Aston Martin re-entered F1 in 2021 as Lawrence Stroll had bought a sizeable stake in the British automaker. While the Canadian has been focusing on making Aston Martin’s F1 team (formerly Force India) a championship contender, he has also pumped money into the parent car company.
However, the recent import tariffs introduced by U.S. President Donald Trump have turned out to be a curveball that is forcing Aston Martin to modify its equity structure. Firstly, these tariffs have caused an amplifying effect on the already ballooning losses for the British manufacturer amid a post-pandemic economy that is struggling with higher costs in the supply chain.
So, Aston Martin’s bottom line will be affected if they do not plan to generate additional cash by some or the other route. Per Reuters, Aston is looking to sell a stake in its F1 team worth $95 million to boost liquidity, which is part of a strategic plan, as Stroll is also investing money and increasing his stake in the parent company.
The overall objective of this sale of stake amid other incoming investments is to generate cash reserves for Aston Martin to offset the effect of Trump’s new tariffs. However, it does seem a bit confusing as to why the F1 team operation has to bear the brunt of the parent company’s ongoing troubles.
As Stroll is the shareholder in the overall Aston Martin group as well, the financials of the parent company have an integral link with the F1 team, even though the F1 operation based in Silverstone runs independently as a separate entity.
Luxury carmaker Aston Martin Lagonda said Monday it planned to sell its minority stake in the Aston Martin Aramco Formula One team to help turn around its loss-making core business. #AFPSports https://t.co/h8I62C1ixD pic.twitter.com/MszhYm8xU3
— AFP News Agency (@AFP) March 31, 2025
Moreover, Aston Martin is a relatively smaller company, valuation-wise, in comparison to other automobile giants like Ferrari, General Motors (GM), Ford, and Volkswagen. So, they need to maximize their financial options in a liquidity crunch like this.
Nevertheless, the F1 team’s sponsorships and other income won’t be affected in this equity overhaul for Aston Martin.
Aston Martin’s structure isn’t new in F1
Like Aston Martin, many other teams in the paddock have a complex ownership structure, with the parent company carmakers usually owning a considerable stake and having an influence in the broader financial aspects of the team.
Even though the parent company’s boards don’t dabble in the sporting aspects, they keep an eye on the revenues earned via the F1 world championship. After all, F1 is an expensive sport for any manufacturer to participate in, and if they aren’t achieving success on track, the lack of prize money won’t please the company shareholders.
Likewise, if the parent company is in a dire situation, they will turn to their F1 operation for some aid, as has been the case at Aston Martin. However, teams like McLaren and Mercedes have fortunately not witnessed such situations.
McLaren’s F1 operation was, in fact, in a dire financial situation in 2017-18 with minimal sponsorship and an abysmal track record. However, under Zak Brown’s leadership and a new ownership from Bahrin, the Woking-based team turned around their fate to improve their performance and started securing sponsorships at a canter in recent years, which would’ve pleased their parent company.
Mercedes, on the other hand, has a complex structure with Mercedes-Benz and Ineos possessing one-third stake each in the Brackley-based F1 operation. The final one-third stake in with the team principal and CEO, Toto Wolff himself. And given Wolff is an experienced and clever businessman, Mercedes would rarely face a financial calamity.
