Daimler CEO clarifies choice for INEOS: "Win-win situation"
F1 News
- GPblog.com
In February 2020, Mercedes announced that they had attracted a new main sponsor for the team in INEOS and that partnership obviously went down well. Indeed, in December 2020, the chemical group purchased 30 percent of Daimler's shares. As a result, INEOS now has a significant stake in the Formula One team, and Daimler CEO Ola Kallenius now explains why they went into business with each other.
All one-third
At the moment Daimler owns one-third of the team, 30 per cent belongs to INEOS and the share of team boss Toto Wolff has also been increased to one third. This makes three parties the biggest stakeholders in the team and with the sale of shares to INEOS they are putting a lot of trust in the company, not without reason.
Kallenius: "We know INEOS and we have worked with them before on the commercial side. They bring both: expertise on the technical side, but also on the sports side." That approach forms the basis for a further extended cooperation with the company, which Kallenius and Wolff decided on together.
"When Toto and I sat down and discussed how we wanted to proceed, we looked at whether we wanted to add someone to our successful partnership and whether we wanted to bring in another strong third partner. That's when we decided it made a lot of sense for us. When we do a deal like this, we clearly make sure it's a win-win situation for all parties."
Little revenue
Looking purely at the financial picture, the Formula 1 team has generated mostly revenue. In doing so, Kallenius does give the impression that they are not huge profits, but Mercedes can find those elsewhere. "It's obviously the technical value we can get from the team. It is, in extreme conditions, the ultimate testing ground for some of the technologies we are developing for the future."
"The return on investment is good right now. But it will get even better," Kallenius expects, and that's with the budget cap in mind, which of course is a factor to consider starting this year. "I think it's possible to make a business of the team that makes money. You can compare it to a real sports franchise, like soccer or American Football is."
INEOS also plays a role in this, and at the moment they are satisfied with the current distribution. "I am happy with the picture of one third each. It's a very harmonious relationship," Kallenius told Motorsport-Total.com.