A source said Daimler, Mercedes Benz’s parent company, would discuss whether to continue the race at its next board meeting, a decision that would not be taken lightly, according to foreign media outlet AutoCar. The Mercedes-AMG Petronas team, along with British driver Lewis Hamilton, have won all constructors and drivers’ championships since 2014. Winning the title for the 2020 season, which starts in Australia on March 15, would mark its seventh consecutive win.
Fame and prize money are a temptation to resist, but the cost of racing has become a growing concern for Mercedes-Benz. Daimler issued three profitability warnings in 2019, warning investors that its annual profit fell by about 50 percent to 5.6 billion euros (W7.3 trillion). It has also cut more than 1,100 managerial jobs and frozen wages, while investing huge amounts of money in developing technologies for electric and self-driving cars. Ola Callenius, Daimler’s CEO, summed up, “We need to cut costs.”
Mercedes knows it will have to spend a lot of money to stay competitive while adhering to the new Formula One rules that will take effect in 2021. Ironically, the new rules are envisioned as a way to make racing more competitive and affordable by limiting the amount available to teams. Rival Ferrari have also repeatedly threatened to quit the race over the new rules.
Compared to the current S-Class, the vehicle in this photo appears to have a relatively flat side without a character line. The chrome-finished door handle appears to be inside the door.
It is not known what functions will be included in the new Mercedes-Benz S-Class, but it is expected to be equipped with embedded door handles, full digital instrument panels, vertical infotainment touch screens, and level 3 autonomous driving functions.
Rumors have it that the new S-Class will feature only a hybrid powertrain in a six-cylinder engine with a 3.0-liter gasoline and 2.9-liter diesel. The plug-in hybrid model is expected to have an electric mileage of about 100 km. The fully electric model is expected to be launched as the “EQ S,” and the mileage is not yet known.
It makes sense to leave Formula One in this situation, but Mercedes is unlikely to completely cut ties with Formula One. AutoCar said it would likely maintain engine supply, one of its lucrative businesses, adding that Toto Wolff, who leads the team, may seek new investors and buy the team to continue racing. Toto Wolff already has a 30% stake in the team.
Toto Wolff has reportedly asked Lawrence Stroll to help with the acquisition. Lawrence Stroll, a Canadian billionaire, owns a Formula One team, and an earlier article claimed he was preparing to buy a stake in Aston Martin. Geely Motors, a Chinese company that owns Volvo, Polestar, London Taxi Company, Lotus, 6.69 percent stake in Daimler and a half stake in Smart, are also expected to join the deal.
What Happens to Lewis Hamilton? An article on Formula One’s official site says Hamilton will race in Ferrari for the 2021 season. Ferrari, the famous Italian racing team, has not won a championship since 2008. A contract with Hamilton, F1’s best driver, would significantly increase his chances of claiming the top spot on the podium. If that happens, Hamilton will replace Sebastian Vettel.
None of this is official. The parties declined to comment, so they will have to wait for Daimler’s next board meeting in early February to see exactly what happens.