Ford roars back into the world of Formula One with a partnership with Red Bull

Written on February 9th, 2023

Ford recently proclaimed its re-entrance into the world of Formula One by joining forces with Red Bull’s infantile powertrains unit. This arrangement will usher in the return of the illustrious Blue Oval to the F1 track from 2026 and onwards, even though its participation in F1 will fall just short of powerhouses such as Mercedes, Ferrari, Renault (operating under the Alpine brand), and the fresh entrants for 2026, Audi.

Ever since establishing its powertrains division in the year of 2021, Red Bull has been openly vocal about its intention to partner with a large original equipment manufacturer. The uncertainty surrounding the F1 future of the current engine supplier, Honda, urged the team to take control of the situation and commit to building their own engines for the upcoming set of F1 power unit regulations scheduled for 2026.

A recent development marked a substantial progression for a team that had previously relied on external engine partners, including Honda and Renault, for one of the most costly and performance-sensitive components of their vehicle. Red Bull recognized the need to ensure its power unit future for 2026 and considered the possibility of pursuing the project independently, but the enormity of the undertaking and its accompanying expenses were not lost on them.

As Red Bull searched for a potential power unit partner, discussions with Porsche neared a successful conclusion. However, the German car manufacturer expressed interest in gaining shares and control of the team, a deal that Red Bull was unwilling to make. In contrast, their recent agreement with Ford involves no transfer of team ownership, yet provides substantial commercial and technical support. Thus, the deal with Ford is considered mutually beneficial for Red Bull.

“It’s a very different relationship to what was discussed with Porsche,” Red Bull team principal Christian Horner said. “This is purely a commercial and technical deal, so there’s no exchange of any shares or participation within the business. It’s a very straightforward agreement where we will have the ability to share and access to R&D, particularly on the EV side, and sell technology software development and so on. Then on the commercial side, with Ford being so prevalent in the US. As a commercial partner, it helps us achieve even more penetration in that market.”

In Ford’s view, the arrangement presents a chance to return to the world of motorsports during a time of unprecedented growth, without the need to invest heavily in a facility dedicated solely to Formula One. It also confers upon the company a prominent position in the sport and, due to Red Bull’s recent success in F1, a clear path to potential championship triumphs. Furthermore, the agreement with Red Bull extends through 2030, affording Ford ample time to evaluate the advantages of its involvement in F1 while still providing an uncomplicated exit strategy should the company’s priorities shift.

Meanwhile, Ford is granted entry to the ultimate research and development arena in the automotive industry, where it can leverage its expertise in hybrid technology to aid in the development of Red Bull’s F1 engine. In accordance with the 2026 regulations, the electric component of the power unit will generate 50% of the total power output of an F1 car, making it an even more crucial battleground for manufacturers.

As a business that is invested in the future sales of combustion engines, particularly in its home country of America, Ford can draw inspiration from F1’s adoption of eco-friendly synthetic fuels in 2026. Although the notion of efficient hybrid engines powered by synthetic fuels is not as trendy as electric vehicles in the automotive industry currently, truly sustainable fuels could still have a significant impact on transportation in the coming years.

In order to contribute to the power unit that is already in development for 2026 in Milton Keynes, Ford plans to have full-time employees stationed at Red Bull’s engine factory starting this year. During the announcement of the new collaboration in New York, Ford emphasized that this is much more than just a marketing strategy.

Of course, Ford will also benefit from the promotional advantages and global exposure that come with F1, which is a major incentive for all car manufacturers to be involved in the sport. F1’s popularity is on the rise, especially in the United States, and it’s no coincidence that Ford’s return coincides with interest from its longtime automotive rival Cadillac, which is considering entering F1 with a brand-new team led by Andretti Autosport.

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