With the coronavirus crisis, Mercedes will have to make even more savings than expected, furthermore, even prior to pandemic the Daimler Group was not in a favourable monetary situation.
The question may then arise: will Covid lead Daimler’s Board of Directors to review the F1 team’s commitment? TJ13 certainly believes so, with several articles being published last year.
But in a recent interview, Toto Wolff gave some information that could put this possibility into perspective for some. Indeed, according to the team manager, the team’s commitment allows Mercedes to generate the equivalent of 4.5 billion dollars in returns, in terms of visibility and marketing for the brand.
The team’s budget (around 600 million euros), the operation is a total winner for Mercedes claims the F1 team’s biggest advocate.
“In 2012 we generated the equivalent of 60 or 70 million in advertising revenue; and today, believe it or not, we are at 4.5 billion”, Toto Wolff said.
“And all this has unlocked so much potential. Mercedes today is seen as a sports brand. This was not the case 10 years ago.
“We’ve become a really cool brand. And I think we’ve played our part in helping the brand change its image, in meeting this success, in triggering emotions. Because that’s basically what you want to trigger in any marketing activity – emotions. And that’s what we do. ”
Of course, Toto wouldn’t exaggerate this figure in a public interview. That said, he might exaggerate the importance of the fact in relation to Mercedes AMG staying in Formula 1.
The return is substantial but in the law of diminishing returns set against the background of total road car electrification the world is headed to. The Corona pandemic would likely be the last nail in the long term future coffin for Mercedes.