FIA Expected to Reject New Formula 1 Team Applications, Except for Cadillac-Backed Andretti Global

The Fédération Internationale de l’Automobile (FIA) is set to reject three applications for new Formula 1 teams, with the exception of Andretti Global, which is backed by Cadillac. According to a report from Autosport, Formula 2’s Hitech GP and Rodin Carlin, along with Asian LKYSUNZ, submitted bids to join the top-level competition. However, it appears that Andretti Global will be the only team granted permission to form the racing series’ 11th team.

Formula 1 retains the final say on admitting a new entry to the grid, with CEO Stefano Domenicali emphasizing that an additional team is unnecessary unless it brings additional value. Existing teams have also expressed opposition to Andretti expanding its IndyCar and Formula E outfit into grand prix racing. They argue that the current dilution fee of $200 million that any new team would have to pay to join the grid is insufficient compensation.

LKYSUNZ, Hitech, and Rodin Carlin have reportedly been informed that their submitted information was not sufficient for a positive evaluation. An announcement from LKYSUNZ claimed that it was prepared to pay a dilution fee of $600 million, thanks to backing from a new billionaire investor from Florida. However, speculation suggests that LKYSUNZ staff have been informed of their rejection by the FIA, leading them to seek employment elsewhere.

With Formula 1 aiming to increase viewership in the United States, it seems likely that Andretti Global will be granted entry. On one side, you have two British teams that are relatively unknown to most Americans, along with a mysterious Pan-Asian entrant that lacks substantial information. On the other side, you have the Andretti family’s rich racing heritage and General Motors, the largest automaker in the United States.

Considering these factors, it’s clear who has the advantage. America’s beloved multi-generational racing family, backed by Cadillac, is a strong contender. In contrast, the Formula 2 teams are relatively unfamiliar outside of Europe, and the Asian firm lacks visibility and credibility.

While catering to the Asian market may be a consideration for Formula 1 due to its potential viewership, LKYSUNZ does not seem to be the right vehicle for that purpose. Instead, they appear to be focused on establishing a presence in the United States.

LKYSUNZ reportedly submitted new documents in the hope of revising the FIA’s assessment. However, the deadline has passed, and the decision is expected to be final at this point. LKYSUNZ CEO Benjamin Durand stated, “We are still in dialogue with the FIA. But I can’t go into details at the moment because we are bound by an NDA which we respect.”

The rejection of the three applications, except for Andretti Global, aligns with Formula 1’s long-standing goal of increasing its popularity in the United States. The Andretti family’s racing legacy and partnership with Cadillac make them a compelling choice for entry into the prestigious racing series.

In conclusion, it appears that Andretti Global will be the only new team granted permission to join Formula 1, while the applications from Hitech GP, Rodin Carlin, and LKYSUNZ are expected to be rejected. The decision reflects Formula 1’s desire to boost viewership in the United States and leverage the Andretti family’s racing heritage and partnership with Cadillac. While LKYSUNZ expressed willingness to pay a higher dilution fee, it seems that their lack of visibility and credibility ultimately worked against them.