Daimler CEO says Mercedes has no reason to leave Formula 1

© Mercedes-Benz AG

Daimler CEO Ola Källenius reaffirms Mercedes’ commitment to Formula 1, but adds the costs of the operation “will be halved in the next three years”.

During a virtual roundtable discussion with journalists on Wednesday Källenius said Daimler is committed to reducing the environmental impact and the costs of its Formula 1 operation.

“We have as little reason to step out of Formula 1 as Bayern Munich has to step out of football,” Källenius said.

“The net financial impact will be halved in the next three years. We have an even more aggressive cost reduction target in Formula One than for the rest of the company,” concluded Daimler’s CEO.

In 2019 Mercedes spent around $440 million on its Formula 1 team. The reduction Källenius is referring to most likely has to do with the $145 million budget cap that Formula 1 will introduce in 2021. This means the reduction won’t affect Mercedes exclusively, it will be imposed on the entire field.

In other news, Källenius recently presented Mercedes’ new global strategy which includes the strengthening of ties between its F1 team and the AMG brand. However team boss Toto Wolff said this will not lead to a name change or team rebranding.

Source: reuters.com

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