Swiss technology major ABB has reportedly inked a major sponsorship deal with Formula E racing.
The Zurich-based company is likely to become the title sponsor for Formula E Championship, Sky News has reported. The deal is reported to be the biggest ever sponsorship tie-up for the electric car racing series.
The deal is likely to be announced in London, before the season opening race for 2018. The inaugural race is slated for Marrakesh, Morocco, over the next weekend.
The total value of the deal, though not revealed as yet, is considered to be in the range of $15m per annum.
Formula E racing by its fourth season has already attracted luxury car manufacturers like Audi, Jaguar Land Rover, and Renault. Porsche and Mercedes have also shown keenness to join the series as they are set to launch their battery-powered vehicles for the consumer market.
The Formula E association establishes a direct brand connect for ABB, which has a good presence in electric vehicle market with large power grids and electric car-charging points. The company is also a leading player in industrial robotics and automation and wider electrification products.
With the Formula E tie-up, ABB will join the club of elite brands like Julius Baer, the Swiss private bank, German insurer Allianz, Hugo Boss and Visa as Formula E commercial partners.
Although it has secured blue-chip sponsors, Formula E remains a minnow in broadcasting terms, particularly compared to Formula One, which continues to draw large global audiences.
The smaller of the two has raised tens of millions of pounds by selling shares in Formula E Holdings, the ultimate parent company, with investors now including CMC Capital Partners, a major Chinese backer of entertainment, sports, internet and mobile assets.
“The global automotive industry is now undergoing profound changes with the power source shifting to renewable energy from traditional petrochemical, Ruigang Li, CMC’s chairman, said last year.
ABB declined to comment on Sunday, while Formula E could not be reached.