On Friday it was announced that a Lawrence Stroll-led consortium has taken a minority share in Aston Martin, which has ramifications for two Formula 1 teams, as Motorsport Week explains.
What has happened?
Aston Martin has been struggling financially and issued a profits warning earlier this month, sending its shares plunging, after worse-than-expected car sales. On Friday it was confirmed that a consortium of investors, led by Lawrence Stroll, have taken a 16.7 per cent stake in Aston Martin Lagonda Holdings for £182m. This news was made public on the London Stock Exchange. The consortium will be led by Stroll but the other investors are expected to be Andre Desmarais, Michael de Picciotti, Stroll’s long-term business partner Silas Chou, John Idol, Lord Anthony Bamford and John McCaw. They were part of the consortium that acquired Force India in August 2018. Stroll will join the Board and become Executive Chairman.
How does F1 come into this?
Stroll is a long-term motorsport enthusiast and through the Tommy Hilfiger brand had an early affiliation, which has grown in recent years, with the acquisition of a large collection of cars, as well as the Mont Tremblant Circuit in his native Canada. Stroll and his investors acquired Force India mid-2018 and rebranded it as Racing Point for 2019, which was always expected to be a placeholder name. In the statement on Friday Aston Martin Lagonda confirmed that “mid-engined cars are a core part” of its future and that “an enhanced approach to F1 is considered important.”
What does it mean for Racing Point?
Stroll has invested heavily in a team that was financially on its knees mid-2018, completing an agreement to use Mercedes’ windtunnel in Brackley, while giving the green light to a major factory expansion, with opening set for 2021. As part of the deal on Friday Aston Martin Lagonda has entered into a “legally-binding term sheet under which Racing Point will become the Aston Martin F1 works team with effect from the 2021 season.” It is an agreement that will last at least 10 years, and it also includes a four-year sponsorship agreement, renewable for five years subject to satisfying certain conditions. It does not necessarily mean that the Racing Point name will disappear altogether. The exact team name has yet to be publicly communicated, but Aston Martin will feature prominently, most likely exclusively.
How will it affect the team?
For 2020 nothing will appear to have changed. The team will compete as Racing Point with Sergio Perez and Lance Stroll as drivers, as per 2019. Perez has already committed his future to the team through 2022 while Stroll, son of Lawrence, is unlikely to vacate that seat any time soon. In reality this is initially little more than a cosmetic tweak, for the chassis will continue to be produced at Silverstone, with engines supplied by long-term partner Mercedes. In that way it can be considered similar to the current set-up at Alfa Romeo. But on a wider scale, and particularly commercially, this makes the team considerably more attractive than the ‘Racing Point’ or even ‘Force India’ name, with Aston Martin a world-renowned luxury brand. It also means another manufacturer is involved in Formula 1 on a works basis, which is a boost for the sport itself. This is a long-term arrangement, securing the Aston Martin name in the sport through at least 2030, giving the team an identity and, ostensibly, stability for the next decade.
What about Red Bull?
Red Bull Racing formed a partnership with Aston Martin in 2016 and for 2018 that developed into title sponsorship. Red Bull confirmed on Friday that it has agreed to release Aston Martin from its Formula 1 exclusivity clause. The team’s title partnership will continue as scheduled for 2020, meaning it will still be officially entered as Aston Martin Red Bull Racing. This partnership will not continue for 2021.
What about the Valkyrie?
Since the agreement came into place in 2016 Red Bull Advanced Technologies and Aston Martin have been designing the Aston Martin Valkyrie hypercar. Its first demonstration run came at last year’s British Grand Prix. On Friday the parties confirmed that they will continue to work on the Valkyrie project. The first batch of the 150 road-going cars are due to be delivered at the end of the year.
Has Aston Martin been in F1 before?
Aston Martin is more synonymous with sportscar racing but, prior to its Red Bull tie-up, it has had involvement in Formula 1. But it was short-lived and exceptionally unsuccessful. The out-dated DBR4 failed to take a single point in the four rounds it entered in the 1959 season. Roy Salvadori claimed a pair of off-the-pace sixth places while a similarly dismal couple of appearances in 1960, with the equally uncompetitive DBR5, prompted the company to quickly exit Formula 1.
