Ing Set To Make 40% Cut On F1 Spend
Dutch financial services group ING, one of the biggest commercial partners in motorsport, is set to cut its sponsorship spend on F1 by 40%.
According to reports, ING will honour its 3 race sponsorship contracts with F1 and its title deal with Renault but will cut back on hospitality and F1-related marketing and assess later this year whether or not to continue its sponsorship beyond 2009.
The move comes as the firm said that it expects to report a net loss of €3.3bn for the fourth quarter and a €1bn loss for the full year.
The Dutch savings bank has promoted its association with the sport heavily in recent years, launching a global marketing campaign earlier this year starring Spanish driver Fernando Alonso who the bank also sponsors.
ING officially commented that it is to cut operating expenses by £1bn this year, 35% of which will come from axing 7,000 jobs and the rest ‘from decreasing costs for our head office, marketing, the F 1 program, consultancy, third-party staff and the renegotiating of certain contracts with IT-vendors.’
The expected losses prompted chief executive Michel Tilmant to announce he will step down from his position and retire in August.
