Caterham to return? Shock F1 2027 comeback targeted by investment firm
Giedo van der Garde testing for Caterham at Jerez
More than a decade on from the team’s demise, the Caterham name is being lined up for a potential return to the F1 grid.
That effort comes from investment entity SKM Capital, spearheaded by 24-year-old Kuwaiti investor Saad Kassis-Mohamed. The plan is to launch a new squad, SKM Racing, which would revive the Caterham name in F1.
Target set for Caterham F1 return
Additional reporting by Thomas Maher
Caterham arrived on the grid in 2012. Tony Fernandes’ takeover of Caterham Cars paved the way for a rebranding of his F1 team which had been operating under the Lotus name for the previous two seasons.
However, the team failed to score a point under either name and, due to financial troubles, dropped off the grid following the 2014 campaign. Japanese automotive group VT Holdings acquired Caterham Cars in 2021.
But Caterham will have another crack at Formula 1 if Kassis-Mohamed has his way. He is targeting an F1 2027 arrival on the grid with a customer power unit deal.
The Formula 1 landscape has changed drastically since Caterham was around.
The introduction of a budget cap has reduced the disparity between F1’s biggest and smallest spenders, while the sport is enjoying a major boom in popularity, adding to the much-improved financial security.
“F1 now operates with clearer financial guardrails and stable technical frameworks, making the category investable. We like the intersection of elite engineering, a global platform, and predictable cost governance,” said Kassis-Mohamed in a Sportstar interview.
“Caterham has strong recall and no current grid presence. A brand licence shortens the marketing ramp without reviving the defunct corporate entity or its liabilities.
“Our plan involves two options: a change of control transaction in an existing entrant or applying in the next FIA process as a compact, well-funded customer team with long-term PU supply.”
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Securing an F1 2027 entry no easy task
While Kassis-Mohamed stressed that “we respect the thresholds set by the FIA and F1,” it is these processes which mean the road to an F1 2027 arrival would be very bumpy indeed.
One only needs to look at the battle which Andretti and Cadillac went through. Approval from the sport’s governing body the FIA was swift, after an expressions of interest call for prospective new entrants, a period which has since closed.
Formula 1, though, originally said no. It was only after Michael Andretti stepped back, and Cadillac’s parent brand General Motors agreed to become an engine manufacturer down the line, that Formula One Management approved Cadillac F1’s bid to join the grid in 2026.
Without a reputable OEM [original equipment manufacturer] in its corner, SKM Racing reviving the Caterham name would likely not be enough to secure a place as Formula 1’s 12th team.
The FIA is open to expansion of the grid, which can expand to a maximum of 24 cars under the terms of the Concorde Agreement. The proposed Caterham effort is not the only project looking to secure an F1 berth.
“Talks,” Ben Sulayem said of the potential of a Chinese entrant, as he spoke to a small group of select media, including PlanetF1.com.
“I still feel that we need more teams [rather] than more races.
“The drivers are coming to me and saying: ‘Please, no more races.’
“When we opened the Expression of Interest [in 2023], what was the outcome based on? Due process, competency framework, and without looking at which company it was, as long as it fulfilled the regulations and the application of the FIA.
“We have an 11th team. I believe we should look into the performance of the 11th team, and then, if there is a Chinese [bid], and I will speak on behalf of them now in front of you, they [FOM] will agree to that, because it is about sustaining the business.”
He added: “If there is a team from China, let’s say, and FOM approved it, and I am 100 per cent they will approve it, wouldn’t it make more money with China coming in? I believe, yes.
“Do we have to fill up [the grid] with a 12th team for the sake of filling up [the grid] with a 12th team? No. It will be the right team.
“I am here as a sportsman and I’d like to keep the spirit of the sport.
“Of course, they will have to say, ‘Oh, it’s a piece of cake, and now it’s been divided into 11.’ Yes, I see the point. But the revenue is getting bigger.
“The time will come when we feel it right to open an Expression of Interest.
“We are not here to upset the other teams, but it won’t be just for the sake of doing it. It has to be worth it.
“For us, the [12th] team has to add value to sustaining the business of Formula 1, and the business of Formula 1 is not about the income, it’s about the longevity of the championship itself.”
