Daimler CEO Ola Kaellenius has announced that they are planning to slash the budget of the Mercedes F1 Team, but he reaffirmed their commitment to Formula One.
Speaking at a virtual roundtable event with reporters earlier this week, the CEO of the Mercedes F1 Team’s parent company said: “We have as little reason to step out of Formula One as Bayern Munich has to step out of football.”
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Continuing, he said: “The net financial impact [of competing in F1] 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.”
A $145 million budget cap will come into effect for all F1 teams next year, and it will subsequently be reduced to $140 million and $135 million over the following two years.
Kaellenius also emphasised that Daimler is looking to make Formula One emissions neutral by investing in synthetic fuels and exploring other avenues, though he didn’t set a deadline for this objective.
Last month, ex-F1 team owner Eddie Jordan claimed that Ineos was poised to buy the Mercedes F1 Team for £700 million, and would subsequently rebrand it.
Team principal Toto Wolff was quick to deny this rumour, insisting that Daimler and Mercedes are committed to Formula One.
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