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."

shares
comments
Red Bull looks good as Mexico pushes limits

Previous article

Red Bull looks good as Mexico pushes limits

Next article

US GP start discussed by Mercedes to avoid more controversy

US GP start discussed by Mercedes to avoid more controversy
Load comments
How F1’s other champion to emerge from 1991 thrived at Lotus Plus

How F1’s other champion to emerge from 1991 thrived at Lotus

Mika Hakkinen became Michael Schumacher’s biggest rival in Formula 1 in the late-90s and early 2000s, having also made his F1 debut in 1991. But as MARK GALLAGHER recalls, while Schumacher wowed the world with a car that was eminently capable, Hakkinen was fighting to make his mark with a famous team in terminal decline

The forgotten F1 comeback that began Jordan’s odyssey  Plus

The forgotten F1 comeback that began Jordan’s odyssey 

Before Michael Schumacher – or anyone else – had driven the 191 (or 911 as it was initially called), Eddie Jordan turned to a fellow Irishman to test his new Formula 1 car. JOHN WATSON, a grand prix winner for Penske and McLaren, recalls his role in the birth of a legend…

Formula 1
Sep 20, 2021
The squandered potential of a 70s F1 underdog Plus

The squandered potential of a 70s F1 underdog

A podium finisher in its first outing but then never again, the BRM P201 was a classic case of an opportunity squandered by disorganisation and complacency, says STUART CODLING

Formula 1
Sep 18, 2021
The other notable Monza escape that F1 should learn from Plus

The other notable Monza escape that F1 should learn from

OPINION: The headlines were dominated by the Italian Grand Prix crash between Max Verstappen and Lewis Hamilton, who had the halo to thank for avoiding potentially serious injury. But two days earlier, Formula 1 had a lucky escape with a Monza pitlane incident that could also have had grave consequences

Formula 1
Sep 17, 2021
How Monza only added more questions to F1's sprint race conundrum Plus

How Monza only added more questions to F1's sprint race conundrum

With two sprint races under its belt, Formula 1 must now consider its options for them going forward. While they've helped deliver exciting racing on Sundays, the sprints themselves have been somewhat lacking - creating yet another conundrum for F1 to solve...

Formula 1
Sep 16, 2021
Who should Alfa Romeo sign for 2022's F1 season? Plus

Who should Alfa Romeo sign for 2022's F1 season?

OPINION: With Valtteri Bottas already signed up for 2022, all eyes are on the race for the second seat at Alfa Romeo next year. Antonio Giovinazzi is the current incumbent, but faces a tough competition from appealing short and long-term prospects

Formula 1
Sep 15, 2021
The "forced break" that was key to Ricciardo's Monza excellence Plus

The "forced break" that was key to Ricciardo's Monza excellence

OPINION: Daniel Ricciardo has long been considered one of Formula 1’s elite drivers. But his struggles at McLaren since switching from Renault for 2021 have been painful to watch at times. Yet he’s recovered to banish those memories with a famous Monza win – built on a critically important foundation

Formula 1
Sep 14, 2021
How Verstappen is ruining his F1 title battle with Hamilton Plus

How Verstappen is ruining his F1 title battle with Hamilton

OPINION: The Italian GP clash between Lewis Hamilton and Max Verstappen followed a running theme in the 2021 Formula 1 title fight. Their close-quarters battles have often resulted in contact - and although Hamilton has shown a willingness to back off, Verstappen must learn to temper his aggression

Formula 1
Sep 14, 2021