Volkswagen May Lose Its Wings

The Volkswagen diesel scandal will most probably have a long-term effect and could well have an impact throughout the industry for many years, something we are only just starting to realise. And Formula One may be included in this.

If you’re thinking that VW doesn’t compete in FI, then you are correct. Even amongst all of of its different brands, the group have somewhat of a history when it comes to post-war grand prix racing.

Last week we reported that the German auto giant and the Red Bull Racing team were coming close to an agreement that would have seen VW take over the Red Bull Racing team. Apparently the deal would include VW creating a new power unit (as the combined turbo engine and electric motor is called within the sport) and achieving the best championship-winning team, with the Red Bull Racing team taking on a bit more of a traditional sponsorship role. We will have to wait to find out which of its numerous brands VW selects to advertise with the new program.

However, team principal Christian Horner has stated that the deal has “seemed to go up in smoke.” This doesn’t necessarily mean that it won’t be happening, however it could suggest that due to the current scandal, drop in stock value and the leadership change, the board in Wolfsburg have other issues to focus their attention on.

Although it could seem like a logical move for Volkswagen, it may put Red Bull in a tricky situation. The Renault partnership which, once upon a time, resulted in complete domination with four back-to-back world championships has fallen off-track ever since. Despite coming second in the championship by winning three races last season, this season it is yet to win anything. Going into this weekend’s Japanese Grand Prix, it was at its worst position since 2008, placed fourth in the standings.

“With the way the regulations are, unless you have a Mercedes or Ferrari power unit it is quite simply impossible to compete,” stated Horner. “And if we are not able to compete, then you have to question what is the validity of remaining in F1.” If the Volkswagen deal does collapse then the team will most likely have to purchase its power units from a different supplier, with its only probable candidates being its main rivals.

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