Red Bull ready to ‘achieve the impossible’ and go it alone with F1 engine

F1

Red Bull boss Christian Horner says the team is fully prepared for the massive undertaking of developing and running its F1 engine alone after a deal with Porsche collapsed

Sparks fly from Red Bull of Max Verstappen at the 2022 Australian Grand Prix

Red Bull's engine programme won't wait for another partner, says Christian Horner

Dan Istitene/F1 via Getty Images

Friday brought the not unexpected news that Porsche and Red Bull won’t be joining forces in Formula 1 in 2026 after all, following months of speculation about how the proposed deal would play out.

In a short statement the Stuttgart manufacturer explained simply that having “held talks on the possibility of Porsche’s entry into F1 the two companies have now jointly come to the conclusion that these talks will no longer be continued.

“The premise was always that a partnership would be based on an equal footing, which would include not only an engine partnership but also the team. This could not be achieved. With the finalised rule changes, the racing series nevertheless remains an attractive environment for Porsche, which will continue to be monitored.”

The statement came exactly two weeks after a very different announcement at Spa, where Audi confirmed its intention to enter the sport with a works team.

B-Mock-up-render-of-Audi-F1-car

Audi is expected to take over the Sauber operation for its 2026 entry

Audi

In any discussion about their F1 futures the two VW Group brands have been interlinked. Having competed against each other in recent years in WEC and Formula E, they wanted to do the same in F1, continuing a policy that mystifies many outsiders.

They chose completely different routes. Audi is planning to create its 2026 PU in Germany with the people responsible for previous projects, while the yet-to-be-confirmed takeover of Sauber will give it full control of its own works team.

Porsche in contrast opted not to use its own facilities, despite the knowledge of hybrid technology gleaned during the WEC days. The Red Bull deal was essentially to be a marketing exercise, which involved putting its brand on the new PU currently being developed by the new RB Powertrains facility in Milton Keynes by a team led mainly by former Mercedes HPP staff.

It wasn’t the arrangement wasn’t you might have expected, a ‘dream team’ joint venture with tech and support flowing over from Germany. In fact the new 2026 financial and sporting regulations, with limits on dyno time and spending, mean that working on two sites makes no sense. Indeed the provisional plan was that only around 20 Porsche people would be seconded to join a Milton Keynes staff that will eventually total around 450.

Helmut Marko and Christian Horner

Dynamic duo: Marko and Horner are able to make decisions quickly to keep up with the pace of F1

Mark Thompson/Getty Images

The bigger picture was the question of control. The proposed Porsche deal extended from badging the PU to a shareholding in Red Bull Racing, on a 50:50 basis, with decision making split the same way. And that was what really derailed the whole process.

Red Bull has always been quick on its feet – Horner and Helmut Marko deal direct with Dietrich Mateschitz, and between them they can make decisions on the fly, which is what you need to do in F1.

Consider how quickly Aston Martin was able to do a deal with Fernando Alonso after Sebastian Vettel confirmed his retirement. A contract was basically agreed overnight with owner Lawrence Stroll and his number two Martin Whitmarsh.

Contrast that with what unfolded at Alpine, where Otmar Szafnauer was trying to juggle driver negotiations that ultimately had to be approved by Luca de Meo and the wider Renault Group board. It was that convoluted chain of command and time lag that allowed both Alonso and Oscar Piastri to get away.

Otmar Szafnauer and Luca de Meo

Keeping it corporate: Alpine boss Szafnauer needs top-level approval from Renault board and Luca de Meo (right)

AFP via Getty Images

It was during the protracted negotiations with Porsche over the deal that Horner and Red Bull got a good idea of the Germany company’s complex corporate structure and decision-making process. What was it going to be like when the two parties were working together in the fast-moving world of F1, when you have to make quick calls? And how would the 50:50 split work if there was a disagreement on a driver choice, for example?

In the end the cons of the deal outweighed the pros, and there were not enough benefits in the deal for Red Bull. It was basically about money, which is always welcome at any team, but was not essential to an organisation which is well-funded by its owner and has an impressive roster of blue chip sponsors.

“Obviously with Red Bull becoming a powertrain manufacturer in 2026, it was always natural to hold discussions,” says Horner.

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“Those discussions have now been concluded, and the consensus was that it was not right for Red Bull’s involvement in F1.

“We committed to becoming a powertrain manufacturer a year and a half ago, or just over that. We’ve invested massively in facilities and people and the first Red Bull engine fired up approximately a month ago.

“So it’s a tremendously exciting new chapter for Red Bull, and it’s never been contingent or dependent upon an involvement from a third party or an OEM. That was absolutely never a prerequisite.”

Horner concedes that Porsche funding would have been useful, but not at the cost of the team’s independence.

“Only if it fitted with our DNA and our long-term strategy. There was never a financial discussion. Porsche is a great brand. But the DNA is quite different. During the discussion process it became clear that there was a strategic non-alignment.

“Red Bull is probably the biggest investor in F1”

“Red Bull has demonstrated what it’s capable of in F1. And obviously, as an independent team and now engine manufacturer we look forward to go to competing against the OEMs [manufacturers] with the powertrain as well as the chassis.”

Horner agrees that the inevitable revolving door of top management at any major car company, potentially impacting its commitment to motor sport, was a consideration. After all Red Bull was caught on the hop by Honda’s official withdrawal.

“I think it’s always a concern, isn’t it? I mean, stability is always important. And I think you’ve always got to look down the road as well. OEMs have had a tradition of coming and going, I think Red Bull has proved its commitment to the sport, not just through Red Bull Racing, but through its investment in Sauber before that, and its sponsorship before that.

“So Red Bull has been committed to the business and probably the biggest investor in F1, when you consider two grand prix teams, a grand prix, all the promotion that it provides globally. So it’s a fundamental part of its marketing strategy. Car manufacturers have tended to come and go. The strategy that we have, is very much with the long-term stability for the company in mind.”

So what’s the next step for Red Bull? Horner has made it clear that the company can go it alone and the PU can be badged as a Red Bull when it finally races in 2026.

However it has three years to do a deal with a third party, ideally a manufacturer that is willing to provide funding and a name but not interfere too much. Hyundai has been taking a close look at F1, and is one obvious possibility. The paying partner doesn’t even have to be a car maker – don’t forget that at one time RBR’s Renault engines were called TAG Heuers.

“We are fully focused on a Red Bull power unit,” said Horner. “And if there was a like-minded partner that could contribute something to the project, then of course you would have to absolutely consider that. But it’s not a prerequisite.

“We will be the only team other than Ferrari to have engine and chassis all on one campus under one roof. We believe that for the long-term competitiveness of the team, is absolutely the right thing to be doing. And of course, there’s other opportunities it presents as well.

“RB17 for example, we could potentially even produce our own power unit for that project so strategically, it’s for us having the whole campus under one roof makes a great deal of sense.”

Christian Horner inspects construction work on red Bull Powertrains factory

Hard-hatted Horner inspects construction work on Red Bull Powertrains facility last year

Red Bull

Horner is adamant that RBP can do the whole job itself. Indeed one of the negatives of the Porsche arrangement was that there was little technical benefit in terms of adding to RBP’s own capabilities.

“No worries about that. We’re in a position with recruitment and investment within the facility to do all aspects of the power unit.

“What we were interested in, when you’re building a power unit entity from scratch with an OEM is, what can they potentially bring to the party that we didn’t have access to?

“And I think, having done our due diligence, we felt that actually we were in good shape. And with the recruitment that we’ve made, technically, we don’t feel at any at any real disadvantage to our competitors.”

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The PU project is a huge undertaking. Hiring top people from Mercedes is obviously a short cut, but getting everything up and running is still a massive challenge.

“I think as soon as we made the decision, there was a full commitment, and it’s no small undertaking,” says Horner.

“Some people think we’re completely mad to take on the likes of Ferrari, and Mercedes and Renault and potentially even Honda, starting from scratch. But that is exactly the Red Bull way, to achieve the impossible. That was said about designing and building a chassis.

“So with the quality of people that we’ve managed to recruit, based in the UK, there hasn’t been an investment in the UK like this in an engine facility probably in the last 40 years. So that has enabled us to attract some phenomenal talent.

“We have the capability within a facility of producing engines for up to four teams”

“We’re still actively recruiting, announcing some more new members of the team in the near future. It’s tremendously exciting. And I think everybody within the whole business is excited about the opportunity it presents, providing jobs in the UK at a time when budget caps on the chassis side are contracting teams.”

RBP is clearly going to be a costly exercise, but as Horner points out the company is currently paying for a Honda supply, and extra on top for any development that is allowed within the rules. The PU financial regs mean that producing one from scratch is no longer a black hole of spending.

“Obviously we have the burden of cost of existing power units plus development at the moment, but by time we get to 2026, the budget cap will have fully kicked in. And the costs become far more bearable than they were two or three years ago.

“So the cost cap again was fundamental to becoming a new entrant. And the way we’re structured where we have the capability within a facility of producing engines for up to four teams. But that certainly won’t be the initial goal. The initial plan is obviously to supply the two Red Bull-owned teams.”

What then of Porsche? Can it now create its own bespoke PU? The statement hinted that it is still looking at F1, and Stefano Domenicali is adamant that the story is not over. What we don’t know is the current level of commitment at Porsche’s motor sport division, and how many of the people responsible for the WEC hybrid are still there. It’s also a question of time – RBP already had a PU running for example, Audi’s project is well underway, and 2026 is rapidly approaching.

The other big question is if Porsche does come up with a Plan B, what teams are still available? In essence it appears to come down to McLaren, who talked with Audi before the Sauber decision was made, and Williams, whose top management happen to be German and who between them have huge experience of the VW Group.

Then there’s a leftfield choice in the form of Michael Andretti, whose plea for a future entry would carry more weight with a manufacturer attached. It will be fascinating to see how it all plays out.