Despite economic headwinds and looming trade threats, Mercedes and Audi have no plans to pull out of Formula 1, says Dr. Marko.
Despite growing financial pressures on the European automotive sector, Dr. Helmut Marko, Red Bull Racing’s advisor, is confident that we will not see a mass exit of German manufacturers from Formula 1 like we did in the late 2000s.
There are concerns that US tariffs could hit struggling brands like Mercedes and Audi even harder, possibly triggering another wave of exits from the sport. However, Dr. Marko believes the current situation is very different. Today, Formula 1 teams operate under a strict budget cap, which has turned them into profitable businesses rather than loss-making projects.
“The economic climate is very tough right now, but thanks to the budget cap, a Formula 1 team has become a solid business case. It is actually profitable,” Marko explained.
“Most teams are making money and sponsorships now come from a much broader range of industries, not just the automotive sector.”
He also pointed out that Formula 1’s popularity is booming. More women are joining the fan base and with a record number of races on the calendar, there are now fewer free weekends than ever, creating new challenges for teams and organizers.
Looking ahead, Ford is set to make a comeback in 2026, partnering with Red Bull as a power unit supplier. Meanwhile, Cadillac is preparing for its own F1 debut in 2029.
Marko is optimistic about Cadillac’s potential in the sport but warns that managing logistics across different locations could be tricky.
“When one of the world’s biggest car manufacturers enters Formula 1 with such a historic brand, it is always a positive sign. When I was younger, Cadillac was the ultimate dream car. Now they want to reconnect with younger audiences. With General Motors, Cadillac’s parent company, having ties to Ferrari and plans to use Ferrari engines, they could find success quickly.”
“The real challenge will be managing operations across their engine factory in North Carolina and their team base in England.”
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