How Oracle Red Bull Racing Walked Away From Porsche And Ford Stepped In

As questions surrounded equity control of Oracle Red Bull’s Formula 1 team, and changes to sustainability for the racing series are set to take a larger role, Porsche fell by the wayside, and Ford decided to make their return to the sport after a 22-year absence.

It’s not often that one can say, “When a door closes, another door closes which leads to a door opening,” but that may best describe what has happened with consecutive F1 driver championships in 2021-22 and 2022 constructor champion Oracle Red Bull Racing.

A seismic shift has occurred with those supplying powertrains in F1 as an increase in renewable technology continues to dramatically alter the consumer automotive market. In 2021, Honda left primary support for Red Bull as they moved away from combustion engines. Honda has pledged to be carbon-neutral by 2050.

With not just Honda but others seeking to increase battery technology, and other renewable aspects, Formula 1 found itself struggling with hybrid rules that kept manufacturers on the sidelines. Expenses with the F1’s MGU-H engine design, which repurposed exhaust was effective but not mirroring development in the consumer automotive space.

That pushed the FIA to develop and adopt the MGU-K engine design for 2026. This design sees a 1,000-horsepower hybrid design that captures around 3 times the energy used in braking or approx. 350kW via electric motor, on top of renewable fuels. That effort opened interest for other manufacturers to enter the fray.

Eight months ago, Porsche was set to partner with Oracle Red Bull Racing for 2026. But what seemed on the outside as a perfect marriage quickly dissolved over Red Bull’s ability to retain independence; something few other teams on the grid have.

“Red Bull has always been an independent team,” said team principal Christian Horner said at the time. “It’s been one of our strengths; it’s been the backbone of what we’ve achieved and our ability to move quickly. It’s part of the DNA of who we are. “We’re not a corporately operated organization, and that is one of our strengths in how we operate as a race team. That is an absolute prerequisite for the future.”

So, while the change in engine design opened the door for Porsche, ultimately the deal collapsed over matters of control. Porsche was seeking to purchase 50% of Red Bull Advanced Technologies (the arm of the operation that houses the race team) and back the Powertrains division in a 10-year deal.

So, if the door closed on Honda, followed by the door closing with Porsche, it opened the door for Ford to partner.

There’s little doubt that the U.S. finally emerging as a huge market for F1 to tap is an additional aspect of Ford looking to get back into the series after a 22-year absence and somewhat go back to the future after selling its Jaguar team to Red Bull in 2004. With the Circuit Of the Americas (COTA) outside of Austin, the inaugural Miami Grand Prix in 2022, and the introduction of the Las Vegas night race in 2023 that will return for at least a decade, suddenly Formula 1 is a hot property in the States.

So, it made sense for the partnership between Ford and Oracle Red Bull to take place in New York City as part of the 2023 car unveiling as opposed to Milton Keynes in the U.K., home to Oracle Red Bull Racing.

“Ford is returning to the pinnacle of the sport, bringing Ford’s long tradition of innovation, sustainability, and electrification to one of the world’s most visible stages,” Ford executive chair Bill Ford said.

The partnership sees Ford provide powertrain units for Oracle Red Bull Racing and Scuderia AlphaTauri teams from 2026 to at least 2030. Ford has started work now with Red Bull Powertrains to develop for 2026.

So, Red Bull Racing gets a legacy brand in Ford to partner with. That will bring its own cache given its huge presence and history in the U.S. That will undoubtedly open other partnership opportunities and continue to grow sponsorship activation in America and around the world.

Until then, all eyes shift to the upcoming 2023 Formula 1 season, which is just around the corner. Ford and Oracle Red Bull will be heads down looking to see what their partnership will bring in 2026.