Whatever Redbull or Mercedes are doing, l am sure they would be spending more than $2.5m on this season's car by the time we get to Abu Dhabi.
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As Horner is a Brit I'm sure he likely meant GBP which would be almost $3.5m.
Maybe they will change their allocated budget depending on how tight the battle is, well they will almost definately have to now.. but believe it or not, that was the figure mentioned.
Remember the cost capped $145m (£104m) budget is a huge reduction on what teams like Red Bull and Merc could previously spend and with the importance of having to also develop a whole new car for 22 rather than a mere evolution of this years car, the have to find a pot to limit and that is about the only one they can if they dont want to also compromise the next 5-6 years by being behind from the get go.. so I do find it believable.
What makes you think this seasons development of the 22 car comes out of next seasons budget.. do you have a link? I dont remember ever reading about that anywhere and it would be rather strange accounting to say the least... officially FIA sanctioned due to the car change?
As a 'Company Director' as stated in your profile, I'd have thought you'd have a really strong grasp on finances.. or is that just complete BS too?
This is a good video which shows the double standard that Christian Horner and Max apply to themselves compared to Silverstone this year. Look at Portugal and the botched overtake attempt he did on (I think it was Stroll IIRC) and how he "stuck a wheel up the inside". He was never going to make that corner. On the other hand, going into Copse in Silverstone, Lewis front wing was past Max's front Wheel but yet they think that what Max did in Portugal was acceptable and not what Lewis did in Silverstone. Both are relatively fast corners (Copse faster) but if Max was entitled to attempt and overtake in Portugal, Hamilton was 100% entitled to attempt the overtake at Copse.
https://www.youtube.com/watch?v=0nPVvwactoA