Porsche to acquire 50% of Red Bull F1 team
What's the story
Porsche is all set to enter the world of Formula 1 racing in 2026. The German automaker will acquire a 50% stake in Red Bull's F1 team for 10 years and an official announcement will be done on August 4. Porsche has already filed documents outlining its plans with anti-trust bodies of the European Union and some other countries across the world, including Morocco.
Context
Why does this story matter?
If the partnership is officially announced, it will mark the return of Porsche to the sport after almost 30 years since its exit in the 1990s. Formula 1 is laying increased emphasis on sustainability, and Porsche's expertise in electrified powertrains will certainly help Red Bull. The German automaker's inclusion in the game will also make it more popular.
Business
A detailed look at the deal
On July 8, Porsche had expressed intent in acquiring half of Red Bull Technology Ltd., the subsidiary of Red Bull GmbH. It manages the energy drink company's F1 operations. The joint venture between Porsche and Red Bull will develop and manufacture powertrains for racing. Red Bull's second team, Scuderia AlphaTauri might also use these powertrains. However, this team will remain entirely with Red Bull.
Reasons
Why is the partnership not announced yet?
The Porsche-Red Bull partnership is yet to be officially announced because the 2026 F1 engine regulations have not been finalized by the Federation Internationale de l'Automobile (FIA). In 2018 too, Volkswagen Group tried to join the motorsport. However, its plans went to waste as FIA took too long to confirm the 2021 engine regulations. The firm now wants to try its luck for 2026.
Policy
Audi is also eyeing the F1 business
Porsche's sister brand Audi also wants to join the F1 business. It was in talks with McLaren for the same. However, the deal never came to fruition. Now, the Volkswagen Group-owned automotive company wants to acquire a majority stake of 75% in Switzerland-based Sauber Group via a series of incremental investments. The latter operates the Alfa Romeo F1 team.