Red Bull: Meeting new F1 budget cap a "significant challenge"

Christian Horner says that meeting Formula 1’s new budget cap for 2021 has been a “significant challenge” for Red Bull, but feels it has been “well embraced”.

Red Bull: Meeting new F1 budget cap a "significant challenge"

F1 teams will operate under strict financial regulations for the first time in the series' history this year after moving to curb costs to become more sustainable.

In the wake of the COVID-19 pandemic, teams agreed to reduce the budget cap from $175 million per year to $145 million from 2021, setting the bar for the coming season.

While some teams operated under or around the budget cap total, F1's three biggest outfits - Mercedes, Red Bull and Ferrari - have faced the task of reducing costs to meet the budget cap this year.

Speaking about the response to F1's new budget cap for this year, Red Bull F1 chief Horner explained how it was a significant undertaking for the team, but was placing a focus on making processes more efficient.

"It's been a significant challenge, but I think the whole organisation has responded incredibly well," Horner said.

"It's been about addressing efficiency, which Formula 1 teams haven't been particularly great at in prior years. I think the challenge is significant, it's ongoing, but it's been well embraced.

"Obviously we've driven efficiency through internal capacity in terms of not outsourcing components, and I think we've seen significant reductions. But it's been a challenge and will continue to be a challenge to get there.

"But I think as a discipline for Formula 1, it definitely has a serious impact on the costs."

Read Also:

To meet the budget cap, some teams have been forced to restructure their staff and create jobs in external projects, such as applied technology or customer F1 squads.

McLaren F1 boss Andreas Seidl explained how he was focused on protecting as many jobs as possible and keep the team at the same size, making efficiency a key focus point.

"It's not a secret that we were welcoming this budget cap coming in this year, because it ensures, for a team like McLaren, that we can do Formula 1 in the future in a sustainable and competitive way," Seidl said.

"Our people worked quite hard the last 12 months in order to get ready for the budget cap coming in, because even for us, it means a reduction of costs being required.

"The focus is clear, we want to protect as many jobs as possible, we want to protect the size of the team, because in the end, the people make the difference in this sport.

"So we really focused on trying to find where we can save costs and where we can do things in a more efficient way. That's still a process that is ongoing, but I'm really happy with the steps we could put in place.

"I feel ready for it as a team, and quite optimistic now looking ahead for the budget cap coming in, because it brings us to a level playing field with these big spenders next to me."

shares
comments

Related video

Former F1 driver Johnny Dumfries passes away at 62

Previous article

Former F1 driver Johnny Dumfries passes away at 62

Next article

How Dumfries’s Lotus F1 dream turned into a nightmare

How Dumfries’s Lotus F1 dream turned into a nightmare
Load comments

About this article

Series Formula 1
Teams Red Bull Racing
Author Luke Smith
How long can Verstappen and Hamilton keep it clean? Prime

How long can Verstappen and Hamilton keep it clean?

Lewis Hamilton and Max Verstappen have been evenly matched so far in the 2021 Formula 1 title race. Neither has been afraid to get aggressive against each other on track, teeing up an enthralling contest as the year unwinds. But how long will their battle remain clean? Jonathan Noble ponders that exact point

Formula 1
May 13, 2021
How Brabham’s one-hit wonder was boxed into a corner Prime

How Brabham’s one-hit wonder was boxed into a corner

The Brabham BT46B raced once, won once, then vanished – or did it? STUART CODLING reveals the story of the car which was never actually banned…

Formula 1
May 11, 2021
The changes Barcelona needs to provide a modern-day F1 spectacle Prime

The changes Barcelona needs to provide a modern-day F1 spectacle

Formula 1’s visits to Circuit de Barcelona-Catalunya over recent years have been met with familiar criticisms despite tweaks here and there to the track to improve racing. With the 2021 Spanish Grand Prix largely going the same way, proper solutions need to be followed to achieve F1’s wider targets

Formula 1
May 10, 2021
Spanish Grand Prix Driver Ratings Prime

Spanish Grand Prix Driver Ratings

Often described as Formula 1's laboratory, the Circuit de Catalunya-Barcelona gave the clearest demonstration yet of the pecking order in 2021. And it's the key discrepancies from that order which illuminate who is excelling, and who needs to hit the reset button.

Formula 1
May 10, 2021
How Red Bull's deja vu set Hamilton on the winning path in Spain Prime

How Red Bull's deja vu set Hamilton on the winning path in Spain

An aggressive first corner move from Max Verstappen appeared to have set the Red Bull driver on course for victory in the Spanish Grand Prix. But canny strategy from Mercedes - combined with the absence of Red Bull's number two from the lead group - allowed Lewis Hamilton to pull off a demoralising reversal

Formula 1
May 10, 2021
The Barcelona practice times that prove Red Bull has hidden pace Prime

The Barcelona practice times that prove Red Bull has hidden pace

Lewis Hamilton led the way in Friday practice for the 2021 Spanish Grand Prix, but there was one major encouraging sign for Red Bull. However, making good on that gain will require Max Verstappen to avoid repeating a mistake that left him well down the FP2 order...

Formula 1
May 7, 2021
Why McLaren doesn’t doubt Ricciardo can escape his ‘dark’ place Prime

Why McLaren doesn’t doubt Ricciardo can escape his ‘dark’ place

Three points finishes from as many starts represents a decent opening innings on paper, but Daniel Ricciardo has endured a tough start to his McLaren career - only magnified his teammate's excellent form. Yet both he and the team have good reason to expect a turnaround soon.

Formula 1
May 6, 2021
What needs to “change” for Red Bull is ending Verstappen’s errors Prime

What needs to “change” for Red Bull is ending Verstappen’s errors

OPINION: Going up against the dominant force of Mercedes and Lewis Hamilton was always going to demand the best from Red Bull and Max Verstappen. But after making a couple more errors during the Portuguese Grand Prix, the Dutch driver showed there's a small gap he still needs to close in the 2021 Formula 1 title fight.

Formula 1
May 5, 2021