McLaren and Audi to team up instead?

Wednesday, 17 November 2021

McLaren has denied it has sold its Formula 1 team to Audi, but the two still seem likely to pair up in the future.

After rumours surfaced in the weekend that BMW was keen to buy McLaren Cars (the road-going supercar builder part of the company), while Audi had purchased the company’s Formula 1 operations, McLaren issued a swift, and very short, denial of it all.

“McLaren Group is aware of a news media report stating it has been sold to Audi. This is wholly inaccurate and McLaren is seeking to have the story removed,” the company said in a statement on its media website.

Rumours suggested that Audi and BMW were both interesting in buying McLaren. Those rumour have since been dispelled, but others persist.

“McLaren’s technology strategy has always involved ongoing discussions and collaboration with relevant partners and suppliers, including other carmakers, however, there has been no change in the ownership structure of the McLaren Group.”

But what the statement almost hinted at was the fact that Audi and McLaren are likely in talks to team up for a Formula 1 effort in the near future.

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While the McLaren Group issued a flat denial about a sale with the collaboration tease, Audi simply addressed the rumour by saying it was also open to technology collaboration 'with relevant partners and suppliers”, which is what actually seems to be happening, with a new report from Reuters saying that Audi's supervisory board is meeting this week to discuss ways for the company to enter Formula 1, including a potential partnership with McLaren.

According to the Financial Times, Audi’s parent company, the Volkswagen Group, is said to be considering having two branded F1 teams run by Audi and Porsche, with Audi CEO Markus Duesmann and Oliver Blume, head of Porsche, both being 'ardent fans of Formula One”. Volkswagen is known to have been interested in the idea of getting into F1 for some time now.

German industry publication Automobilwoche first reported in the weekend that both Audi and BMW were interested in acquiring McLaren, suggesting that BMW was only interested in McLaren’s road car division, while Audi was originally said to be mainly interested in the company’s Formula 1 operations, with reports later suggesting that it was close to acquiring the entire McLaren Group.

The reports come after a turbulent period for Woking-based McLaren, which saw its CEO Mike Flewitt step down last month after eight years in charge, while it has also struggled with the impact of the Covid-19 pandemic, having to refinance last year to the tune of £500 million (NZ$953 million) following a £150 million (NZ$286 million) capital injection from existing shareholders, including Bahrain's Mumtalakat sovereign wealth fund and “a limited number of new private investors”.

The company also sold its Woking headquarters for £170 million (NZ$324 million) to investment firm GNL, signing a deal to lease the property for the next 20 years.

Whether the talks result in Audi purchasing some (or all) of McLaren, a partnership, or even just an engine deal, it will be a welcome respite for McLaren. While the F1 team has had something of a performance resurgence in F1 recently – with its decision to use Mercedes-Benz engines for 2021 paying off well so far this season – an exclusive engine deal with a major manufacturer (at the very least) will be a huge boost.