Pirelli who has been sole supplier of tyres to Formula One team since 2010. They replaced Bridgestone before taking over the mandate.
It is learnt that their contract is set to expire at the end of 2019 season and they are keen to extend the deal, but on one condition; they will not bid.
According to a report on Autosport, Marco Tronchetti Provera, company’s executive Vice Chairman and Chief executive officer said that despite the deal working well for them they are not going to be held to ransom and they are looking for similar commercial terms to their present contract.
Pirelli has huge international footprints in motorsports and hence they can afford to bargain with Formula One. According to Autosport Pirelli are sole tyre supplier to the World Superbike Championship, and support 460 car and bike events each year.
A Pirelli spokesperson told Autosport “As we have always said, Formula 1 is a good match for us and we are happy and honoured to stay there.”
“But if it comes down to a bidding war, we would not stay at any cost.”
During these years as a sole supplier they introduced several compounds. They are introducing a new compound, Hypersoft, from Monaco Grand Prix