChampionship for Historic sportscars ofthe sixties and seventies, entitled theFrench HSR Endurance Championship.This is a 6 race series of various racelengths of 6, 8, 12 and 24 hours duration.The series is organised by VdeV Racingwith 5 of the 6 rounds taking place inFrance.

Outside circuit racing, French motorsportorganises a series of Road and Stagebased Rally championships for historiccars, although these are not of aninternational standing nor do they producea segment value comparable with thecircuit-based events described above.

Similarly, French Club motorsportoperates Historic motorsport events withinits speed-based events. These hillclimbshave classes for Historic vehicles andappear well supported although again, thesize and value of this market does notcompare with the various Le Mans basedevents or the Tour Auto.

2.4.2

MARKET TRENDS

Historic motorsport in Europe is growing.Our Expert Panel and Key Informantsconfirmed that this was also likely to bethe case in France. We have factored in a5% yearly increase in the value of FrenchHistoric motorsport to reflect the moregeneral European wide increase inHistoric motorsport. This takes the valueof the segment from £75m in 2003 to£91m in 2007.

The strength of the Le Mans brand meansthat any event associated with the circuitis likely to prove successful. In 2004, LeMans will launch a short series of 4European sportscar races to support theLe Mans 24 Hours. As part of these 4 newevents it is proposed that there will be ahistoric racing support package, to beorganised in conjunction with Peter Auto,the organisers of the bi-annual Le Manshistoric event and the Tour Auto. Theseevents are likely to be strongly supportedfrom within the European Historicmotorsport community.

At the club level of French Historicmotorsport, our Key Informants andExpert Panel confirmed that an increasinginterest in Historic motorsport was likely tobe also reflected at the grassroots level ofFrench Motorsport.

2.4.3

THE UK’S POSITION IN THE HISTORICMOTORSPORT SEGMENT

The Historic motorsport segment inFrance may be subdivided into twosections for the purposes of UK firms. Thefirst segment is based around a series ofevents, such as the Le Mans Historicraces, that have international stature.Many competitors at these events are highnet worth individuals racing expensive andoften UK-built racing cars. In this case, UKHistoric racing preparation experts likeHall and Hall, Cambridge Motorsport, andHoole Racing are well placed to supply themarket.

The second segment where UK firms areinvolved, is for the less well off enthusiastwho prepares his/her own vehicle withinFrench club Historic motorsport. Forexample, the Serie VH run by the FFSA,includes many cars in categories likeHistoric Formula Ford and Classic F3which are UK derived, such as VanDiemen and Ralt. UK componentsuppliers are supplying this level of clubmotorsport and are proactive in supplyingcomponents for club level historic speedevents and rallying.

While the club level of historic motorsportmay be less well funded, the fact that thesector is one of the few areas of Europeanmotorsport still expanding, must be seenas an opportunity. At the other end of thescale, the organisation of high profileFrench Historic motorsport events aroundLe Mans, for example, must also be anopportunity for the higher profile UKpreparation companies.



19

2.5.

RALLYING

2.5.1

OVERVIEW

At the level of the WRC, French teams arehugely successful within the Rallyingsegment. Operations like Peugeot Sportand Citroen Sport are world class rally cardesigners, car builders and teams.

French Domestic Rallying has three topnational level series. One seriesconcentrates on gravel road specialstages, another concentrates on tarmacroads, and the last is a series for a certaintype of car, the Super 1600 category.

The French Gravel Rally Championshiptakes place nationally over 7 rounds,whereas the French Tarmac RallyChampionship comprises 6 rounds. TheGravel Championship attracts entries ofapproximately 60 cars per event; theTarmac Championship attracts entries of110 cars per event.

The Super 1600 Rally Championship, bycontrast, attracts 40 entries per round andis contested over 7 rounds.

Below these national rally series are twolevels of events. There are regionalchampionships, spread across the 18administrative regions of France, all ofwhom organise their own regional rallychampionships. Below this there are alsoevents local to each region that form partof local club organised grassroots rallychampionships.

2.5.2

MARKET TRENDS

Our Key Informants and Expert Panel feltthat French rallying would be a fairly staticmarket over the next 5 years. Frenchrallying at the national level is dependenton the marketing strategies andcommitted motorsport involvement of the

French OEM’s. For example, the Frenchhave a stand alone Super 1600 series, butthere are only half a dozen or so entrantsin the top Super 1600 class. If, asrumoured, one of the three currentlycompeting French OEM’s pulls out of thischampionship in 2004, there is likely to belittle competition in this category next year.The rest of the Super 1600 field is filledwith lower specification one-make 1600cccars from the French OEM’s, but thishardly constitutes a frontlinechampionship.

The other French NationalChampionships, the Gravel and TarmacChampionships, comprise only 3 WRClevel teams at best between them,according to our Key Informants, and arealso predicted to be fairly static in terms ofgrowth over the next 5 years.

2.5.3

THE UK’S POSITION IN THERALLYING SEGMENT

The two French WRC teams, Peugeot andCitroen have a history of close relationshipwith the UK motorsport industry. Xtrac andHewland, for example, supply gearboxesand gearbox components to the Frenchteams while both AP and Alcon supplybrakes to the market. Renault arerumoured to be considering an entry inWRC.

At the level of the National French Seriesthere are few WRC cars involved,although where they exist, they are run byFrench teams like Bozian, a highlyrespected organisation also present onthe world rallying stage. Within Nationallevel rallying outside the few WRC cars,the equipment used by competitors aremainly cars such as the Mitsubishi Evo,and a large number of lower specificationPeugeot and Citroen hatchbacks.

Within the French Super 1600 series,OEM cars are built either by themotorsport arms of the French OEM’sthemselves, or by the few Frenchspecialists. For example, currentlyORECA builds and runs the RenaultSuper 1600 Rally Car.

Within the French rallying segment, belowthe level of component and servicesuppliers to the two main WRC teams, thelower value of UK specialist componentsupply to National and Regionalcompetitors is fulfilled by the supply ofcomponents through French motorsportdistributors.



Table 10: Overview of the Rallying Segment


(£m)

Rallying French Gravel 450Championship, French Tarmac Championship, Super 1600

20

2.6.

OFF ROAD (INCL. RALLYCROSS)

2.6.1

OVERVIEW

The Off road segment of the marketcomprises two main sub-segments. Thefirst segment comprises the FrenchNational Rallycross championship and theTrophee Andros Ice RacingChampionship. The second main segmentcomprises National level 4x4championships and the Paris-Dakar Rally.

The French Rallycross Championship has11 rounds attracting 90 participants perevent. There is also a one-make CitroenSaxo National Rallycross Championshipthat has 7 rounds and attracts entries of40 identical cars per event.

The Trophee Andros is a high profilewinter Ice racing series running from earlyDecember to early February over 7 eventsin France. Typically there are around 70participants competing over the wholechampionship.

The 4x4 Championship has 9 rounds thatattract 180 participants over the course ofthe season, while the 4x4 EnduroChampionship is contested over 6 roundsand attracts over 300 participants over theseason.

The Paris-Dakar Rally is a stand-aloneevent run in January that has a very highprofile in the media. The event is not partof the FIA Cross Country Championshipnor part of a French National Series, andtakes place partly in France, but mainly inNorth Africa. The event’s success andhistory means that in 2003 it attractedfields of 437 competitors from 28nationalities. These competitors used 324vehicles in the race, of which 155 weremotorcycles, 124 were cars and 45 weretrucks.

2.6.2

MARKET TRENDS

Our Key Informants and Expert Panelconfirmed that Rallycross was a fairlystatic segment unlikely to grow much inthe years ahead. Similarly, they confirmedthat the Trophee Andros, while highlysuccessful, was also unlikely to growgreatly over the next 5 years.

Alongside Historic motorsport, our KeyInformants and Expert Panel suggestedthat Off Road 4x4 events were one of thefew categories growing in motorsportwithin Europe. It is likely that an increasein this part of the segment may offset anyweaknesses from Rallycross or IceRacing. In France, this is largely due tothe success of the Paris-Dakar and thespin off effects of the high media profilethis attracts. It also reflects the growingroad going market for 4x4 vehicles, asmall number of which may be modified bycompetitors for competition use.

2.6.3

THE UK’S POSITION IN THE OFFROAD SEGMENT

French rallycross is mainly a grassrootssport. The only factory involvement is witha low-key Citroen one-make programme.UK firm involvement in this category willtherefore be slight, apart from the sort ofgeneric motorsport components likely tobe distributed in France through localdistributors.

The Trophee Andros is higher profile,utilising specific vehicles, purposedesigned for the event. UK firms such asthe gearbox suppliers Hewland andengine suppliers Nicholson McLaren havean involvement in this sector. Our ExpertPanel confirmed that approximately 4French firms construct cars for this series,amongst them ORECA and SNBE, andthe market for UK firms is not particularlylarge in this segment.

The 4x4 market in France may show themost promise for UK firms. Schlesserbuggies are made in France, while themodification of Japanese 4x4’s forcompetition use is undertaken by Frenchfirms like Team Ralliart France, CLCMitsubishi and Team Dessoude.Mitsubishi’s Paris-Dakar vehicle, theMitsubishi Pajero Evo, is built in Franceeven though the company managementstructure resides in Germany at MitsubishiMotor Sport (MMSP).

The UK’s place in the segment ischaracterised by the supply of thesophisticated transmission systems anddifferentials needed for such roughterrains by UK firms like Hewland, Ricardoand Xtrac, in competition with the Frenchfirm SADEV.

Our Expert Panel confirmed, however,that they could not identify manyopportunities for further marketpenetration by UK firms in this sector. Thesector is still quite small, albeit the Panelacknowledged the possibilities for somegrowth in the segment.



Table 11: Overview of the Off Road Segment


(£m)

Off Road Total 75Rallycross/Ice racing National, Coupe de France,

Saxo, Trophee Andros

4x4, 4x4 Enduro National, Paris-Dakar

21

2.7.

SPORTSCAR RACING

2.7.1

OVERVIEW

Sportscar racing in France is dominatedby the Le Mans 24 Hours race organisedby the ACO. This race is the most famoussportscar race in the world, and its 80 yearheritage continues to set the agenda formuch of sportscar racing throughoutEurope and the rest of the world.

Below the Le Mans event lie two nationalsportscar series. The most popular is theGT series run under the auspices of theSuper FFSA championship. This seriesattracts a high quality field, includingentries from French teams who contestthe main European FIA GTChampionship. The number of rounds inthis series (8) and its entrants (40), alongwith figures for other sportscar series inFrance, can be seen in Table 13.

The second French sportscar seriessupports the second string FFSA series,and is called the GT FFSA series. This isa much lower key championship than theSuper FFSA GT series, with lower entriesof less quality.

Below these two GT series are three one-make championships.

First is a Porsche Supercup series, similarto that run in other European countriesand strongly supported by the GermanOEM.

Second, is a series for UK Caterhamsportscars that attracts good entries foreach of its 7 rounds. Note there is also aone-make Historic Lotus 7 championshiprun under the FFSA Serie VH, anddescribed in Section 2.4.

Third, and run at a similar level to theCaterham series, is the recentlyintroduced Formula France. This is a one-make, French produced, sportscar seriesutilising motorcycle engines, in a similarsort of technical package to that offered bythe Radical Sportscar company in the UK.The championship encompasses bothSuper FFSA and FFSA events, as well asa one off event at Spa in Belgium.



Table 12: Overview of the Sportscar Racing Segment


(£m)

Sportscar Racing 150

Professional Le Mans, GT

(Super FFSA),

Porsche Carrera Cup

Amateur GT (FFSA),

Formula France,

Caterham

Table 13: French, or French-based, Sportscar Racing Series in 2003 (Source: FFSA)

French Sportscar No. Races No. Regular Series DetailsEvents and Series in 2003 Entries in 2003

Le Mans 1 50 Leading Sportscar race in the world

GT Super FFSA 8 40 Leading French GTseries; organised by SRO

GT FFSA 7 20 Second rung GT series

Porsche 8 22 One-make championship

Caterham 7 35 One-make championship

Formula France 8 40 One-make championship; 7 rounds in France

22

2.7.2

MARKET TRENDS

Le Mans dominates the future potential ofthe sportscar segment in France.Sportscar racing is currently experiencinga decline in entries from OEM’s in theprototype classes, as can be seen in the2003 FIA Sportscar Championship andamongst Le Mans entries. Nevertheless,this is being slowly counterbalanced byOEM involvement in GT racing. Thesuccess of the FIA GT Championship, andsimilarly Le Mans, is seeing OEM’s likeFerrari (FIAT), Maserati (FIAT) andLamborghini (VW) join long term GTdevotees like Porsche, Lister andChrysler. Aston Martin will enter, withProdrive UK in 2005.

The success of GT’s at an internationallevel is having a knock on effect on thesuccess of French GT racing within theSuper FFSA Series. Although not a hugemarket, it is likely that the success of GTracing, and the likely success of the newLe Mans series, should slightly increasethe value of the French sportscar segmentover the next 5 years. We predict that thevalue of the segment will increase from£150m in 2003 to £170m in 2007.

The second rung of GT racing within theFFSA Series mainly utilises cars from theFrench one-make Porsche and Caterhamseries, albeit run in longer distance eventsthan the one-make series attempt. Thislevel of French sportscar racing is unlikelyto change much in value over the next 5years.

At the bottom rung of French Sportscarracing lies the one-make Formula France.This category has been successful sinceits introduction 2 years ago, and mayprove more successful over the next 5years. Although an effective low cost firstrung on the sportscar ladder, its overalladded effect to the value of the sportscarsegment in the next 5 years is likely to besmall. At the lower end of Frenchsportscar racing is the recently introducedFormula France category. This is basedon a spaceframe chassis, motorcycle

engined category, raced in both closedand open topped format. ExessCompetition in France builds all the cars,with 250 cars so far produced, and 150more under preparation as of October2003. This series is proving successful,but there is no real involvement by UKcompanies in the category.

New for 2004 is the one-make PeugeotRC Cup series. This is an alternative fuelmanufacturer-backed series comprising26 cars racing at 7 rounds in France. Inthe long term this series could betemplated by Peugeot in other countries,providing a boost to the segment and thegeneral cause of alternative fuels inmotorsport.

2.7.3

THE UK’S POSITION IN THESPORTSCAR RACING SEGMENT

There are a few sports prototypemanufacturers in France, of the type thatcompete at Le Mans, and will likelycompete in the new, European Le Mansseries. Courage is the largest of thesechassis manufacturers, producingperhaps two chassis a year, followed bymanufacturers like Norma, WR andDebora, who may produce one newchassis every other year or so. The size ofthis market is not large, and is unlikely tochange significantly in the years ahead.

UK gearbox suppliers, Xtrac andHewland, together with engine makers likeEngine Developments (EDL), are activesuppliers in this market. The decision byPeugeot to downgrade its support for theCourage chassis and Le Mans based,Pescarolo Sport team, has put morebusiness the way of the UK enginemanufacturers EDL, as will the decision byLe Mans organisers ACO to allow dieselengines in the future. Peugeot formerlysupplied funds for French engine builderSODEMO to produce a sportscar enginefor Pescarolo Sport.

Within the French GT Championship, thepopular choice is Chrysler Vipers,supplied mainly by Paul-Ricard basedORECA, and various Porsches, suppliedby the German based manufacturer.Some Porsches are GT cars, while someare Porsche Cup cars. There are also afew Lamborghini Diablos that formerlyused to compete in the Diablo one-makechampionship.

If the success of the French GTChampionship increases, there may beopportunities for UK firms like Prodrive,who produce successful privateer FerrariGT cars, together with key UK componentsuppliers like Xtrac and Hewland, toincrease market share, but as our expertsintimated, the market segment is notlarge.

Below French GT racing are the one-make championships. The highest valueof these is the Porsche Cup, whose carsare all built by the parent company inGermany. The next category of one-makechampionship is for Caterham sports cars.Here Caterham builds all chassis in theUK, with engine development by UK-based Minister Racing Engines. Bothengine and chassis are distributed inFrance through a local Caterhamdistributor.

The new for 2004 Peugeot RC Cup alsoappears to offer little for the UK industry.French-based Nogaro Technology buildsall the cars and they use alternative fuelroad-based engines built by PeugeotSport. Other major component suppliersare Italian Brembo brakes and FrenchMichelin tyres in a series run centrally bythe French-based Geoscan Conceptorganisation.



23

2.8.

KARTING

2.8.1

OVERVIEW

French karting is split, as in manycountries, between long circuit gearboxevents and short circuit, principally non-gearbox events. Short circuit karting is byfar the most popular segment in France.

Long circuit karting utilises the same full-scale circuits as do other categories ofmotor racing. Short circuit karting utilisessmaller purpose built karting facilities.Long circuit karting in France comprises a7 round series supporting the main SerieFFSA across the country. The category isfor 250 Superkarts and attractsapproximately 25 participants per event.

Short circuit karting in France is verypopular, probably second only in theEuropean popularity stakes to short circuitkarting in Italy. Short circuit karting inFrance takes place at approximately 100venues across the country, organised by218 Kart clubs.

The main French short circuit NationalChampionship is called the Grand PrixKarting FFSA Series. This is a 6 roundchampionship held at 6 venues acrossFrance. The National Championship hasapproximately 6 classes, from Juniorsthrough to 125cc classes, though not allclasses race at each round of thechampionship. Each championship roundattracts approximately 200 entrants permeeting.

Below the national short circuitchampionship, each region in France hasits own championship, and each kart cluborganises its own grass roots series.

2.8.2

MARKET TRENDS

While acknowledging that France isprobably the second biggest market forkarting in Europe, after Italy, our KeyInformants and Expert Panel suggestedthat the total size of the karting market inFrance was likely to remain stable overthe next 5 years.

One factor that will affect French shortcircuit karting in the future, as well as allother European countries, is theintroduction of 4 stroke motors. Currentlymost short circuit karting utilises smallcapacity 2 strokes. Due to environmentalconcerns, the karting governing body, theCIK, is trying to move short circuit kartingtowards the more environmentally friendly4 stroke motors. This will haverepercussions in France both for thecompetitor who will eventually have toequip with new motors, and for the enginemanufacturers, who will need to embracea new set of engine regulations.

2.8.3

THE UK’S POSITION IN THE KARTINGSEGMENT

Within the Long Circuit French kartmarket, the predominant chassismanufacturer is the Danish company PVP.Most engines in this segment are from theAustrian-based Rotax company. UKchassis manufacturers like Zip andAnderson do supply the long circuit kartchassis segment, but have a low level ofmarket penetration in France.

Within Short Circuit French Karting thepredominant chassis and enginemanufacturers are from the dominantItalian kart industry. Italian chassis firmslike, Biesse, Birel, CRG, Jolly Kart,Maranello Kart, Tony Kart and Trulli,dominate French short circuit karting. Inshort circuit engine supply, Italian firmslike Comer, IAME, Italsystem, PCR,Pavesi and Vortex predominate.

France does have one high profile shortcircuit chassis manufacturer, Sodikart, butno high profile engine manufacturers. TheUK has no real presence as either achassis or an engine manufacturer in theFrench short circuit karting segment.Within Europe, in the main, the Italianindustry dominates this area of themarket. UK industry potential is thereforelimited.

SECTION 2.8


Table 14: Overview of the Karting Segment


(£m)

Karting French SuperKart 45

(50, 60, 100, 125, 250cc) (Long Circuit),

Grand Prix Karting FFSA

(Short Circuit)

24

2.9.

SPEED EVENTS

2.9.1

OVERVIEW

Speed events in France are epitomised bythe French national hillclimbchampionship entitled the Championnatde France de la Montagne. Hill climbingand speed events in France, as in the restof Europe, are different to those in the UK.In the UK hillclimbs and sprints take placeon short, twisty, purpose built venues likethe Prescott Hillclimb or the CurboroughSprint venue. In France speed events,particularly hillclimbs, are held on closedpublic roads in remote areas.

European national governmentsdemonstrate a greater readiness to closepublic roads for competition than the UKGovernment. The events in France areusually far longer in length than those inthe UK, and the speeds achieved areusually consistently higher.

The premier series in France, theChampionnat de France de la Montagne,attracts fields of 150 cars per event, and isrun over 12 rounds. Below the level of thenational championship, French motorsportholds speed events at a regional and locallevel. The class structure of French speedevents is similar to that in the UK. The topcategory pitches large capacity singleseaters and sportscars, sometimes withold F1 engines, against each other. Belowthat will be various engine, size related,classes for single seaters, sportscars,saloons and Historic cars.

2.9.2

MARKET TRENDS

Speed events are at the grassroots ofEuropean motorsport. As such, thoughmany people may participate in the sport,the value of the segment is low. Our KeyInformants and Expert Panel confirmedthat the value of the segment was likely toremain constant over the next 5 years.

2.9.3

THE UK’S POSITION IN THE SPEEDEVENT SEGMENT

The top category of French speed eventssees large capacity single seaters like oldF3000 chassis from UK firms like Lola andReynard competing against purpose builtsportscars from the Italian firm Osella.Due to the cost of running these cars in anamateur sport, the numbers are relativelylow.

UK suppliers such as Hewland, NicholsonMcLaren, AP and Goodridge are involvedin supplying components for Frenchspeed events, particularly where theoriginal source of engine or chassismanufacture is British, but the value ofthat supply is low. As speed events are anamateur sport, UK companies will supplythe market through French distributors, asthe value of business in the segment willnot warrant a greater market presence



Table 15: Overview of the Speed Event Segment


(£m)

Speed Events 30

National Championnat de

France de la Montagne

Club Hillclimb, Sprint

25

2.10.

FRENCH OEM PERFORMANCEENGINEERING

2.10.1

OVERVIEW

Generally, OEM involvement withmotorsport currently comprises twodistinct roles. The first is OEMinvolvement in the motorsport seriesthemselves. This is exemplified by the roleof Renault Sport, Peugeot Sport andCitroen Sport.

The second is the use of motorsport firmsby the OEM as ‘performance engineering’consultants in more mainstream road carproduction. In this sense, motorsport is thepublic brand of performance engineering,where performance engineeringrepresents high value added, low-volumemanufacturing, through the combinedapplication of high technology engineeringdisciplines and creative design. UK firmssuch as Prodrive Automotive Technology,Lotus Engineering and Ricardo illustratethe sort of role a performance engineeringfirm can perform for OEM’s.

2.10.2

MARKET TRENDS

Our Expert Panel estimates that OEMPerformance engineering outsourcing inFrance may show increases over the next5 years. The general trend over the lastdecade in worldwide OEM manufacturinghas been vertical disintegration of theproduction process. Vehiclemanufacturers are increasingly becoming‘assemblers’ as they seek to outsource.The context of this change is an estimated25-30% overcapacity in European vehiclemanufacturing capacity in Europe. Weestimate, therefore, that the segment willincrease in value from £225m in 2003 to£271m in 2007.

This change in direction of OEMorganisation could lead to smaller, moreflexible factories than currently seen within

French OEM’s. It could also lead to theoutsourcing of specialist cars andservices, as small specialists produceknowledge intensive, branded cars forlarger OEM’s. This sort of work is currentlyundertaken mainly in house in the FrenchOEM’s. It will be a challenge for UKperformance engineering firms tounderstand, and then access, theseinternal markets.

Within France, the current role ofindependent performance engineeringfirms supplying the French OEM’s remainssmall. It would seem that the economicpower and political influence of the FrenchOEM’s has allowed them to assemble avertically integrated supply chain. Forexample, the formerly independentmotorsport and high performance road carspecialist Gordini and similarly Alpine,were absorbed by Renault in the sixtiesand seventies. Consequently, Renault haseffectively relied on ‘in house performanceengineering’ to a larger extent, while, onoccasion, utilising the services of someUK performance engineering companiessuch as Ricardo and the former UK TWRGroup.

Few French firms seem capable ofoperating in the area of outsourcedperformance engineering undertaken byUK firms like Prodrive, Lotus or Ricardo.Some firms do exist, like NogaroTechnologies and Danielson Engineering,but they are relatively small scale testingand prototyping firms compared to thestrength and expertise of their UKcounterparts.

2.10.3

THE UK’S POSITION IN THE FRENCHOEM PERFORMANCE ENGINEERINGSEGMENT

The UK’s motorsport industry has a longhistory of the knowledge intensive firm-supplier relationships needed to securePerformance engineering collaboration.Increasingly firms such as Prodrive, Lotusand Ricardo are utilising their motorsportexperience to move into the supply ofspecialist services, and indeed wholevehicles, to the OEM industry.

Developing an understanding of theFrench OEM’s, their current performanceengineering requirements, their currentsuppliers, and their needs and futuredemands in this segment may open upopportunities for some of those internalperformance engineering markets to UK-based suppliers. Our Expert Panelconfirmed that developing anunderstanding of, and relationship with,the OEM’s would be the key to developingthis market.

Leveraging the motorsport-orientedconnections available to existing UKsuppliers with French OEM competitiondepartments could present an opening.Several UK motorsport and performanceengineering firms are heavily linked withFrench OEM competition departments,and may be able to utilise these pre-existing links to leverage the internal OEMperformance engineering market to theiradvantage.

SECTION 2.10


Table 16: Overview of the OEM Performance Engineering Segment


(£m)

OEM’s Not applicable 225

26

3.0

THE FRENCH MOTORSPORT SUPPLYCHAIN

There are two main methods suggestedby our Expert Panel to supply the Frenchmarket:

1. Sell direct to end user

This method is the primary one utilisedwhere the product is sold on performancemore than price. In this case a UKmanufacturer would build up a technicalrelationship with a proven team in aspecific category. This close relationshipwould normally require the presence ofthe UK personnel at test days and racemeetings, in order that technical feedbackbetween manufacturer and end user wasmaximised.

This would be the preferred method whereUK companies are dealing with thecompetition departments of FrenchOEM’s, for example.

2. Independent Distributor

This is the preferred option by most of theUK industry when supplying the Frenchmarket. Where a product line is stable,price controlled and not subject to rapidinnovation, this method of supply workswell for UK suppliers.

In France there are three main distributorscovering most of the market for UKsuppliers; Gtii, Danielson Equipment andORECA.

4.0

DOING BUSINESS WITH FRANCE

The French motorsport industry is stronglydominated by the OEM’s, Renault,Peugeot and Citroen. While such OEMdomination is prevalent to a greater orlesser extent in all the three Europeancountries surveyed, arguably the FrenchOEM influence is proportionally highest.This leads us to suggest that the key toaccessing the French motorsport marketis to develop an understanding of theFrench OEM’s needs and culture, in orderto access that key internal OEMinfluenced motorsport market.

The French motorsport industry is one ofthe most insular in Europe. The industry inFrance is more domestically orientedtowards its own domestic motorsportseries than are Germany, Italy or the UK.

UK firms attempting to access the Frenchmarket are likely to face languagerequirements. Many firms will notnecessarily speak English as they do notperceive their market to be outsideFrance.

The inward looking nature of much of theFrench industry might present problemswhen UK firms attempt to access themarket. Information and statistics on theindustry were extremely hard to discover.

STAGE 1 • SECTION 3.0 / 4.0

27

5.0

SELECTING THE NICHES OFBUSINESS OPPORTUNITYFOR THE UK MOTORSPORT ANDPERFORMANCE ENGINEERINGSECTOR

5.1

OVERVIEW

Stage One provided an overview ofmarket scale, scope and trends. StageTwo involved the detailed investigation oftwo selected Niches of BusinessOpportunity. The following section outlinesthis process of selection.

In summary, the recognised competencesof the UK Motorsport and Performanceengineering industry were cross-referenced with identified market trendsand established knowledge of the Frenchmarket segments, as outlined in StageOne. This provided several choices ofmarket segment for further considerationand research.


FOOTNOTES

Note 1 - Data Acquisition; from ‘intelligent’ instrumentation to full two-way telemetry systemsNote 2 - Motorsport components; including brakes, clutches, gearbox, gearbox components, hydraulic transfer, suspension components, fuel cells,engine components, fuel injection, engine management, turbochargers, safety equipment and exhausts.Note 3 - Mechanical Engineering Development; Test and motion simulation (e.g. 7 poster rigs), modelling software (e.g. CAD, FEA, CAE).Note 4 - Aerodynamic Research; Wind tunnels (e.g. moving ground plane), computational fluid dynamics.

SELECTING NICHES OF BUSINESS OPPORTUNITY FOR THE UKMOTORSPORT AND PERFORMANCE ENGINEERING SECTOR

Strong Niche possibility

Medium Niche possibility

Weak Niche possibility

Specialist components

Data Acquisition(see Note 1 below)

Composites

General MotorsportComponents(see Note 2 below)

Mechanical EngineeringDevelopment(see Note 3 below)

Aerodynamic Research(see Note 4 below)

ProjectManagement

Core UK Motorsport IndustryCompetences relevant to theFrench market

Race Rally Off road(4x4)

DragRacing

Karting

Specialist components

Speedevents

Historic

Access to specialised equipment and services

Performanceengineering

Key

Table 17:Core UK Competences and French Market Segments

Race Rally Off road(4x4)

DragRacing

Karting Speedevents

Historic Performanceengineering

Table 18:Summary Table of French Niche Possibilities for UK companies

28

5.2

THE DECISION MAKING PROCESS

Market segments for investigation werechosen using the following method;

• An ‘Expert’ Panel;

- agreed an initial set of UK Motorsport and Performance engineering competences.

- using the results from Stage One research, cross referenced this list of competences against potential to calculate the French market share and opportunities (see Table 17).

- Chose two Niches of Business Opportunity for the UK Motorsport and Performance engineering Industry (see Table 18).

• The process of selection was aided by production of a SWOT analysis (see Table 19).


SELECTING NICHES OF BUSINESS OPPORTUNITY FOR THE UKMOTORSPORT AND PERFORMANCE ENGINEERING SECTOR

Table 19:SWOT Analysis of UK Motorsport and Performance engineering in the FrenchMarket

Strengths (of UK in France)

1. Data acquisition

2. General Motorsport components

3. Mechanical Engineering Development

4. Aerodynamic Research

5. Project Management

Opportunities (for UK in France)

1 Data acquisition – Race, Rally

2 General Motorsport components

• Race, Rally, Off Road

3 Mechanical Engineering Development

• Race, Performance engineering

4 Aerodynamic Research

• Race, Performance engineering

5 Project Management

• Performance engineering

Weaknesses (of UK in France)

1. Services - insurance?

Threats (to UK from France)

1 One-make formulae made outside UK and promoted by Renault.

2 Engines - Renault Sport, Mecachrome, Sodemo, JPX.

29

Stage Two:

THE FRENCH MOTORSPORT ANDPERFORMANCE ENGINEERINGMARKET – NICHES OF BUSINESSOPPORTUNITY FOR UK COMPANIES

The niches of business opportunity for theUK motorsport and performanceengineering industry were chosen as:

• Sportscar/GT Teams

• Supertourisme Teams

20 end user interviews were carried out.Half of the interviews were carried out faceto face, with the remainder undertaken bytelephone.

1.0

SPORTSCAR/GT TEAMS

1.1

CORE UK COMPONENTCOMPETENCES AND FRENCH END USER RATES

The Expert Panel designated 11 areas ofUK competence in componentmanufacture for this niche. The FrenchEnd Users were asked to rate theirpurchasing frequency of items within eacharea of UK industry competence. Theresults are seen in Diagram 3 right;

1.2

MOST POPULAR WAY OF SUPPLYINGTHE MARKET IN FRENCHSPORTSCAR/GT TEAMS

In the 11 areas of component competenceoutlined previously, the End Users wereasked to identify the most popular methodof supplying the French Sportscar/GTteams (Diagram 4);

1.3

CORE UK TESTING ANDDEVELOPMENT SERVICESCOMPETENCE AND FRENCH END USER RATES

The Expert Panel designated 5 areas ofUK competence in Testing and

Development services for this niche. TheFrench End Users were asked to rate theirpurchasing frequency of services withineach area of UK industry competence.The results are seen in Diagram 5 overleaf


THE FRENCH MOTORSPORT AND PERFORMANCE ENGINEERINGMARKET – NICHES OF BUSINESS OPPORTUNITY FOR UK COMPANIES

Exhausts

Safety Equipment

Instruments

Suspension Components

Engine Management

Gearbox Components

Clutches

Brakes

Fuel Injection

Engine Components

Data Acquisition

0 1 2 3 4 5 6 7 8 9 10

Component usage rate per year

Diagram 3:Core UK Component Competences and French Sportscar / GT End UserUsage Rates

Method of Supplying the Market

Mail Order Direct Distributor Track

Num

ber o

f E

nd U

ser R

eplie

s 6

3

0

Diagram 4:Most Popular Source of Component Supply for French Sportscar / GT End Users

30

1.4

CURRENT SUPPLIER RATING BY THEEND USER

French Sportscar/GT Team End Userswere asked to rate their current suppliersqualities in a number of areas on a scalefrom 1 to 5, where 5 was the highest rating(Diagram 6);

1.5

WHY AND HOW END USERS DECIDETO BUY NEWCOMPONENTS/SERVICES

French Sportscar/GT Team End Userswere asked why (Diagram 7), and how(Diagram 8), they went about buying andsourcing new components/services fromsuppliers;



Innovation

Quality

Cost

Service

Back up

IT

Project Management

Technical Capability

Working Relationships

1 1.5 2 2.5 3 3.5 4 4.5

Average Rating 1-5

Sup

plie

r Q

ualit

ies

Diagram 6:Supplier Rating: Sportscar / GT Teams

0 1 2 3

Wind Tunnels

CFD

Data Acquisition

Test and motion simulation

Modelling Software

Services usage rate per year

Diagram 5:Core UK Testing and Development Services Competences and French Sportscar / GT End User Usage Rates

Regulatory

Events in non French Series

Events in other French Series

Exhibitions

Media Advertising

What the competition uses

Shortfall in existing components

0 1 2 3

Number of End User replies

Diagram 7:What Prompts you to buy New Components/Services?: Sportscar / GT Teams

31

1.6

PERCEPTIONS OF UK COMPANIESAND THE BEST WAY TO SUPPLY THESPORTSCAR/GT TEAM NICHE

French Sportscar/GT team End Userswere asked, firstly, their perceptions of UKcompanies already supplying the Niche(Diagram 9). Secondly, how they thoughtUK companies should best supply themarket (Diagram 10);

1.7

FUTURE PRODUCT DEMAND IN THESEGMENT

French Sportscar/GT End Users wereasked;

• “If there was one new product you wereseeking in the next two years, what would it be?”

The top three answers were;

• High performance car batteries (1 reply).

• Engine bench facilities (1 reply).

• Reliable sequential gearbox with ‘shift down option’ (1 reply).

1.8

ADVICE FOR UK COMPANIES

French Sportscar/GT End Users wereasked;

• “What would be the best single piece ofadvice you would give to a UK companyentering the market?”


• Speak French (3 replies).

• Have a circuit presence at meetings (2 replies).

• Have a company representative based in France (2 replies).


THE FRENCH MOTORSPORT AND PERFORMANCE ENGINEERING MARKET– NICHES OF BUSINESS OPPORTUNITY FOR UK COMPANIES

Urgency in product need

Need for Specialised Applications

Need for Training

Quick Delivery and Service

Usage Rate

Continuous Development

Technically Innovatory

Price dependent

1 1.5 2 2.5 3 3.5 4 4.5

Average Rating 1-5

Diagram 8:What Supplier Qualities are the End Users looking for?; Sportscar / GT Teams

Innovation

Quality

Cost

Service

Back up

IT

Project Management



2 2.5 3 3.5 4 4.5 5

Average Rating 1-5

Sup

plie

r Q

ualit

ies

Internet Mail order Distributor French Track Representative

Method of Supply

Ave

rage

End

Use

r R

atin

g 1-

5

5

4

3

2

1

0

Diagram 9:Capability of UK Companies already in the Sportscar / GT Segment

Diagram 10:Best Way for UK Companies to Supply the Market in the Sportscar / GT Segment

32

2.0

SUPERTOURISME TEAMS

2.1

CORE UK COMPONENTCOMPETENCES AND FRENCH ENDUSER RATES

The Expert Panel designated 12 areas ofUK competence in componentmanufacture for this niche. The FrenchEnd Users were asked to rate theirpurchasing frequency of items within eacharea of UK industry competence. Theresults are seen in Diagram 11.

2.2

MOST POPULAR WAY OF SUPPLYINGTHE MARKET IN FRENCHSUPERTOURISME

In the 12 areas of component competenceoutlined previously, the End Users wereasked to identify the most popular methodof supplying the French Supertourismeteams (Diagram 12);



Exhausts

Safety Equipment

Instruments

Suspension Components

Engine Management

Gearbox Components

Clutches

Brakes

Fuel Injection

Engine Components

Data Acquisition

0 1 2 3 4 5 6 7 8 9 10

Component usage rate per year

Composites

Diagram 11:Core UK Component Competences and French Supertourisme End UserUsage Rates

Method of Supplying the Market

internet Direct Distributor Track

Num

ber o

f End

Use

r Rep

lies 6

3

0

Diagram 12:Most Popular Source of Component Supply for French Supertourisme End Users

33

2.3

CURRENT SUPPLIER RATING BY THEEND USER

French Supertourisme team End Userswere asked to rate their current suppliersqualities in a number of areas on a scalefrom 1 to 5, where 5 was the highest rating(Diagram 13);

2.4

WHY AND HOW END USERS DECIDETO BUY NEW COMPONENTS

French Supertourisme team End Userswere asked why (Diagram 14), and how(Diagram 15), they went about buying andsourcing new components from suppliers;



Innovation

Quality

Cost

Service

Back up

IT

Project Management



1 1.5 2 2.5 3 3.5 4 4.5

Average Rating 1-5

Sup

plie

r Q

ualit

ies

Diagram 13:Supplier Rating: Supertourisme Teams

Events in non French Series

Events in other French Series

Exhibitions

Media Advertising

What the competition uses

Shortfall in existing components

0 1 2 3 4

Number of End User replies

Diagram 14:What Prompts you to Buy New Components?: Supertourisme Teams

Urgency in product need

Need for Specialised Applications

Need for Training

Quick Delivery and Service

Usage Rate

Continuous Development

Technically Innovatory

Price dependent

1 1.5 2 2.5 3 3.5 4 4.5

Average Rating 1-5

Diagram 15:What Supplier Qualities are the End Users Looking for?: Supertourisme Teams

34

2.5

PERCEPTIONS OF UK COMPANIESAND THE BEST WAY TO SUPPLY THEFRENCH SUPERTOURISME TEAMNICHE

French Supertourisme team End Userswere asked, firstly, of their perceptions ofUK companies already supplying theNiche (Diagram 16). Secondly, they wereasked how they thought UK companiesshould best supply the market (Diagram17);

2.6

FUTURE PRODUCT/SERVICEDEMAND IN THE SEGMENT

French Supertourisme End Users wereasked;

• “If there was one new product/service you were seeking in the next two years,what would it be?”

The top two answers were;

• Cheaper engine packages (3 replies)

• More durable body panels (1 reply)

2.7

ADVICE FOR UK COMPANIES

French Supertourisme End Users wereasked;

• “What would be the best single piece ofadvice you would give to a UK companyentering the market?”


• Speak the language (2 replies)

• Understand the French way of thinking (1 reply)

• Employ a French representative(1 reply)



Innovation

Quality

Cost

Service

Back up

IT

Project Management



1 1.5 2 2.5 3 3.5 4 4.5

Average Rating 1-5

Sup

plie

r Q

ualit

ies

Diagram 16:Capability of UK Companies already in the Supertourisme Segment

Method of Supply

Internet Mail Order Distributor Race Shop Track

Num

ber o

f End

Use

r Rep

lies 6

3

0

Diagram 17:Supplier Rating: Supertourisme Teams

35APPENDICES

36

FRENCH CIRCUITS

The FFSA is the main organising body formotorsport in France. There are 100 karttracks in France (Source: FFSA) and 10permanent road-racing courses (Source:Autosport Eurocircuit Guide 2003). PaulRicard in the South of France is usedsolely for F1 testing.

The 10 permanent road racing circuits arelisted below, together with websiteaddresses;

1. Albi; www.circuit-albi.com

2. Charade; www.charade.fr

3. Croix-en-Ternois; www.circuitdecroix.com

4. Dijon; www.circuit-dijon-prenois.com

5. Ledenon; www.ledenon.com

6. Le Mans; www.lemans.org

7. Magny Cours; www.magny-cours.com

8 Montlhery; www.montlhery.com/autodrom.htm

9. Nogaro; www.circuit-nogaro.com

10. Val de Vienne;

www.circuit-valdevienne.com

APPENDIX ONE

STATISTICS ON MOTORSPORT IN FRANCE

Market Segment (Source:FFSA)

Num

ber

of C

ompe

titor

s

50,000

40,000

30,000

20,000

10,000

Circuit racing,off road,

hillclimb, sprintand rally

Karting Drag Historic

34,200

18,100

11

1,540

The Number of French Motorsport Competitors by Segment in 2003

37APPENDIX TWO

DECISION MAKERS AND OEM INFLUENCE

Market Segment

1. Single Seater Racing

2. Saloon Racing

Professional

Amateur

3. Drag Racing

4. Historic

5. Rallying

6. Off Road

7. Sportscar racing

Professional

Amateur

8. Karting

9. Speed Events

Major Decision Makers

Renault Sport

Peugeot, FFSA

Peugeot

FFSA

ACO, Peter Auto

Peugeot, Citroen, Renault

Paris-Dakar Organisation, Nissan,

Toyota, Mitsubishi; Rallycross -

Citroen

ACO (Le Mans), Stephan Ratel

Organisation (SRO), Porsche

Exess Competition

FFSA

Relationship to OEM’s

High

Strong

Medium

Weak

Weak

Strong

Strong

Medium

Low

Low

Low

38APPENDIX THREE

EXAMPLES OF INDIGENOUS AND OVERSEAS SUPPLIERS IN THE FRENCH MARKET

Market Segment

1. Single Seater Racing

2. Saloon Racing

Professional

Amateur

3. Drag Racing

4. Historic

5. Rallying

Indigenous or imported?

BothItalian and UK

Indigenous

Indigenous

Indigenous

BothEurope wide but strong UK

presenceBoth - UKIndigenous

BothUK,

Major French Suppliers

Chassis - Mygale (FF),Nogaro Technologies

(FR Campus) Gearbox - SADEV

Engines - Mecachrome,Chambon, JPXCams - MTS

Brakes - Carbone IndustrieTyres - Michelin

Data Acquisition Sensors -Atex

Fasteners - Blanc AeroTechnologies

Hose and Fittings - ACC LaJonchere

Safety - Stand 21Coatings - SOREVI, ICC

Chassis - ORECA, SolutionF, SNBE, Danielson

EngineeringEngine - SODEMO;Gearbox - SADEV;

Fasteners - Blanc AeroTechnologies

Hose and Fittings - ACC LaJonchere

Peugeot One-make:Gearbox - SADEV

Component Suppliers -Jacquemin Tuning, USA

equipment importers

Organisers - TOP, ACO,Peter Auto

Teams - Peugeot Sport,Citroen Sport, RenaultSport, Bozian, ORECAEngines - Pipo Moteur

Cams - MTSFasteners - Blanc Aero

TechnologiesHose and Fittings - ACC La

JonchereCoatings - SOREVI, ICC;

Safety - Stand 21;

UK suppliers and level ofinvolvement

MediumBrakes - Alcon, AP

Hose and Fittings - GoodridgeGearbox - Hewland

MediumHose and Fittings - Goodridge

Data Acquisition - Pi Brakes - AP

MediumHose and Fittings - Goodridge

Data Acquisition - Pi Brakes - AP

Low

MediumEngine - Knight Racing

DevelopmentCar Preparation more widely

MediumBrakes - Alcon, AP

Gearbox - Xtrac, HewlandHose and fittings - Goodridge

Chassis - LAD, Prodrive,Ralliart

Threat toUK fromFrance?

MediumEngines

Low

Low

Low

LowACO

Organisersreduce UKorganisers

involvement

Low

39APPENDIX THREE

EXAMPLES OF INDIGENOUS AND OVERSEAS SUPPLIERS IN THE FRENCH MARKET

Market Segment

6. Off Road

7. Sportscar racing

Professional

Amateur

8. Karting

9. Speed Events

10. Performanceengineering

Indigenous or imported?

Indigenous

Both UK, Italian

Both

Imported

BothItalian sportscars and UK

single seaters

Both

Major French Suppliers

Gearbox - SADEV; Chassis - Schlesser, Ralliart

France, Dessoude Competition; Safety - Stand 21;

Fasteners - Blanc AeroTechnologies;

Hose & Fittings - ACC LaJonchere

Chassis - Courage, Norma,WR, Debora, ORECA;Engines - SODEMO;

Safety - Stand 21;Fasteners - Blanc Aero

Technologies; Hose and Fittings - ACC La

Jonchere

FFrance - ExessCompetition

Chassis - Sodikart; Safety - Stand 21

Chassis - Martini, Norma;Fasteners - Blanc Aero

Technologies; Hose and Fittings - ACC La

Jonchere; Safety - Stand 21

Wind Tunnels - SardouGroup, ONERA, Institut

Aerotechnique; Chassis and Prototyping -

Solution F; DanielsonEngineering, Nogaro

Technologies; Fasteners - Blanc Aero

Technologies; Composites - Sardou Group,

Duqeine Composites;

UK suppliers and level ofinvolvement

MediumGearbox - Xtrac, Hewland,

Ricardo Hose and Fittings - Goodridge

Engines - Nicholson McLaren

MediumBrakes - AP

Gearbox - Xtrac, Hewland

Low

Low

MediumChassis - Reynard, Lola

Gearbox - Hewland Hose and Fittings - Goodridge

Brakes - APEngines - Nicholson McLaren

MediumRicardo

Threat toUK fromFrance?

Medium

Low

Low

Low

Low

Low

40APPENDIX FOUR

EMPLOYMENT FIGURES FOR A SAMPLE OF LEADING FRENCH MOTORSPORT AND PERFORMANCE ENGINEERING FIRMS

Name

Mecachrome

Renault Sport

Blanc Aero Technologies

Citroen Sport

Michelin (Competition Department)

MTS

Peugeot Sport

ORECA

Chambon

SADEV

JPX

Danielson Engineering

SOREVI

SODEMO

SNBE – Snobeck Racing Services

Exess Competition

Pipo Moteur

Mygale

Bozian Racing

ICC

EMPLOYMENT

670

(including non-motorsport)

500

210

200

200

150

140

140

120

112

110

96

62

60

42

40

30

24

20

12

Business

Engine Development

F1 Engine, One-make Race

Fasteners

WRC, One-make race and rally chassis

Tyres

Camshafts

WRC, One-make race and rally chassis

Sportscar, rally and off-road preparation

Engine Components (Crankshafts)

Gearbox

Engine Development

Engine Development; Prototyping

DLC Coatings

Engine Development

Saloon Preparation and Team

One-make Formula France

WRC Engine

Single Seat Chassis

WRC Team

DLC Coatings

Source: Company websites

Published August 2004© Motorsport Industry Association 2004 • All rights reserved.

No reproduction, copy or transmission of this publication may be made without the written permission of the MIA

The aim of the MIA is to provide a service and give advice to companies in the industry, and promote and protect their interests. Wealso provide information, assistance and encouragement to our membership in all aspects of business development, particularly inexport sales opportunities and in liaison with government. We promote the achievements of our members, and those of the industry, tothe business and general media.

The MIA was founded in 1994 and now has over 300 members, who transact over £5 billion of motorsport business worldwide.

Motorsport Industry AssociationFederation House • Stoneleigh Park • Warwickshire • CV8 2RF • UK

Tel: (02476) 692600 • Fax (02476) 692601Email: [email protected] • Web: www.the-mia.com

www.motorsport research.com

PREPARED FOR

PREPARED BY

Motorsport Research Associates66 Selly Wick Drive • Selly Park • Birmingham • B29 7JH • UK

Tel: (0121) 471 3880 • Email: [email protected]

ACKNOWLEDGMENTS

This project was completed with the kind support of:

Shell Racing Solutions

British Chamber of CommerceThe British Chamber of Commerce have provided support for this export marketing research project on behalf of UK Trade and Investment

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