What Audi and Porsche stand to gain from joining Formula One

They could also win hundred of millions of dollars in prize money. Roughy 47.5 percent of F1 profit makes up the prize money, which is then divided into two categories: Half goes to the F1 and its shareholders; half goes to the teams, which divvy it up based on final standings for the year.

“The sport in North America [is] under-viewed, under-monetized, under-everything,” said Greg Maffei, the president and CEO of Liberty Media, which owns F1. “I don’t think that gets solved in a week, but I think that’s an interesting long-term opportunity.”

Risky bet on a marketing goldmine

There are some risks to joining F1, especially for Porsche, which built its brand image on the plucky race cars and rallies of the 1960s, 1970s and 1980s. For the power brokers at VW, the old adage “win on Sunday, sell on Monday” still holds true. (Cars that win races instill consumers with a favorable view of their brands and make people want to drive the street-legal cousins of the winning cars.)

“We are assuming that in 2026 or 2028, Formula 1 will be the biggest motorsport spectacle in the world—even more than today—bigger in China, bigger in the United States,” Diess said. “And with that, also the largest marketing platform for premium vehicles.”

But “win” is the operational word.

For Porsche, which got mixed results in Formula E and races only occasionally, in lesser-known series such as Le Mans, entering F1 but faring poorly would potentially hurt the image of VW group’s most profitable brand. Porsche has built its allure on the back of a highly successful (non-F1) racing car, the 911. As Porsche’s most profitable vehicle, the 911 contributes 11 percent of Porsche sales by volume while accounting for roughy 30 percent of earnings.

Aston Martin, for instance, has suffered this season as its drivers continue to finish at the back of the pack. While the company also faces other headwinds, such as a disappointing initial public offering and subsequent churning of top management, the fact that the British brand is currently ranked ninth of 10 teams does not help morale among loyal fans, or win new ones for the brand.

On May 4, Aston Martin Lagonda named former Ferrari boss Amedeo Felisa as top executive. Felisa immediately replaced Tobias Moers, who joined the company in 2020 from Mercedes-Benz’s high-performance AMG brand. Rumors have circulated for months that Aston Martin Chairman Lawrence Stroll is looking to sell the automaker’s racing team.

A proven record

Ferrari provides the gold standard case study for the power of F1. It is the world’s strongest brand in all categories for nearly a decade, according to the Annual Brand Ranking report that balances scorecard of metrics evaluating marketing investment, stakeholder equity, and business performance.

Ferrari builds just over 11,000 cars per year but trades on a gargantuan footprint of loyalty, heritage, and a winning tradition bolstered largely by its longstanding involvement in F1. Cumulatively, the Italian supercar maker and racing team are worth more than $27 billion.

“The embodiment of luxury, Ferrari continues to be admired and desired around the world,” wrote David Haigh, the CEO of Brand Finance. “It is no wonder that many consumers, who might never own a Ferrari car, want a bag or a watch emblazoned with the Prancing Horse.”

The success of Ferrari’s racing cars on the track in the 1950s and ‘60s built the fame and reputation that fueled the appetite for the brand’s first popular road-going cars; its million-dollar icons such as the F40 drew close parallels to the race cars of the 1980s. Its fans, known as Tifosi, are the most notorious force behind any F1 team on the planet. In 2017, one in three F1 fans described themselves as Ferrari supporters, according to a F1 fan survey in 2021.

The caveat is that on the world’s best-known race track, you must win to stay popular—and feel you are getting your money’s worth from the more than $145 million budget required to field a team.

In the years since 2017, Ferrari fell off its competitive race pace and has lacked the star power of a driver such as Mercedes’s Lewis Hamilton. It’s no coincidence that last year, just 18 percent—fewer than one in five—of racing fans still described themselves as supporters of the brand. (Sales of Ferrari street cars nonetheless rose.) Close observers might observe a bump in popularity after this year: Ferrari is currently running in first place in the constructors team standings.

Selling electric in 2026

There is also the question of how entering an old, fossil-fueled race series could help sell electric vehicles, which Audi and Porsche have committed to selling extensively. The brands have timed any move carefully. A rule change stipulates that in 2026 all F1 race cars will have new engines that are more electrified and run on synthetic fuel.

The adjustment levels the playing field for any brands that might want to enter the series. All will be building engines to comply with the rule change.

“You can’t enter Formula 1 unless a technology window opens up, which means, in order to get in there, a rule change so that everyone starts again from the same place,” Diess said.

It was unclear whether ownership of Rimac, a Croatian battery provider and automaker, might play a role in Porsche moves to develop technology for itself or others in the series. A spokesperson for Porsche declined to say whether making an F1 move means Porsche would withdraw from Formula E.

Diess, for his part, was more direct: “It’s really only Formula 1 that counts,” Diess said. “If you do motorsport, you should do Formula 1, as that’s where the impact is greatest.