Is the Mercedes dictatorship in danger in F1?

Daimler's CEO has announced a budget reduction, in addition to endorsing its continuity in the grand prix.


It is unnecessary to insist that these are bad times for the economy and that the recovery is complex in the short term. The automotive industry is one of the most affected by the coronavirus crisis, not for nothing its products represent a significant burden for most buyers. That is why large companies adjust their budgets and the powerful German group Daimler wants to do so also in the game for Formula 1 with its Mercedes team.

This has been confirmed by Ola Källenius, CEO of the company, in statements to the TV6 network: “The financial burden that Fórmula represents will be reduced by half during the next three years. In this sense, our objective for competition is more aggressive than in other areas of the company. ”

The positive side of this statement is that it endorses the continuity of Mercedes in the grand prix, thus clearing up the doubts that had arisen in recent times. "We have no reason to withdraw from F1, it would be as if Bayern Munich were leaving football," Källenius commented on the matter.

In any case, the budget reduction should not pose a major problem for the hegemonic Formula 1 team. Starting next year, a budget limit for teams of 145 million dollars (about 133 million euros) has been stipulated, with the objective of equalizing the resources available to all of them and, consequently, encouraging competitiveness.

Considering that last year the budget of Mercedes F1 was around 430 million dollars (366 million euros), the reduction to half that Daimler now proposes will continue to more than cover the spending needs of the team.

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