Mercedes says it already makes a big loss on Formula 1 engines

Toto Wolff says Mercedes already loses a "substantial" amount money on Formula 1 customer supply deals amid requests to reduce the prices other teams are charged

Mercedes says it already makes a big loss on Formula 1 engines

Ferrari vetoed cutting the price of engines to customers, which is around €20million, to a figure revealed by FIA president Jean Todt to be €12million.

Todt also said he would be prepared to offer manufacturers stability in engine regulations beyond 2020 in return for cutting the supply cost.

But Mercedes chief Wolff, whose team supplies Williams, Force India and Lotus, said: "We already lose money on the engine side, substantial.

"The question is how much more do we lose if we continue to subsidise those engines to some of our partners, but it's already a deficit."

Wolff said he understood why there was a call for cheaper supply deals but repeated his stance that it comes down to a business argument.

"The partners expect the most competitive engine," he said.

"In order to have that, because it is a competitive environment, we spent substantial amounts in developing those engines.

"Nobody has ever asked us how we plan to recover those or if someone can contribute to help us to recover.

"You can argue whether the marketing benefit of the development spend is right of wrong, but as a matter of fact, we live in a world where we are all facing a commercial reality.

"That commercial reality is that we need to be as efficient as possible and try to recover the best possible amount.

"You cannot expect of anybody, any stakeholder in the sport, to have a charitable approach."

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