Dodds bullish on Formula E prospects despite McLaren's exit

Yesterday at 07:27 PM

Formula E CEO Jeff Dodds expressed optimism about the team currently known as NEOM McLaren continuing in Formula E beyond this season following the British outfit's decision to withdraw its support.

McLaren announced it would withdraw from Formula E following a "strategic revue" and its decision to compete in the World Endurance Championship's Hypercar category from 2027. Speaking on Friday, Dodds shed more light on the situation and admitted that the organization’s departure was unexpected but understandable given McLaren's own ambitions – both in racing and with its road car business – and sponsor considerations, with title sponsor NEOM not expected to continue past its current deal.

"I can't sugar coat it, because it's bad news," Dodds conceded in a call with select media.

"It was a surprising conversation. I didn't start that day expecting that call, but when it was presented to me, as much as I don't like it, I broadly understand it because I know the types of cars that McLaren Automotive sells today and their pipeline for types of cars they're going to sell for the foreseeable future. I know their sponsorship landscape, and I know what Zak's racing ambitions are.

"Whilst it was a difficult call, it was a surprise, but in hindsight, there are other brands associated with the championship that would have been a much more surprising call."

As part of its announcement, McLaren team principal Ian James revealed work was underway to find a new backer.

While it runs under the McLaren banner, the team is effectively an independent operation. Running out of its own headquarters in Bicester just over 62 miles northwest of the McLaren Technology Centre where its Formula 1 team is based, it runs customer Nissan powertrains and is currently in its third identity, having started life as HWA Racelab, then morphing into the Mercedes works team before it became McLaren.

Dodds explained Formula E's unique position in the motorsport landscape means that a replacement name partner for McLaren doesn't necessarily need to come from the motorsport or automotive space, with comparisons to sponsors like Tommy Hilfiger and Charlotte Tilbury – which lend their names to entries in the all-female F1 Academy series – as examples of similar scenarios.

"Ian is not limiting his thinking to traditional motorsport brands, whether that's OEMs, branded customer teams, or traditional motorsport sponsors," he said. "He's looking at a much broader landscape than that.

"The motorsport pool is quite a small pool to fish in and if that's the area we want to fish in, it's highly competitive. We're a 10-year-old business, and also our fanbase is not typical of motorsport fanbases — it's gender split, it's much younger on balance, and lots of digital natives.

"We tested the theory with Evo Sessions and about 90 percent of the accounts that have viewed that content through our channels are new to Formula E, so we're taking a motorsport product to a brand new audience. I think we're a great canvas from which brands can promote their product. What I think that requires, though, is brands that are not traditional motorsport brands to also be looking at us. We're trying to mix it up and do different things, and by doing that we're having conversations with brands that have not traditionally been involved in motorsport.

"Ian's having loads of conversations, but if it brings in another motorsport or another automotive powerhouse onto the grid, that would be amazing. If it brought a globally-recognized, massive consumer brand or digital brand onto the grid, I think that would also be mega because I think it would take our sport to a different audience."

Dodds added that McLaren's exit offers an opportunity for a brand – automotive or otherwise – to come on board on their own terms rather than having to fit round another's interests.

"We need to have a pipeline of interested manufacturers wanting to join, at the right time, but we also need to have a pipeline of interesting brands that see this as a platform from which they can promote their brand and their brand DNA," he said. "We're talking to a number of those which are showing interest in coming into the championship, and as bad as the McLaren news is, it may present a canvas for some of those brands to get in in the way that they want to, that didn't really exist before."

The uncertainty surrounding the automotive landscape at the moment was something else Dodds acknowledged, but he suggested that only strengthens the case for a different kind of brand to come into the series – and that Liberty Global's investment in the series last year solidified the long-term prospect of the championship as a whole.

"There's no question, it's probably not a peak period for automotive manufacturing around the world," he admitted. "Car manufacturers were already having a challenging time. COVID didn't help them, and the tariff situation certainly isn't helping them, but it's not unique to the manufacturers that operate in Formula E — that is pretty much across all car manufacturers.

"What I would say is last year Liberty Global stepped in and acquired the stake of Warner Brothers Discovery. Liberty Global a massive global organization and they have an incredible track record of long-term investment, and they definitely look at Formula E as a very strong, long-term ventures investment for them. They won't be looking at this as a 'what happens over the next six months or nine months.’ They're viewing this in the long-term.

"I think it's a storm we have to ride out, but I also do appreciate that it's a really challenging period for auto manufacturers and a very uncertain period for them because then the tariff situation changes very regularly, it's a very fluid situation."

McLaren's exit is the latest high-profile one for Formula E. After Season 7, Audi and BMW departed the series as factory teams, with them both disappearing completely the following season – at the same time as Mercedes' exit – after a final year as powertrain suppliers to independent teams. Despite the alarm bells each respective departure has set off, Dodds says the series is in good health when it comes to manufacturer involvement, pointing to the number that remain involved compared to other top-level series.

"There are very few motorsports, globally, that have the manufacturer interest we have," he said. "IndyCar, two manufacturers; NASCAR, three manufacturers; Formula 1, four manufacturers. Obviously WEC's had a good run recently, but we currently have six manufacturers in the championship and five of those have already signed up and committed to GEN4.

"And these are not small manufacturers — Porsche, Jaguar, Nissan, Stellantis Group, Yamaha — these are big globally-recognized manufacturers, so I think we're in a really good place. I'm sure it was a bad period when the three German manufacturers left, but we have a good foundation for the championship.

"In the relative scheme of things, if you look at motorsport, we're in a really strong place with six manufacturers committed to our championship and five of them already signed up to take us to the end of 2030."