Wolff reveals Mercedes was very close to cost cap limit in 2024
F1 News
Getting under the cost cap is not an easy task for everyone on the Formula One grid. Speaking to Auto, Motor und Sport, team principal Toto Wolff explained that Mercedes were close to the red line.
"Very close," Wolff answered when asked about Mercedes' situation in terms of not going over the previously agreed limit. He continued: "You spend too much at the beginning of the year and then you start saving. At the end, we had to cancel some updates because there was no money left to produce those parts."
Why does the budget cap work according to Wolff
For Mercedes, the budget ran especially thin at the end of the season, as drivers were beginning to crash more. Andrea Kimi Antonelli damaged George Russell's car in Monza, and then the Briton also crashed at COTA and in Mexico City. After Hamilton also finished the US Grand Prix in the gravel trap, there was no budget left for the Germans.
Despite that, Wolff is still in favour of the cost cap. According to the Austrian team principal, the cap introduced in Formula 1 in 2021 leads to the F1 teams finally being profitable. "We are really making a profit. The profit ratio is at 30 to 35 per cent before tax. That even compensates for the cost of the engine. The old cliché that in Formula 1 you burn your money is a thing of the past."
The cost cap has also ensured that more and more parties are interested in Formula 1. For instance, starting from Audi will join Formula 1, and Cadillac's entry has also been approved. In addition, big brands like Toyota (partnership with Haas) and Ford (partnership with Red Bull Racing) were also announced to partner already existing teams.
This article was written in collaboration with Kada Sárközi
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