Williams sells its hybrid division
Williams has decided to focus on its core business: Formula 1. That's why it has decided to sell its hybrid subsidiary to engineering specialist GKN.
Over the years prior to its IPO, Williams embarked on a diversification process, aimed at creating additional revenue streams by selling technologies developed within its Formula 1 operations to other businesses.
The hybrid was one of the main sources of diversification since the team needed it when the first KERS were introduced in racing cars, whether in F1 in 2009 or in endurance. That’s why the team’s management decided in 2010 to take a majority stake, of 78%, in the company then called Automotive Hybrid Power.
This led to a number of contracts with very diverse companies. Obviously, Williams Hybrid Power began offering its services to other teams in different categories. It signed with Porsche and Audi, which led to victories at the 24 Hours of Le Mans and the Nürburgring. Building on its successes, it expanded into road cars, becoming a privileged partner of Jaguar in the development of the C-X75.
But then, she applied her knowledge in fields far removed from her core business as she signed partnerships with Sainsbury to train the chain’s drivers in eco-driving. Grove’s team signed the same type of partnership with taxis and buses in Qatar, where she established a Technology Center.
However, Williams now wishes to fully focus on competition and F1 again and has deemed it more advantageous to have an immediate cash inflow rather than continuing to spread its efforts across multiple fronts. This is even more logical considering the team’s recent seasons are far from the glory of the 1980s and 1990s. The transaction with GKN, which amounted to several million pounds sterling, also has the advantage of offering a stake in future sales of the entity, which will now be called GKN Hybrid Power. Thus, GKN will enable technologies born in F1 to be available to the general public.
With the participation of www.Racingbusiness.fr
