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Daimler Chairman of the Board of Management Ola Källenius says Formula 1 had to fulfil four pillars in order for Mercedes to be convinced to stay in the sport.
Throughout 2020 there were intense rumours that Mercedes might decide to leave Formula 1 as a works team, as early as 2021. Despite numerous statements to the contrary from team boss Toto Wolff and Daimler boss Ola Källenius, the rumours didn’t die down.
Now that Mercedes finally revealed the plan for its F1 future, namely an equal ownership split between Daimler, INEOS and Toto Wolff, Källenius could finally go into details on Mercedes’ decision-making process.
“I know there was some speculation in the press, but we never seriously considered pulling out because it’s such a strong part of our heritage,” the Swede said.
“We have a brand that was literally born on the racetrack. But we did ask ourselves in the board, what are the pillars that make up Formula 1, beyond the emotional connection to the sport?
“How do you look at this from a rational point of view? We came up with four pillars that you need to answer in our view with a yes.”
The pillars Mercedes pinpointe were the show, the environment, the finances and future profitability.
Källenius went on to explain each of those ‘pillars’.
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The Show
“The number one is: how is the show, is the show good? And what about the fan base?
“What we have particularly seen in the latest year, through social media, is really an explosion in the reach.
“And the best news is that the younger fans are coming, so the 15-to-30-year-olds through Esports, through social media, and through a great show.
“I don’t know a motorsport spectacle that is better than Formula 1. That was question number one. It’s answered with yes.”
The Environment
“We have made a very clear commitment for Daimler and for Mercedes to go into a CO2 neutral future, with ‘Ambition 2039’ for passenger cars.
“We want to achieve a CO2 neutral position in three product life cycles inside 20 years. There has to be a credible path towards sustainable motorsport as well.
“I’ve also spoken to Greg Maffei [Liberty president] about this at FOM, who very much agrees with it. And we put out a manifesto for the team earlier this year, on how we’re going to take the Mercedes F1 team towards CO2 neutrality.
“Technology is an important part of that. It’s a hybrid formula already today and I can see the electrical part of it increasing. I can see it being a testing ground for lower carbon or no carbon fuels, which will play some role in the world going carbon neutral eventually.
“So that second [pillar], can you credibly make the sport more sustainable? I believe yes. And we’re certainly committed to it.”
The Finances
“The third thing was financial sustainability. The cost cost cap helps. We were an advocate for it. It makes the economic proposition better.
“So I think we’re ticking that box as well.”
Future Profitability
“The fourth one was, does it always have to be a cost centre, or can it be a sports franchise, like a football club or an American football club in the US?”
“And we can see now that people are starting to look at this more like sports franchises. Getting a great and strong, professional partner, that knows professional sport, like INEOS, into the picture shows that.
“The fact that somebody like Jim [Ratcliffe, INEOS Chairman] makes a decision to join forces with us, I think reinforces that fourth pillar.
“And with those four pillars, to me, the decision is clear, we’re in,” concluded Daimler’s top man.
Source: autosport.com
