This week's Grapevine brings you information fresh from the paddock on: Williams bid for another win Hockenheim plays the Bernie game Prost struggling to make ends meet

Williams bid for another win

There is little surprise in Williams being tipped to do well at Hockenheim, which is, after all, a power circuit more than anything else is. Given the BMW unit is a clear leader in that field, and Ralf Schumacher, at least, is flying, the team have a lot to look forward to. And that should be the end of the story.

Except that there is more here. Michael Schumacher is threatening Prost's record 51 wins, and has had Ferrari target this event in the hopes of doing so in front of his home crowd. The latest 050 engine, which the team use in qualifying, is expected to be given its first full race outing this weekend, offering the team a significant hike in fuel efficiency, alongside a modest power gain. It will not match the BMW engine on either front, but in the hands of a fully motivated Schumacher, Ferrari believe they still have what it takes to land this race.

Around the corner at Mercedes, there has been plenty of flak flying this year. Their engine has been the class of the field for over three years, so coming into 2001 behind both Ferrari and Williams speaks of inadequate off season development. In fairness, the engine has not had quite the same platform to be shown from: this year's car is very quick indeed, but only when it is properly dialled in. Hitting the sweet spot is proving awkward. However, for Mercedes's home event, the stops are being pulled out again. The car has new low-downforce parts coming, and the latest Mercedes engine goes a long way to recovering ground lost to Ferrari.

Williams are, again, keeping their predictions to themselves. The possibility of a wet race holds quite some fear for the team, given Michelin's deficit in the wet weather tyre department. For all that, Patrick Head is clearly aiming for another win.

Hockenheim plays the Bernie game

As Bernie Ecclestone promises the Russians a Grand Prix in the 2003 timeframe, the scramble amongst European circuits to secure their futures is starting to become frantic.

Two years ago, looking to be certain of renewal, the owners of Hockenheim asked Ecclestone what would be required for a new contract. Besides a very healthy figure for the privilege of hosting the event, Ecclestone required improvements all round. Facilities need to be upgraded. All of them, pretty much. And to pay for it, the place needs to be more fan friendly – those long runs through the forest are all very well, but not suited to grandstands full of spectators. So that's going to change.

Ecclestone is a man of his word, so obedience brings its rewards. And on Sunday, Hockenheim will receive a contract to keep the German Grand Prix until 2008.

All of a sudden, things are looking awkward for all the circuits on short term – or politically disposable – contracts. Imola's single year renewal is a clear warning to all that things have to be done "the right way," or their will be no second chances.

The package of changes announced for Silverstone are expected to move the circuit to the forefront of the modern game. If the British government stumps up half the readies, that is. Octagon holds the rights to the British Grand Prix, but without a world class circuit to host the event, the paper they hold is worthless.

It's not all cut and dried, however. Demand for events outside of Europe is strong, but there are problems for the F1 fraternity too. They generally prefer European races, because they can take their transporters direct to the track, race, then pack up and go home. Flyaway races have a huge impact in terms of organisation and expense. Then again, places like Russia are not known for their stability: the local economy has the potential to follow the route of South Africa, and price them out of the market. This is not a problem in the Middle East, which is a potentially huge area, but the sponsors are more interested in ensuring strong presence in the States. Europe, of course, continues to be a key market, which currently justifies the strong event bias there.

That said, Bernie has a vision for Formula One, which sees worldwide expansion as an inevitable consequence of success. And piece by piece, he will continue to build it.

Prost struggling to make ends meet

Now well past the mid-point of the season, most of the teams have a good idea what their plans for 2002 are. Most have their concept sorted out, all are looking at the best ways to attain those ends, and the front runners have all established requirements with their engine department or supplier.

There's none of that going on at Prost, of course. In fact, financial tensions are so high, that Jean Alesi is having to struggle with the concept of potentially working for his costs alone next year – which, whilst testament to his desire to race, seems to make him a very crotchety man to work with.

If the team can maintain the Ferrari engine contract, then they will again have a substantial base to build the car around. However, that alone is not enough to perform well. It's not much of a secret that this year's Prost also benefited from the rear suspension which helped Ferrari win the 2000 championship. However, low funding has placed big restrictions on development and testing. The basic car is sound, but not quick enough, and without better funding, the two or three "major breakthroughs" the team sees through the year are barely sufficient to keep pace with the competition.

Alain Prost is attempting to talk Ferrari into cutting the price for the second year. If he can cut the bill from the $24 million currently asked to $15 million, it would free up sufficient budget for the team to actually make something of the season. As it stands, handing over what amounts to sixty percent of the team's entire annual budget for the engines just doesn't make sense.

Alternatives are a bit thin on the ground, though. Asiatech are an option, but only as a last resort. Ford have appeared to be interested, but only on the surface: serious attempts to negotiate have demonstrated the deal would be awkward, if better than Minardi's current setup. BMW made a token gesture – but the price was half again what Ferrari asked. Strangely, Renault's interest has been for the benefit of French media only: which could be an indicator in itself, though few see it happening.

Prost has been offered some serious money to give up on his team. The Diniz family are interested in principle, considering their already significant investment, and the paddock believes Flavio Briatore could buy in – bringing Renault engines as part of the deal.

And under the circumstances, few would blame Prost for passing up the chance to run his team at the back of the grid for another year.