In the Paris–Madrid race of May 1903, the Mors of Fernand Gabriel [fr] took just under five and a quarter hours for the 550 km (340 mi) to Bordeaux, an average of 105 km/h (65.3 mph). Speeds had now far outstripped the safe limits of dusty highways thronged with spectators and open to other traffic, people and animals; there were numerous crashes, many injuries and eight deaths. The French government stopped the race and banned this style of event. From then on, racing in Europe (apart from Italy) would be on closed circuits, initially on long loops of public highway and then, in 1907, on the first purpose-built track, England's Brooklands. Racing was going its own separate way.
A Fatal Accident Inquiry into the incident concluded, on 6 September 2011, that McRae was at fault for the avoidable helicopter crash that led to his death and the death of his passengers. Sheriff Nikola Stewart stated, after the 16-day inquiry, that McRae had been engaged in "unnecessary and unsafe" low-level flying at the time of the crash.
Most of the works drivers of the 1950s were amateurs, paid little or nothing, reimbursed their expenses and given bonuses for winning (although there were certainly exceptions, such as the Grand Prix drivers who were brought in for some events). Then in 1960 came arguably the first rallying superstar (and one of the first to be paid to rally full-time), Sweden's Erik Carlsson, driving for Saab.
After several years of varying success, McRae switched to the M-Sport-run Ford factory team for 1999, driving the new Ford Focus rally car. The deal saw McRae earning six million pounds over two years, which at the time made him the highest earning rally driver in history. This move was immediately rewarded with two consecutive wins at the Safari Rally and Rally Portugal. A number of shunts and reliability issues for the new car for much of the rest of that season, however, resulted in only sixth place in the championship standings overall. Moreover, a rare personal pointless run had begun for McRae that year which was only to be halted with a podium on the following February's Swedish Rally, the beginning of a recovery which saw McRae victorious on the asphalt turns of Catalunya and the gravel of Greece, and post 4th in the 2000 overall standings. Midway through the 2000 season, the lacking reliability of the Focus had led to McRae threatening to leave the team if the problems continued. The upturn towards the end of the season resulted in him deciding to renew his contract with Ford for a further two years. McRae's intermittent success with Ford continued into 2001, where after failing to score in any of the first four rounds, including having momentarily led defending winner Tommi Mäkinen on the stages of the season opening Monte Carlo Rally prior to being forced into retirement, he then went on to score three consecutive victories in Argentina, Cyprus and Greece to tie with Mäkinen at the top of the points table. However, having again led the championship outright entering the final round in Great Britain, McRae once more missed out on a possible second title, crashing out and finishing second in the drivers championship, two points behind Subaru's Richard Burns.
But this wasn’t enough. By 1984 rallying was all but deregulated, and Audi Sport introduced the Sport Quattro: a shortened, more powerful version of the original coupe, and regulations insisted that 214 were built for the road. With its wheelbase shortened a meaningful 12.6 inches between the B- and C-pillars, the Sport Quattro was more nimble and the bodywork featured numerous GRP and carbon-Kevlar panels. A massive KKK-K27 turbocharger helped increase power to 302hp on the road, while Stig Blomqvist had access to over 450hp in the rally Group B version.
Longer term rallies are typically the outcome of events with a longer-term impact such as changes in government tax or fiscal policy, business regulation or interest rates. Economic data announcements that signal positive changes in business and economic cycles also have a longer lasting impact that may cause shifts in investment capital from one sector to another. For example, a significant lowering of interest rates may cause investors to shift from fixed income instruments to equities. This would create a rally in the equities markets.
Rising investor confidence also indicates a rally, and it is perhaps more powerful than any economic indicator because when investors believe something is going to happen (a rally, for example), they tend to take action (purchasing shares in order to profit from expected price increases) that actually turn expectations into reality. Although it is an objective concept, investor sentiment shows through in mathematical measurements such as the put/call ratio, the advance/decline line, IPO activity, and the amount of outstanding margin debt.
The causes and characteristics of rallies vary, but most financial theorists agree that economic cycles and investor sentiment both play a role in the creation and momentum of rallies. In general, information about a strong or strengthening economy, indicated by high employment, high disposable income, low inflation and high business profits usually ushers in a rally. The existence of several new trading highs for well-known companies also indicates a rally is occurring. It is important to note that government involvement affects rallies: Changing the federal funds rate or tax rates indirectly encourages economic expansion or contraction.