Mercedes doesn't want F1 spending war in battle with Ferrari

With the two teams clearly at the head of the field this season there is every danger a money-no-object development race could unfold over the course of the year.

But with F1's finances a thorny subject, Mercedes motorsport boss Toto Wolff is convinced that common sense will prevail within both leading teams.

"We need to be very careful about what we spend," Wolff told AUTOSPORT. "We need to stay reasonable.

"Everybody at Ferrari and Mercedes - and the other teams as well - are conscious we must not let the costs get out of control and end up in a spending war.

"We also live in the same commercial and financial reality, and behind the racing team we follow a sustainable business model.

"This is why there will be a natural limit on spending, as to how far we can go, and the same applies to the other teams.

"There is absolutely crystal clear direction from above, and I would expect the same from Ferrari who are living in the same reality.

"They are part of a big group, and whilst the brand is important, the bottom line of profitability is also important.

"If Formula 1 starts to bite you then this is a moment when it has again gone too far.

"We are far away from that right now, but we need to keep it in mind."

Wolff believes that for the sake of F1's future, no team should be pushing the envelope too far in terms of development spend

"We must not forget Red Bull, also McLaren with Honda, who have equal potential, but who are just not yet there," added Wolff.

"We have responsibility to the sport, and beyond our own business case it needs to make sense.

"We need to have an eye on Formula 1 and not let the costs escalate. This is crystal clear."