Mercedes owner Daimler is committed to Formula One but is working to slash costs and cut the environmental impact of motor racing, CEO Ola Kaellenius has said.
“We have as little reason to step out of Formula One as Bayern Munich has to step out of football,” he said during a virtual roundtable discussion with journalists on Wednesday.
The carmaker is developing a plan to make its participation in the sport emissions neutral, including through the use of synthetic fuels in upcoming seasons, and wants to improve the costs of competing in motor racing.
The cost reduction will be aided by the introduction of a $145 million budget cap in Formula One next year, which is set to reduce to $140 million in 2022 and to $135 million in 2023.
“The net financial impact will be halved in the next three years. We have an even more aggressive cost reduction target in Formula One than for the rest of the company,” Kaellenius said.
Separately Kaellenius reiterated that Daimler is “within striking distance” of meeting its carbon dioxide emissions reduction targets in Europe.
Mercedes-Benz has ramped up sales of electric and hybrid cars in the third quarter and will continue to do so for the rest of the year, he said.