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Thread: FSAE Australia : On thin ice.

  1. #1
    For those who haven't received this yet. I'm sure its just a matter of time:

    To All Potential Entrant Universities

    Following on from the great success of Formula SAE-A 2008 we are pleased to advise that this year’s event is scheduled to run over the 4 day period Thursday December 10 thru to Sunday December 13 at the Victorian University Industrial Skill Centre Werribee, Victoria.

    2009 will be the first year Formula SAE-A will be open to both conventional fuelled vehicles as well as units calibrated to run and operate on Ethanol based fuel. In addition, invitations are also extended to Universities wishing to display any electric powered vehicles developed throughout 2009. It is not intended to include an electric vehicle competition category for 2009 but dependant on the interest expressed consideration will definitely be given to the creation of this competition category in coming years.

    Formula SAE-A 2008 attracted entrants from 17 Universities all around Australia as well as 7 very competitive entrants from overseas. The number and quality of last years entrants gives an indication of the excellent reputation this even has gathered amongst University campuses over the number of years Formula has been hosted and run by SAE-A and we intend to continue on building and expanding the program through the introduction of alternate fuel and / or energy categories going forward.

    For those who have competed or attended past Formula events it will come as no surprise to be informed that the SAE-A budget required to run such a large quality event is quite substantial. Given that SAE-A is a not for profit organisation we have in the past relied heavily upon the fantastic financial support extended by a consortium of Australian Vehicle Manufacturers i.e. GM Holden, Ford, Toyota and Mitsubishi along with additional financial and services in kind support received from a number of other contributors. In this regard, 2009 is proving to be a particularly challenging year for SAE-A as our major past supporters, i.e. the Australian vehicle consortium, are all finding it exceedingly difficult to allocate sponsorship funding for this very worthwhile event in 2009. All agree on the absolute importance of the event in supporting the development of young engineers for the local industry in the longer term but are understandable facing extreme pressures from their own overseas parent companies to trim operational costs and to generally cut back sponsorships in areas considered non essential to the running of the local operations.

    In recognition of the difficulties facing the industry over the coming year SAE-A has been working extremely hard since February 2009 to attract additional funding support from all possible sources, both government and non government. Unfortunately, the Global Financial Crisis is affecting all businesses and hence attracting new sponsorship for Formula SAE-A 2009 is proving to be an extremely difficult task.

    SAE-A, with the support and encouragement of the local automotive industry is determined to ensure that Formula SAE-A 2009 proceeds and builds on its reputation as a quality event. For this reason we have spent quite a deal of time reviewing every cost associated with the running of past events in order to seek cost savings where possible but without wishing to in any way compromise the integrity of Formula SAE-A.

    Although we are working towards a fully sponsored Event this year, we need to also consider the possibility of the Event being “self funded”. As a result we seek your comment & advice regarding the option that would see an increase in the Entry Fee paid by the participating Universities which in turn, would go toward the running of the Event accordingly. By our estimation, the revised Entrance Fee would need to be in the order of $7,250 per vehicle entry. We understand that this would represent quite a significant increase over past years but, given the well publicized current global financial crisis it may be that SAE-A has no alternative if the Event is to be staged this year & to ensure the ongoing value, integrity and viability of the Australian Formula SAE-A event.

    To enable SAE-A to be in a position to consider all options, please advise your comments & ability to participate should it be necessary for SAE-A to introduce the above stated increased participation fee in order to see this event proceed in 2009. Your response to the undersigned would be appreciated by Wednesday May 13, 2009
    I think that $7,250 could kill a lot of teams. Taking the competition with it. We are (I think?) the smallest F-SAE competition in the world, we've had trouble getting competitors previously.

    Where does this leave us now?
    ---------------------------
    2006 QUT Motorsport - Manufacturing Manager
    2007 QUT Motorsport - Controversy Raiser
    2008 University of Waterloo Formula Motorsports - Exchange Student / Electrical Team Manager
    2009 The University of Adelaide Motorspo

  2. #2
    For those who haven't received this yet. I'm sure its just a matter of time:

    <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">To All Potential Entrant Universities

    Following on from the great success of Formula SAE-A 2008 we are pleased to advise that this year’s event is scheduled to run over the 4 day period Thursday December 10 thru to Sunday December 13 at the Victorian University Industrial Skill Centre Werribee, Victoria.

    2009 will be the first year Formula SAE-A will be open to both conventional fuelled vehicles as well as units calibrated to run and operate on Ethanol based fuel. In addition, invitations are also extended to Universities wishing to display any electric powered vehicles developed throughout 2009. It is not intended to include an electric vehicle competition category for 2009 but dependant on the interest expressed consideration will definitely be given to the creation of this competition category in coming years.

    Formula SAE-A 2008 attracted entrants from 17 Universities all around Australia as well as 7 very competitive entrants from overseas. The number and quality of last years entrants gives an indication of the excellent reputation this even has gathered amongst University campuses over the number of years Formula has been hosted and run by SAE-A and we intend to continue on building and expanding the program through the introduction of alternate fuel and / or energy categories going forward.

    For those who have competed or attended past Formula events it will come as no surprise to be informed that the SAE-A budget required to run such a large quality event is quite substantial. Given that SAE-A is a not for profit organisation we have in the past relied heavily upon the fantastic financial support extended by a consortium of Australian Vehicle Manufacturers i.e. GM Holden, Ford, Toyota and Mitsubishi along with additional financial and services in kind support received from a number of other contributors. In this regard, 2009 is proving to be a particularly challenging year for SAE-A as our major past supporters, i.e. the Australian vehicle consortium, are all finding it exceedingly difficult to allocate sponsorship funding for this very worthwhile event in 2009. All agree on the absolute importance of the event in supporting the development of young engineers for the local industry in the longer term but are understandable facing extreme pressures from their own overseas parent companies to trim operational costs and to generally cut back sponsorships in areas considered non essential to the running of the local operations.

    In recognition of the difficulties facing the industry over the coming year SAE-A has been working extremely hard since February 2009 to attract additional funding support from all possible sources, both government and non government. Unfortunately, the Global Financial Crisis is affecting all businesses and hence attracting new sponsorship for Formula SAE-A 2009 is proving to be an extremely difficult task.

    SAE-A, with the support and encouragement of the local automotive industry is determined to ensure that Formula SAE-A 2009 proceeds and builds on its reputation as a quality event. For this reason we have spent quite a deal of time reviewing every cost associated with the running of past events in order to seek cost savings where possible but without wishing to in any way compromise the integrity of Formula SAE-A.

    Although we are working towards a fully sponsored Event this year, we need to also consider the possibility of the Event being “self funded”. As a result we seek your comment & advice regarding the option that would see an increase in the Entry Fee paid by the participating Universities which in turn, would go toward the running of the Event accordingly. By our estimation, the revised Entrance Fee would need to be in the order of $7,250 per vehicle entry. We understand that this would represent quite a significant increase over past years but, given the well publicized current global financial crisis it may be that SAE-A has no alternative if the Event is to be staged this year & to ensure the ongoing value, integrity and viability of the Australian Formula SAE-A event.

    To enable SAE-A to be in a position to consider all options, please advise your comments & ability to participate should it be necessary for SAE-A to introduce the above stated increased participation fee in order to see this event proceed in 2009. Your response to the undersigned would be appreciated by Wednesday May 13, 2009 </div></BLOCKQUOTE>

    I think that $7,250 could kill a lot of teams. Taking the competition with it. We are (I think?) the smallest F-SAE competition in the world, we've had trouble getting competitors previously.

    Where does this leave us now?
    ---------------------------
    2006 QUT Motorsport - Manufacturing Manager
    2007 QUT Motorsport - Controversy Raiser
    2008 University of Waterloo Formula Motorsports - Exchange Student / Electrical Team Manager
    2009 The University of Adelaide Motorspo

  3. #3
    7250$ - that's 4000 Euro for the european Teams.
    Last year we thought about participating in Australia but failed to decide on time to register.
    But a short overview of costs for teams from Europe showed us that a trip to Detroit/US is less expansive (to say the least). I think in the last 3 years at least one team from Europe participated and there were very exicted about the event and the country.
    I think such a high entrance fee would give all potential european participants a head shot for this trip.
    I did not meet a Australian team at competition and I do not know anything about their financial background, so I can not say how much 7k is for them. For me it sounds pretty much.
    Hopefully they will find cheaper way for the teams to launch the event.

    I can not hear anymore the words global financial crisis....
    Best regards from Graz,
    Thomas

  4. #4
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  5. #5
    It will be very sad if it comes to the point where fees are that high, because I agree - it will cut the numbers down significantly. I suspect a lot of teams would have to operate on a 2 year cycle, which in my opinion is a bad way for teams to go. Some might even fold completely (I know at least one team for whom that is more than their annual budget). For us (and other international teams), who already have the expenses of freighting the car back and forth to Australia, that kind of increase would severely hurt our ability to produce a car and compete every year.

    It's a shame to see companies making short-sighted cost-cutting measures like this, I really hope SAE-A is able to secure some form of corporate backing.
    Malcolm Graham
    University of Auckland '06-'09
    www.fsae.co.nz

  6. #6
    If you ignore the accomodation and transport costs for team members themselves, a figure like that makes competitions in other countries become a lot more attractive.

  7. #7
    <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by brettd:
    If you ignore the accomodation and transport costs for team members themselves, a figure like that makes competitions in other countries become a lot more attractive. </div></BLOCKQUOTE>

    My thoughts exactly.
    ---------------------------
    2006 QUT Motorsport - Manufacturing Manager
    2007 QUT Motorsport - Controversy Raiser
    2008 University of Waterloo Formula Motorsports - Exchange Student / Electrical Team Manager
    2009 The University of Adelaide Motorspo

  8. #8
    Senior Member
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    Stuttgart
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    494
    Perhabs the organizers forget the fact that they are not the only ones who have problems to find sponsors.

    I can only say that we definitely wouldn't have taken part last year if the fee would have been that high.
    Rennteam Uni Stuttgart
    2008: Seat and Bodywork
    2009: Team captain

    GreenTeam Uni Stuttgart
    2010: Seat and Bodywork / Lamination whore

    Formula Student Austria
    2012: Operative Team

  9. #9
    <BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Bemo:
    Perhabs the organizers forget the fact that they are not the only ones who have problems to find sponsors. </div></BLOCKQUOTE>

    What do you suggest? They cannot pull money from the nearby stream. Saying they haven't considered the impact is slighting SAE-A. I'm sure this is a last resort. Either run the competition with the higher fees, or don't run it at all.

    Considering this, I'd expect the Detroit 2010 competition to have a similar fee increase. After all, Ford and GM are the reason for SAE-A's increase and we all know Chrysler isn't in a position to fill in for them! The 2009 donations were likely already given...
    mmmm..... Garlic.

  10. #10
    We were talking about this very thing for about 20 mins with Steve Daum at VIR. He said that finding sponsors is getting really tough, and may have to require teams to supply members to work corners (like a real autocross)... Apparently by this time last year, he had already had more than enough volunteers provided by companies to help with the events, however, this year, it's not looking good for MIS.

    Same goes with funding for the event. He said the track rental for the California event is around $100,000 and then there's insurance (which we know must be a ton) and of course finding volunteers for the event is still a bit sketchy. They're trying like hell find ways to pay for these events, but he fully understands that all teams are financially hurting, as he's gotten a lot of calls from teams saying they just can't afford to come...

    An increase in registration fees for next year is a given- how much is up to how well they can find new sponsors. They are even considering doing a competition every other year, just to save on costs, and to help get more teams out.

    Of course this is the situation in the states, hopefully something reasonable can be figured out among all the international competitions.
    Sooner Racing Team
    University of Oklahoma
    Chief Engineer 08-09
    Team Captain 06-08

    sae.ou.edu

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