From Tracks to Factories: The Astounding Investments Reshaping F1’s Landscape

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Formula One Forever

5 min readJul 17, 2023

Aston Martin Aramco Cognizant F1 Team. Credit — Pxfuel

In the realm of Formula One, the introduction of the cost cap has undeniably narrowed the gap between the sport’s largest and smallest teams. However, even in the pursuit of equality, some teams manage to surpass their peers.

While all competitors must now adhere to a season spending limit of roughly $135 million, many of them have spared no expense in fortifying their infrastructure to gain a competitive edge.

The Aston Martin team, for instance, stands as a testament to this philosophy. Their tireless investment endeavors have culminated in the construction of a cutting-edge factory at Silverstone, boasting an impressive price tag of £200 million.

With a sprawling expanse of 37,000 square meters, this new facility is poised to become the envy of the F1 world. Aston Martin’s ambitious plans also encompass the imminent opening of a state-of-the-art wind tunnel, as well as a dedicated space for employee experience and events.

Team principal Mike Krack has hailed this investment as a true “game-changer.”

However, Aston Martin is not the sole contender committing hundreds of millions of dollars to capital expenditure, despite the cost cap limitations on staff and car development expenditures.

McLaren, for instance, is preparing to unveil its own wind tunnel and simulators in the coming weeks. Alpine has likewise pledged to introduce a new simulator within the next two years.

Not to be outdone, Mercedes has given the green light to a £70 million redevelopment of its Brackley campus in Northamptonshire.

Meanwhile, Red Bull Racing has devoted substantial financial resources to establishing a new Powertrains division, dedicated to designing and manufacturing their own engines starting from 2026.

Christian Horner, Red Bull’s team principal, aptly captures the essence of this investment drive in the era of the cost cap: “If you stand still in this business, or any business, you are just not progressing.”

As the cost cap continues to exert its influence, and the F1 field becomes more tightly contested, teams can ill afford any deficiencies if they aspire to achieve success.

McLaren recognized this fact long ago, understanding that lacking their own wind tunnel left them unable to keep pace with the advancements achieved by the likes of Mercedes, Red Bull Racing, and Ferrari.

Andrea Stella, McLaren’s team principal, explains the predicament: “When we have a design, we produce the parts for the model, then there’s a van that drives to Cologne and we lose a couple of days. Formula One is such a fast business; you can’t have this way of operating.”

Nevertheless, not all investments in the sport revolve exclusively around car components. Mercedes’ revitalization of the Brackley campus demonstrates a commitment to the well-being of its personnel.

This undertaking encompasses pedestrianizing the campus, incorporating restaurants, gyms, and marketing buildings.

Toto Wolff, Mercedes’ team principal, envisions a place where employees thrive, attracting and retaining top talent. The benefits in terms of lap times will manifest in the long run. “It will become its own little village, with all the amenities and benefits that you would expect from a Silicon Valley-style environment,” he affirms.

Perhaps no team, however, epitomizes ambitious investment like Red Bull. Embarking on an audacious journey, they have decided to venture into engine manufacturing.

The significant investment in establishing Red Bull Powertrains was not taken lightly, as the current distribution of F1’s commercial rights income means that winning championships with their own engines will not yield greater financial rewards than using other engines.

Nevertheless, the team believed that the advantages of liberating themselves from their reliance on engine partners far outweighed the drawbacks.

Christian Horner explains the rationale behind this bold move: “It’s hugely ambitious, and I think it is about taking control of our own destiny for the longer term.” In fact, the team has already secured a deal with Ford to co-badge the engines and provide technical support.

Although all these investments in Formula One aim to enhance speed, they also reflect a broader trend in the sport — an increasing emphasis on teamwork, organization, and efficiency as spending freedom becomes restricted.

As Toto Wolff succinctly puts it: “Technology is something you can acquire, but it is the best organization that wins. We want to have a superstar team; not a team of superstars.”

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