MILAN, Italy (May 10, 2010)—Pirelli & C. S.p.A.'s bid to become the designated tire supplier for Formula 1 racing will be structured so the company turns a profit on the business, Pirelli's top executive told analysts.
Pirelli CEO Marco Tronchetti Provera said this will be a change from the past, where there was a net flow of money out of the sponsor.
Pirelli is set to submit its technical and commercial offer for the contract at this weekend's Spanish Grand Prix—where it also debuts as the spec tire supplier for the new GP3 Series, a stepping-stone series to GP2 Series, which itself considered a feeder venue for Formula 1. GP3 features a Dallara chassis powered by a turbocharged 2-liter four-cylinder Renault engine.
Pirelli was an F1 tire supplier on at least two occasions in the past, the last time from 1988-91. It also weighed bidding for the contract four years ago when it last came up for offer.