South Korean automotive giants Hyundai are reportedly interested in making a bid to enter Formula 1. With the fate of Andretti’s year-long application in waiting still looking shaky, Hyundai seemingly already has a better proposal to convince the Formula One Management (FOM).
According to Motorsport Week, Hyundai, who are currently valued at around $45 Billion, are keen to gain an entry into the sport by purchasing an already existing Constructor on the grid. The only loophole in the plan is that no team is willing to sell – at least on paper as per veteran F1 insider Joe Saward.
In theory, this is a big hurdle for Hyundai to cross, given that they don’t want an entry as the 11th team on the grid. The FOM also has made it clear to the FIA that they do not want more than 10 teams on the grid.
Similarly to Hyundai, Andretti were also offered such a proposition when FIA president Mohammed Ben Sulayem, suggested they buy an existing team on the grid. But the American team are adamant about entering the sport on their own terms as an additional entry.
Meanwhile, there is another reason that makes Hyundai a more lucrative option for the FOM as compared to Andretti.
Formula 1 finds more value in Hyundai than Andretti
Andretti’s proposed bid to enter the sport was rejected on two broad grounds. Firstly, the FOM did not believe that the team could add enough value to justify the dilution of the prize pool. Secondly, they felt that a non-works Andretti outfit would not be a competitive solution on the grid.
As it turns out, Hyundai’s speculated bid satisfies both these contentions. Since Hyundai are the world’s fourth-largest automaker, they are capable of developing and manufacturing their own power units as well as chassis.
Hyundai is rumored to be eyeing an entry into F1 by buying a team.
Their ambitions match FOM’s love for established automakers and need for Asian influence as F1 eyes Asian growth, and Incheon has expressed interested in hosting a GP by 2026. pic.twitter.com/Vaib0j3PBK
— Vincenzo Landino (@vincenzolandino) June 4, 2024
Since the sport has already started maximizing their potential in the US market, the idea of Andretti, an American brand, seems like just marginal gains. On the other hand, since Hyundai’s headquarters are in South Korea, it is a market that F1 is very keen to venture into shortly. Thus, Hyundai seems like a more commercially viable option for them.
In any case, Andretti has made its intentions very clear. They will stop at absolutely nothing before they are granted an entry onto the grid. To that end, they have expressed their willingness to develop their own power units in partnership with General Motors, as soon as the 2028 season.
