Red Bull and Infiniti sign a marketing agreement

Until now, the Red Bull single-seaters almost exclusively featured the energy drink’s logo. But securing the double world championship title in 2010 makes sponsors eager to be associated with them. This is why Infiniti has just signed a wide-ranging two-season agreement that does not include a change in engine name.

Rumors in the global blogosphere over the past few days suggested a potential agreement between the Austrian team and the Japanese manufacturer. This was supposed to involve a renaming of the engines supplied by Renault in favor of the luxury brand of its strategic partner, Nissan. Although the team has indeed confirmed the agreement, it does not currently include a name change. The team will therefore continue to be called Red Bull Renault.

Renault is therefore cleverly capitalizing on its brand portfolio. Although the company has sold its remaining shares in the former Renault F1 Team, it has never been as present in Formula 1 as in 2011. It supplies engines for a quarter of the grid (including Red Bull, Lotus Renault GP, and Team Lotus), which gives it a significant political weight. Moreover, it associates different brands that are part of the Renault-Nissan Alliance.

The single-seaters of Nick Heidfeld and Vitaly Petrov carry not only the famous diamond but also the name of the Russian manufacturer Lada, of which Renault holds 25% (and could rise to 50% in the near future). Today’s agreement allows for the display of a new, much more upscale brand but with still limited international notoriety. Infiniti intends to position itself as Nissan’s alter ego of Toyota’s Lexus. To achieve this, it must expand its vehicle range and strengthen its global communication, as Andy Palmer, vice president of the Japanese brand, clearly explains: “By mid-year, Infiniti will simultaneously expand its global presence and broaden its range. With these two ambitions, it’s clear that Formula One offers an unparalleled communication platform, perfectly complementing the brand’s slogan ‘Inspired Performance.’ We are eager to have the opportunity to enter Formula 1 with a world-class team like Red Bull Racing Renault.”

The brand’s logo will thus make a massive appearance on the team’s communication supports: the suits and cars of Sebastian Vettel and Mark Webber, as well as on the team’s equipment. But this vast marketing plan also includes a technical component since Infiniti will partner with Renault to work on future technical collaborations with Red Bull Racing. While the Milton Keynes team confirms they will retain the engines for the 2011 and 2012 seasons, the engine blocks could be branded Infiniti during the major engine regulation change set to take place in 2013. Infiniti will thus be associated with the work of Renault Sport F1, as explained by its president Bernard Rey: «Having a partner from the Alliance as talented and committed as Infiniti is very welcome as we face the current and future challenges in Formula 1. It is therefore with great pleasure that I welcome Andy Palmer and his entire team into our Formula One adventure, and I look forward to starting the 2011 season as Alliance partners.»

This new agreement might have been negotiated in exchange for a significant reduction in the price of engines supplied to Red Bull, whose annual budget is estimated at $10 million. But rather than simply abandoning its presence alongside a world champion team, Renault is killing two birds with one stone by supporting the communication of two Alliance brands, whereas a few years ago, it preferred to rename the World Series by Nissan to World Series by Renault.

With the participation of RacingBusiness.fr