The fallacy of F1’s high-tech hybrid engine

F1 engine rules makers hard at work

New research reveals that a manufacturer needs to spend over $1.2 billion just on its engine program if it hopes to win the F1 title.

According to Forbes, since development of the hybrid V6 power unit began, Mercedes costs will have totaled $1.4bn by the end of next year.

And if you were wondering, Ferrari is thought to have spent even more, but as the Italian manufacturer doesn't file separate accounts for its F1 team and the engine division this cannot be verified.

Nonetheless, the fact is that any new manufacturer would be looking at an astronomical level of investment, and even if they already have a racing division the new unit would need to be built from scratch.

Honda and Renault are already questioning their future involvement in F1 given their low win rates vs. the investment needed and with the cost cap, they will never be able to catch up

And with sales in the car industry starting to soften, it might not be long before all four manufacturers kiss F1 goodbye. We saw reports today that Mercedes is planning a big layoff and buyers are starting to get underwater with their car payments. A similar situation happened before the housing bubble burst in 2007/2008.