By subh
July 6 2002

The Arrows team boss, Tom Walkinshaw, gave an interview to British host broadcaster ITV just ahead of the qualifying session. He described the current financial position in the wake of the latest public difficulties. As we have seen already, Arrows were reported to be heavily in debt to Cosworth, their engine suppliers for 2002, and even had to remove their cars from the Silverstone track on Thursday, without presenting them for scrutineering. Although the equipment was returned on Friday, and successfully completed a postponed inspection, the cars did not take to the track at all.

Tom Walkinshaw explained that the team had intended to secure extra funds through a planned investment deal, thought even to have been a buy-out, and this is believed to have come from current sponsor Red Bull. However, it seems that Morgan Grenfell, an Arrows shareholder, blocked this offer with a court injuction, leaving no funds for the overdue Cosworth payment. In addition, Arrows also had to face accusations of fraudulent trading, which Walkinshaw assured viewers was absolutely untrue.

In addition, Cosworth, part of the Ford-Jaguar group, were not prepared to let Arrows make use of their engines until payment was forthcoming, and so withheld the relevant electronic control units, or ECUs, on Friday. The crisis talks that ensued resulted in Cosworth receiving at least some of their money, and this allowed Arrows to actively take part during the remainder of the GP weekend. Failure to compete in every round of the championship results in a penalty from the FIA, motorsport’s governing body, which would only have exacerbated the situation.

A long term solution to these difficulties has yet to be found, but Tom was hopeful that common sense discussions would prevail, and that his team would be able to complete this season. Presumably he anticipates that Red Bull will ultimately be further involved in the team, which would put to rest any financial insecurities. This site will carry further information in the following days or weeks, as available.