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It was only a week ago that we got wind of a potential buy-out deal between Volkswagen and the Red Bull Formula One team, but now it seems all of that conjecture has “gone up in smoke.” When asked if one could assume that after VW’s recent diesel-related fiasco that the F1 deal could be off, Red Bull team principal, Christian Horner, simply told NBC Sports, “that seemed to go up in smoke.”

“Of course it’s not an ideal situation,” Horner said. “I’m working hard to try and find a solution, and hopefully there will be a solution in the coming weeks but it’s quite simple. If we don’t get an engine, we can’t push the car,” he added.

Red Bull owner Dietrich Mateschitz has been in the news recently, questioning the team’s F1 future. “Dietrich Mateschitz doesn’t tend to make idle threats so when he does talk, you have to listen to what he says,” Horner added.

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He went on to say “other activities have been stopped at very short notice whether it’s NASCAR or Red Bull Air Race. F1 has to fulfill a purpose, and if it doesn’t fulfill that purpose within the group, then serious questions will be asked.”

Horner told the news portal that much of the blame has been laid upon its current engine supplier Renault. “I think what you have to understand with Red Bull is that having paid for an engine with Renault throughout our relationship, as a paying customer, it’s unacceptable to get a product as inferior as we’ve received,” he said.

“Therefore, with the way that the regulations are, unless you have a Mercedes or a Ferrari power unit, it’s quite simply impossible to compete. If we’re not able to compete, then you have to question what is the validity of remaining in F1,” he concluded.