Ford CEO Jim Farley, Oracle Red Bull Racing CEO Talk Carmaker Industry
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What are the latest trends in the carmaker industry?
Bloomberg Audio Studios, podcasts, radio, news. I want to welcome our Bloomberg television and Bloomberg radio audiences to Michigan Central Station here in Detroit. I'm sitting down with Jim Farley, the CEO of Ford, as well as Laurent Mechies, who runs the Red Bull racing team. It's a pleasure, gentlemen. I'm very excited as a fan of the brand and the league. And let me start, Laurent, with you, because you've said... that this is the steepest hill F1 has ever had to climb. New regulations this year are sweeping. It's not just a tweak here and there. And you're starting with a brand new partner with Ford who is gonna build the engine with you as a collaboration. Why choose Ford as a partner?
You know, at first, you're right. It's the biggest regulation change probably in the history of Formula One, at least in the modern history of Formula One. And it's also on that very same year that we chose the, let me say, crazy challenge to go and build our own power unit. And if you do that, you want to partner with the best. And we are in a lucky position where we have managed to strike this strategic technical partnership with Ford. in this crazy adventure of building from absolutely zero our own power unit, and we go together in these new regulations.
Jim, for you, this must be exciting because you've built, honestly, a new legacy for Ford in terms of racing. I mean, on the one hand, you've got the new industrialized America here. On the other hand, you're going back to Le Mans. with a hypercar in a couple of years, you're essentially doing DFV 2.0, right? This is like the Cosworth of old. When you're talking to Bill Ford, when you're talking to the shareholders, how do you justify this spend and this drive to go racing?
Well, a couple things. First of all, the tech transfer, this sport that Laurent leads, this team that Laurent leads, you know, leader in aerodynamics, predictive failure components and software control of the hybrid system, high discharge batteries. These are all core capabilities that we need for the next five to ten years as a company. So the tech transfer is very relevant for us, like maybe four valves or overhead cams were in the 60s. But the tech transfer is totally different today.
How is Ford collaborating with Red Bull Racing on new technologies?
Formula One is a complete digital sport. And that's where we're going as a company, number one. Number two is racing, especially in the off-road world, gives us credibility for customers that the product they buy has real capability that's been tested in a way that a brand who doesn't race can't say. and that's what Porsche and Ferrari knew for a long time, especially for us in the off-road world. This is really important. Racing is a fundamental part of our company's business because To beat all the great off-road brands and to establish ourselves. Now we're 2X Jeep sales in the U.S. To keep that going and keep growing the off-road brand. Off-road racing in Dakar, Baja is where our customers will say, hey, that Ford has the real deal.
It's the real deal. It's not a poser product. So racing is integral into our credibility as a company.
And you've obviously got a deep, rich history there and you're bringing your software and battery technology, those capabilities, to Red Bull Racing. But for you, Laurent, this is a whole new thing, right? Building the engine. I know you're getting a lot of help from Ford. What are they helping you with on the fuel side?
Look, they've been helping us on many different topics, and that list of topics is expanding every day. But let me give you a couple of practical examples. James' team have unique advanced manufacturing capabilities that we use to produce some of the most critical parts of our engine. And not only are they able to... manufacture this part for us, but also they do it in less time than we would do otherwise. And that gives us a crucial, you know, our business is a time to market business.
What challenges does Formula One face with new regulations?
We call it a time to raise business. And when we are able to manufacture complex components in a short amount of time at this incredible level of quality that we are looking for, that's a key competitive advantage.
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Chapters
5 chapters
1
What are the latest trends in the carmaker industry?
0:02–2:31
2
How is Ford collaborating with Red Bull Racing on new technologies?
2:31–4:26
3
What challenges does Formula One face with new regulations?
4:26–8:22
4
Why is racing important for Ford's brand credibility?
8:22–10:37
5
How does Ford plan to leverage technology from racing?
10:37–12:24
Speakers
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