Job fears as Caterham Formula 1 manufacturer hits the skids

The company which designs and builds the cars used by the Caterham Formula 1 team has been put into administration

Caterham Formula 1
A Caterham Formula 1 racing car in action Credit: Photo: Caterham

The Formula 1 manufacturer which designs and builds the cars used by the Caterham team has gone into administration, casting doubts over the team’s future and potentially hundreds of jobs.

Accountants Smith & Williamson have been appointed as administrators to Caterham Sports Limited (CSL), which is based Leafield, Oxfordshire, in Britain’s “motorsport valley” where many of the world’s leading motor racing companies are based.

CSL provides services to 1 Malaysia Racing Team (1MRT), the Malaysian company which operates the Caterham F1 Team in the Formula 1 World Championship.

Administrators said they have been engaged in “positive” talks with the racing team to see if CSL can continue to supply it but said that if an agreement cannot be reached they will begin discussions about selling the company’s assets.

Administrator Finbarr O’Connell said although the around 200 staff working in CSL’s factory had their contracts transferred over to 1MRT in the past few weeks, he said their jobs could be at risk if an arrangement is not struck soon.

“As administrator I control the machines they are working on, the computers, the factory, the intellectual property. If I don’t do a deal with 1MRT then they will have nothing to work on and their jobs could be at risk.”

Mr O’Connell was appointed as administrator to CSL by the company’s bank. Constantin Cojocar, CSL’s sole director, had applied to put the company into insolvency through a court order. Mr Cojocar said in legal papers he expected to receive £2m a week from backers which would be used to pay creditors but when this money did not arrive he had no choice but to request the company be put into administration.

The administration places further pressure on the Caterham racing team which is currently standing in last place with zero points this season.

Earlier this month bailiffs turned up at the Leafield factory, driving the team to put out a statement ahead of the race at Suzuka on October 5. In it the racing team condemned “unfounded and unsubstantiated rumours concerning actions against 1MRT, the entrant and owner of Caterham F1”.

“An action was threatened against a supplier company to 1MRT. This company is not owned by 1MRT and it has no influence over the entry of Caterham F1 or the entrant,” it added. “Contrary to uncontrolled rumours, all operations are currently in place at Leafield.”

A spokesman for the racing team said: "CSL going into administration does not affect the Formula 1 team in any way, as we are not part of it."