WILL MERCEDES SELL THE F1 TEAM AND REVERT TO ENGINE SUPPLIER?

WILL MERCEDES SELL THE F1 TEAM AND REVERT TO ENGINE SUPPLIER?



http://www.gptoday.com/full_story/view/696634/Will_Mercedes_sell_the_F1_team_and_revert_to_engine_supplier/


Team principal Toto Wolff has played down suggestions that Mercedes could pull-the-plug on their Formula 1 programme after 2020 amid suggestions that they are already paving the way for such a development.

When McLaren’s new long-term Mercedes engine deal from 2021 was announced at Sochi, many suspected it could be a hint about Mercedes’ future with its own works team.

Prior to the formation of its own works team, Mercedes’ works team in F1 was McLaren, winning titles with Mika Hakkinen and Lewis Hamilton.

Wolff rejected the theory that McLaren will once again become the main Mercedes team from 2021.

“We have a factory team and then the various alliances with our customers,” he is quoted by SpeedWeek. “No, the deal with McLaren is not an indication that we, as a factory team, will not be around.”

At the same time, as the teams squabble with Liberty Media over the regulations beyond 2020, Wolff admitted that Mercedes is not yet ready to sign up for 2021.

“We would like to understand how Formula 1 will continue, how it will evolve, but we would prefer to remain as a factory team,” he said.

Crucially, Wolff also said that the Brackley based works team, and Mercedes’ engine department located in Brixworth, are substantially different, “We are well-positioned as an engine supplier, as we have been for many years. We also have a factory team and both work independently.”

McLaren and Mercedes joined forces in 1995, the Woking outfit the preferred team and the partnership went on to win three drivers’ F1 titles and a constructors’ crown.

McLaren boss Zak Brown echoed Wolff’s sentiments, and told reporters at Sochi, “Everything we see indicates that Mercedes is staying in the sport.”

 

Numbers appear good for them to remain --- https://www.autosport.com/f1/news/146346/mercedes-reveals-cost-of-2018-f1-title-win

The marketing revenue contribution of Daimler AG to the team's budget is listed as £64.3m, around £4m more than the previous year.

However £25.3m is returned by the team - reflecting the leasing cost of the power units supplied by sister company HPP.

That leaves a net Daimler contribution of less than £40m.

Mercedes enjoyed a 24% share of F1's TV coverage in 2018, which represents an AER (Advertising Value Equivalent) of $3.7bn for its commercial partners.

In emphasising the value of the F1 programme the team says: "In parallel to the team's success in recent seasons, the Mercedes-Benz brand has grown in value from $31.9bn in 2013 to $48.6bn in 2018 (as measured by Interbrand), with F1 making an important contribution to the brand's status as the eighth most valuable in the world."

 

I hope so

Seriously though, Mercedes need / get much more from the technology and research acquired from F1 as a team than just a engine supplier

 

If they go out now, they go out on top. If they wait, they risk looking as if they can't win anymore and are quitting. Now is the best time for them to step back.

 

There is no sign of decline yet though ...

 

I think it's the most valuable brand in the automotive world; I can't see no one touching them.

 

Brand value numbers are all over the place, but there is a trend to have a podium for Toyota-Mercedes-BMW, in that order.

 

Toyota may produce more cars, but I don't think it is in the same league as Mercedes in terms of desirability and prestige.

 

Percieved value.

Look at resale. They arent even in the same league. Buying a Mercedes new is a contractual agreement to take a bath.

While a 2015 Landcruisr can hold 70+ % of its value.

Older Mercedes are a different story.

 

Certainly not, but that's not the common definition of brand value. There are pseudo scientific ways to compute brand values, more or less comparing actual global valuations with "theoritical" valuations that would be based mostly on assets and profits. Of course this favours mass producers, because the brand value is an absolute value and not a relative value; Ferrari does not appear in any of the rankings for the ten most valuable auto brands because it's too small - that does not mean it's less desirable or prestigious that the better ranked brands.

 

I have been in many countries, and Mercedes is the most widespread automotive brand I have seen.
From South America to South East Asia, from Russia to South Africa, the Middle East, not discounting Europe and North America, of course.
You can find Mercedes on all continents, not only as cars, but also trucks, buses.

 

Ferrari is in a niche market, like most sports or luxury cars. Mercedes covers these too.
But Mercedes has a huge range of vehicles, that covers almost all the categories, from entry level to luxury limousines, from sedans to SUVs, from convertibles to sports cars, with a wide choice of engine capacities, fuel choice, Plus they offer also an impressive range of commercial vehicles, from small vans to big trucks in many different configurations, and they also make buses !!!
The Mercedes range of vehicles is simply unequalled by any other automotive manufacturer.

 

Great discussion, I can only add (with tongue in cheek) that the Mercedes safety car and medical cars are probably what really drives their global business. If they don't already make ambulances, maybe that's a new product line just waiting to happen! "If we can get to Lewis Hamilton in 4 seconds when he crashes and has a boo-boo, just imagine how fast your new Ambulance from Mercedes Benz will get to YOUR patients!"

 

If that’s the measure, then Ferrari trounce the lot, they are the most desired cars in the world ..... period.


Forza Ferrari..... the only racing team and car marque that matters. Italia forever It’s easier to apologise than it is to ask permission

 

Maybe the most brand recognition to the layman. Big knowledgeable collectors like Seinfeld and Leno have none. I would take an McLaren F1 over any Ferrari short of a 250 GTO. There are numerous interesting and significant cars that are more desirable than Ferrari's.

Ferrari as a brand may have the most marketing clout when it comes to sports cars. They simply market their brand better than anyone short of Apple.

 

Your last sentence is an interesting one.

I am not sure how Ferrari markets their brand. I mean they whore it out and license it like crazy... but I don't think they really market it. I think the brand has been deemed magical and aspirational buy the world... and frankly ferrari doesnt have to do anything except not screw it up.

 

Ferrari has lost its "exclusivity" as a brand over the last few decades, IMO.
It was unique in the 50s and 60s when it produced 300 or 500 cars a year, now the production is near 7000 and the second-hand market is flooded with Ferraris
Many would put Lamborghini or McLaren at the same level now in term of quality and prestige, and Aston Martin is getting there too.

 

I don't know anyone who would put aston in quality... Mclaren as well the quality is terrible... and the brand is not recognizable. Lamborghini yes. Mclaren no way. The Mclaren logo is a friggin star trek badge. On its own... you would catch more trekies than car guys

The volume is relative.

300-500 a year in a small pond was one thing.

Now so many more countries have people that can afford Ferraris. The production 0f 7k cars isn't a drop in the bucket of global population and millionaires.

As far as second hand... and value... a friend of mine bought a 330LMB and drove it to college because it was a really cool affordable car. Affordable used Ferraris are nothing new

 

In my lifetime, I have seen both Lamborghini and McLaren being born, and both taking a substantial part of the market from Ferrari.
Aston Martin has progressed since the 60s too.
The competition in that sector has been good for Ferrari, forcing it to adopt new technologies, when it was complacent.
Then, if you really want bespoke and exotic, you have Pagani, Mazzanti, or Koenigsberg, and recently ATS from the names that come to mind.

 

A partisan view, no doubt ...

 

A view with absolute personal experience no doubt.

 

lol Ferrari sells every car it builds and has a waiting list of years despite increasing production substantially over the years. people buying Lamborghinis and McLarens are getting them in addition to their Ferraris otherwise you would actually see Ferrari lose market share, which hasn't happened in the slightest.

Do I even need to bring up resale values? Go buy a new McLaren or Aston Martin and see how you're looking in 5 years versus a Ferrari.

please think before you post.

 

Ferrari is the most prestigious and valuable brand in exotic cars and its not even CLOSE. They are coveted the world over.

Your incessant anti-Ferrari bias/trolling got old a long time ago.

Mercedes could leave and no one would care in 5 years. Teams come, teams go, factory support comes in, factory support leaves. Ferrari is always there, like they have been from the start and it's a big part of why they are the greatest team in the history of the sport.

 

In case william wants to educate himself:

https://www.motor1.com/news/302730/ferrari-most-valuable-brand-study/

https://brandfinance.com/news/ferrari--the-worlds-most-powerful-brand/

 

It is not Mercedes.
It is Brackley.

There is more German influence in my Spaghetti Carbonara.

F1 Brackley has zero shared engineering DNA with Mercedes street cars.

But let's not upset the lemmings who believe the hype (to quote Flava Flav)