Mercedes using financial engineers to analyse value of every F1 car part

Mercedes is using financial engineers to assess each Formula 1 car upgrade to ensure it gets maximum value and stays within the financial cost cap limits this season.

Mercedes using financial engineers to analyse value of every F1 car part

F1's financial regulations installed a team cost cap in 2021 which has been lowered and set at $140m for 2022, with $1.2m added for having more than 21 races per season plus extra costs allowed for sprint races.

The team cost cap has primarily pinched the spending of the three biggest squads – Mercedes, Ferrari and Red Bull – while all F1 teams have needed to keep control of spending to avoid potential penalties if they overspend.

In order to keep a tight focus on its spending regarding F1 car development and upgrades, Mercedes team principal Toto Wolff says it is using financial engineers to account for its updates across the season.

"We have a tracker with financial engineers that track every single process and every single part that comes into the car," Wolff told Autosport.

"So when we take things out of the truck, the financial engineer notes, the value - when you utilise, it's being counted for.

"You are following this trend, like we have planned. We didn't bring a lot at the beginning, but it's coming steady now."

While F1 teams have been operating with a cost cap since last season, the start of a three-year glide path to a locked in and stable team budget, adjustments for inflation and rising costs have been allowed for this season with an increase of 3.1%.

The Mercedes team on the pit wall

The Mercedes team on the pit wall

Photo by: Steve Etherington / Motorsport Images

The biggest concern from F1 teams focused on how the FIA would control and penalise those who exceeded the budget cap, including monitoring and adjusting for changes, but Wolff remains confident the correct processes are being followed.

"It was last year already [when the cost cap came in] and we will have the results whether everybody adhered to the rules of last year and the reports are going to come out," he said.

"So I think you know, you can't get that wrong because if you're breaking the rules, in the same way you do when breaking the rules on technical stuff."

shares
comments

Related video

Latifi wants Williams to judge 2023 seat since British GP chassis change
Previous article

Latifi wants Williams to judge 2023 seat since British GP chassis change

Next article

Ferrari: "Wrong" to pin F1 2022 progress on rules headstart

Ferrari: "Wrong" to pin F1 2022 progress on rules headstart
Can Hamilton produce another Singapore magic moment? Plus

Can Hamilton produce another Singapore magic moment?

The Singapore Grand Prix has, explains BEN EDWARDS, played an important role in Lewis Hamilton’s Formula 1 career. As the series returns to the Marina Bay Street Circuit for the first time in three years, he faces the latest challenge with an underperforming Mercedes car

Why Sainz is key to Ferrari achieving its chairman's F1 goals Plus

Why Sainz is key to Ferrari achieving its chairman's F1 goals

Although Ferrari's chances of title glory in 2022 have evaporated, chairman John Elkann expects the team to have chalked up both championships by 2026. Both require drivers to play the team game and, having now become more comfortable with the F1-75, Carlos Sainz may be Ferrari's key to title glory

Formula 1
Sep 27, 2022
How F1 has tried to avoid repeating its 2014 engine rules mistakes Plus

How F1 has tried to avoid repeating its 2014 engine rules mistakes

With Formula 1’s future engine regulations now agreed, MARK GALLAGHER wonders if they will provide a more competitive field than past attempts actually managed

Formula 1
Sep 26, 2022
How its faltering first turbo car advanced a Williams-Honda glory era Plus

How its faltering first turbo car advanced a Williams-Honda glory era

STUART CODLING charts the development of the Williams FW09, the ugly duckling that heralded the start of the title-winning Williams-Honda partnership

Formula 1
Sep 25, 2022
The Moss-Ferrari farce that current F1 drivers are thankfully spared Plus

The Moss-Ferrari farce that current F1 drivers are thankfully spared

Recent moves within the driver market have reminded MAURICE HAMILTON of a time when contracts weren’t worth the paper they weren’t written on…

Formula 1
Sep 24, 2022
Audi’s innovative first assault on grand prix racing Plus

Audi’s innovative first assault on grand prix racing

It has been a long time coming but Audi’s arrival in Formula 1 is finally on the horizon for 2026. But it won’t be its first foray into grand prix racing, as the German manufacturer giant has a history both long and enthralling

Formula 1
Sep 23, 2022
The seven factors powering Verstappen's 2022 F1 domination Plus

The seven factors powering Verstappen's 2022 F1 domination

After a tooth and nail and, at times, toxic Formula 1 world championship scrap last year, Max Verstappen's march to a second consecutive title has been the exact opposite. But has he really changed in 2022? Here's a dive into what factors have played a crucial role, both inside the Verstappen camp and elsewhere, in the Dutch driver's domination

Formula 1
Sep 23, 2022
Why Hamilton is still the man to keep driving Mercedes forward Plus

Why Hamilton is still the man to keep driving Mercedes forward

Lewis Hamilton’s words in a recent Vanity Fair interview define both his world-view and his approach to this season: one of perpetual struggle against adversity. As GP RACING explains, that’s what Lewis feeds off – and why, far from being down and nearly out, he’s using his unique skillset to spearhead Mercedes’ revival…

Formula 1
Sep 22, 2022