RJ Reynolds Create a Smoke Screen - tobacco company - Brief Article

Auto Racing Digest, Sept, 2001 by David Stone

This spring, a group of Formula One auto makers--specifically BMW, Mercedes, Ferrari, and Jaguar--threatened to form a new racing circuit that would compete with F1 [please also see feature beginning on page 50]. Paolo Cantarella, the CEO of Fiat, which owns Ferrari, and chairman of the European Car Makes Association, said that the auto makers had joined together in the best interests of the sport after they began to fear that F1 would no longer be broadcast on free television.

Immediately after the threat, KirchGroup, an F1 majority owner, changed its stance and assured the auto makers that the sport would not switch to pay-per-view. KirchGroup also offered a minority ownership interest in F1 to the auto makers, as well as veto power on a number of subjects, including pay-per-view and scheduling.