Mercedes may have faced speculation during the season that F1 can be unplugged, but there is no doubt that 2020 will end with more commitment than ever before.
A recent partnership with INEOS has led to a remodeling of the stake, creating what team boss Toto Wolff has called a “co-power” to continue his progress in F1.
Still, the complexity of arranging INEOS’s approval and the team’s neat tripartite division is related to arranging Wolff’s new team’s principal agreement, which is very difficult to publish. Explains why it took so long.
But what I’m telling the Mercedes chief right now is that sports aren’t really a hot topic this year as to whether F1 fits well into the future of road car companies in the changing times of car makers. It’s easy to check all the boxes you need for a German car maker.
For Mercedes President Ora Carenius, it is important to make a decision on reasonable reasons, not just the feeling of enjoying the race, when discussing whether to commit to F1 during the new Concorde Agreement period from 2021. did. ..
And, as Carenius explains, there were finally four important “pillars” that the sport had to fulfill in order for Mercedes to be completely convinced that F1 was the right place.
“I know there was some speculation in the press, but I never seriously considered withdrawal because it’s such a powerful part of our legacy,” said Autosport in F1. When asked about the future of the company, Carenius explained.
“We literally have a brand born on the racetrack. But beyond the emotional connection to sports, what are the pillars that make up F1? How do you see this from a rational point of view? In our view, you have come up with four pillars that you need to answer yes. “
These four key areas were show, environment, finances, and future profitability.
Here Carenius explains why they were so important to Mercedes.
Shows, shows, plays
F1 sometimes throws dull races, but the 2020 F1 season shows how the sport really offers a pretty exciting sight.
Liberty Media’s increased exposure to social media and the move to lag behind esports also helped younger viewers. This is what Mercedes is particularly happy with.
Carenius explains: “The main reason is how about the show, how good is the show, and what about the fan base?
“Recently, I’ve especially seen through social media an explosive increase in reach, and the best news is that young fans are coming in, so young people aged 15-30 are coming through social media, and through Esports. Through a great show.
“I don’t know of a better motorsport spectacle than Formula 1. That was the number one question. I answered yes.”
The move to F1’s turbo-hybrid engine has been a major sport change in meeting the environmental needs of automakers, but over the past two years it has significantly strengthened its environmental commitment.
In addition to promising F1 to be carbon-neutral by 2030, the sport looks to the future where Grand Prix racing will be the battlefield for sustainable fuel technology.
And while the continued use of hybrids may not be in direct agreement with manufacturers focusing on the future of all-electricity, Carenius says F1 is doing the right thing.
“We have made a very clear promise that Daimler and Mercedes will enter a CO2-neutral future with the passenger car’Ambition 2039′,” he said, referring to his company’s CO2-neutral goals.
“We want to achieve a CO2 neutral position in three product lifecycles within 20 years. There must also be a reliable path to sustainable motorsport.
“I also talked to Greg Maffei. [Liberty president] I very much agree with FOM about this. Earlier this year, we published a team manifest on how to move the Mercedes F1 team towards CO2 neutrality.
“Technology is an important part of it. It’s already hybrid today and you can see its electrical part increasing. It’s a low-carbon or carbon-free fuel test site and has some role in the world. Will eventually be carbon neutral.
“That second [pillar], Can you make the sport more sustainable? I think yes. And we are certainly working on it. “
F1 costs have risen dramatically in recent years, with successful teams spending hundreds of millions of pounds each year to win.
Rapid spending acceleration was unsustainable, and even successful car makers risked withdrawing from F1 if they couldn’t justify spending on the company’s board.
F1’s imposition of budget caps from 2021 has to do with changing the way sports are funded to make it more equitable for everyone, and it’s easy for Mercedes to stay in F1. is.
“Third thing [for us] “It was financial sustainability. Costs Cost caps help. We were in favor of it. It makes economic proposals better, so we also put it in that box. I think you have checked it.
Changes in F1 costs will also completely change the team’s business model.
Once a pitfall of money for owners, it now has the opportunity to make finances much more attractive and even profitable.
“The fourth was whether it always needed to be a cost center or a sports franchise like American football clubs and American football clubs,” Carenius continued. “And now we can see that people are starting to see this as a sports franchise.
“Incorporating a great and powerful professional partner who knows professional sports like INEOS into the picture shows that. Someone like Jim shows that. [Ratcliffe, INEOS CEO] I think that the decision to join forces with us will strengthen that fourth pillar.
“And with these four pillars, I have a clear decision. We are in.”
“Four Pillars” Helped Mercedes Commit to F1 | F1 News
https://www.autosport.com/f1/news/154329/the-four-pillars-that-helped-mercedes-commit-to-f1 “Four Pillars” Helped Mercedes Commit to F1 | F1 News