Discretionary Commission Arrangements - Complaints and Refunds
The Ford Motor Company's fight with Ferrari and the creation of the GT40 is a fascinating tale of business, rivalry, and innovation. In 1963, Ford attempted to buy Ferrari, with the intention of entering international racing, particularly in the GT category. The story began when Henry Ford II and Lee Iacocca, then the head of Ford Italiano, came up with the idea of acquiring Ferrari. They saw the potential of buying the company to gain access to its expertise and facilities in the racing world.[1]
The negotiations between Ford and Ferrari were well underway, with both parties interested in the proposed merger. Ford was willing to form two companies out of the merger: Ford-Ferrari, with Ford as the majority stockholder, and Ferrari-Ford, where Ferrari would be the majority stockholder and in control of the racing company.[1]
However, the deal faced several obstacles. One of the main issues was Ferrari's reluctance to sever ties with Shelby American, as Ford felt an obligation to continue their relationship with the racing team. Another point of contention was Ford's lack of interest in Formula 1 racing, which was a significant part of Ferrari's racing program at the time.[1][4]
Despite these challenges, the negotiations progressed, with discussions on the emblems to be used on the various cars and the terms for the Ford-Ferrari part of the deal. However, when the talks turned to the racing company, Ferrari began to have doubts about the whole arrangement. He was concerned about Ford's control over the racing team and the potential conflict with Shelby American.[1][4]
In the end, the deal fell through, with Ferrari balking at the final contract terms. He was unwilling to relinquish control over the racing team and felt that the proposed arrangement would compromise his freedom as racing team director.[1][4]
Ford, determined to compete with Ferrari in the prestigious 24 Hours of Le Mans, decided to build a sports car that would outperform the Ferrari models. This led to the creation of the GT40, a car specifically designed to challenge Ferrari's dominance in endurance racing.[1][3][4]
The GT40 was a groundbreaking vehicle, with its sleek design and powerful engine. However, the initial models faced issues with stability and reliability, which were addressed through improvements in the transmission and other aspects of the vehicle.[1][3]
The Ford Motor Company's fight with Ferrari and the creation of the GT40 is a testament to the competitive spirit of the automotive industry and the lengths companies will go to achieve success on the racetrack.
References:
[1] "Ford GT40 Origins." Ford Motor Company, corporate.ford.com/articles/history/ford-gt40-origins.html.
[2] "Ford vs Ferrari, the story of the Ford GT40 on 'Behind the Headlights' - YouTube." YouTube, www.youtube.com/watch?v=MTaNjOPv6OU.
[3] "Ford vs. Ferrari: The 427 GT40X - 1965." Ford Motor Company, corporate.ford.com/articles/history/ford-gt40-origins-427-gt40x.html.
[4] "Ford GT40 - Wikipedia." Wikipedia, en.wikipedia.org/wiki/Ford_GT40.
[5] "History of Ford's GT: How Ford beat Ferrari with scotch tape - Car Keys." Car Keys, www.carkeys.co.uk/news/history-of-the-ford-gt-how-ford-beat-ferrari-with-scotch-tape.