At the Detroit sit-down, Ford CEO Jim Farley and Red Bull Racing CEO Laurent Mekies detailed the expansion of their collaboration, which now includes development of a new hybrid power unit slated to race in the 2026 Formula 1 season. Ford has committed $200 million over the next three years to fund R&D at its new F1 technology center in Milton Keynes, U.K., with an additional $50 million allocated to its Advanced Electrification Lab in Dearborn. This investment builds on the initial 2023 agreement in which Ford supplied engine components and analytics software, contributing to Red Bull’s title-winning campaign in 2024.

Farley highlighted that transfer of F1-grade materials and manufacturing techniques is creating 350 new high-skilled positions across Ford’s U.S. plants, including 120 roles in advanced metallurgy at the Rawsonville Components Plant and 230 positions in precision machining at the Livonia Engine Plant. Ford reports a 15% reduction in component weight and a 10% increase in thermal efficiency by applying race-derived carbon-fiber composites and microchannel cooling systems to its next-generation electric drive units, slated for production in 2027.

Both executives addressed the legacy of Trump-era policies: 25% steel and aluminum tariffs remain a variable cost of roughly $300 per vehicle for Ford’s F-Series production. They also noted that new labor agreements—with a 20% wage increase over five years for UAW-represented employees—are factored into Ford’s capital planning, raising break-even investments by $1.2 billion. Looking forward, Farley emphasized that harmonizing North American Free Trade Agreement rules of origin under the USMCA, combined with targeted Relief Act tariff exclusions, could lower supply-chain overhead by up to 5%, supporting Ford’s goal of achieving 50% electric vehicle mix in North American sales by 2030.