Mercedes decide to stop order further engine part from bankrupt supplier

14:15, 09 Nov 2024
25 Comments

Mercedes do not need to fear problems after the bankruptcy of the company - Reaction Engines - that supply turbochargers for the team's power units. Arrangements have been made by the German team, therefore, they will receive the necessary hardware for the 2025 season. Moreover, the team have already decided to stop using that turbocharger entering the 2026 season.

The turbocharger currently used by the team is an air-water cooler. The role of this part is to force additional air into the ICE (internal combustion engine). Most F1 constructors use a different type, because the air-to-air version is slightly slimpler. Mercedes' version is four times more efficient.

Mercedes supplier had frequent financial problems

This turbocharger is supplied by Reaction Engines, a company that previously also had financial problems. Those were previously solved by external investors, but in October, they could not find another investor.

170 workers (out of 208) in Oxfordshire were already told they would be let go before the start of November. The company tried to gather more money to continue, but a last-ditch effort to secure investment failed and as a result, the company was declared bankrupt.

This article was written in collaboration with Kada Sarkozi


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25 Comments
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Vegan Warrior 09 November 2024 at 17:09+ 4952

The company has been around for 35 years, another victim of Brexit the cost of doing business in the UK especially manufacturing is hectic. Mercedes will have to source that turbo form another supplier and thats gonna be an issue ? . Does this also impact Mercedes customer teams as well.

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J41L 09 November 2024 at 17:16+ 23193

Sure, the rest of the UE is doing brilliantly right now ? Just have a look at Germany..

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Vegan Warrior 09 November 2024 at 18:05+ 4952

Thank you for sharing ?

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Mavric 09 November 2024 at 17:30+ 19032

Vegan your right about brexit its affected lot of company .and stuff coming in to england the amout paper work trucks have and checks on the wagon.lot of countrys are suffring with it

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J41L 09 November 2024 at 17:57+ 23193

I don't think Brexit is a bad thing. The EU isn't doing very well either, same in the US. It will take some time for the UK to adapt. In 1992, they made us vote here if we wanna be part of the EU. It was a close decision but the swiss people said no. Same as for the Brexit, politicians and media said that it is going to catastrophic for us. We will get into poverty. But at the end of the day, we are in way better shape than the EU in most aspects. People from the EU are even coming to my country since decades in order to find a better life. It is also important to mention that EU and Europe is not the same thing, very different. The UK didn't say no to Europe, but did say no to the EU. I expect more countries to follow UK in the upcoming years if the EU doesn't wake up. The basic idea of the EU wasn't bad at all and makes also send. But the way it was executed was miserable.

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Vegan Warrior 09 November 2024 at 18:07+ 4952

@Mavric, you're right ✅️ I have so many friends that have had to close their business because they can't get stuff in as easily as before . Costs are up and time wasted is ridiculous.

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J41L 09 November 2024 at 18:30+ 23193

"had to close their business because they can't get stuff in as easily as before . Costs are up and time wasted is ridiculous" Sounds like the same issue most EU members are facing as well.

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Vegan Warrior 09 November 2024 at 18:40+ 4952

Thanks for sharing ?

jaffa 10 November 2024 at 15:10+ 261

Yeah Brexit and Trump and global warming caused it.

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Mavric 09 November 2024 at 15:27+ 19032

So know company decleard bankrupt that means merc need find new turbo company for 2025 season

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J41L 09 November 2024 at 16:16+ 23193

I don't think it should be an issue for MB if this is true. But perhaps they will not get their turbo for the same cost.

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Mavric 09 November 2024 at 16:31+ 19032

Ye but if file for going bust you can only trade for so long and then the resevers see what can be sold off to pay other pepole money .you have to file going bust at company house in uk .and if you rember toto was say the 2026 enging was going be the best .so merc suply other teams with engines this could be knock on affect for merc.now nother thing do other teams use this company as well

Bert dr 09 November 2024 at 16:44+ 2829

Arrangements have been made by the German team, therefore, they will receive the necessary hardware for the 2025 season.

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Mavric 09 November 2024 at 16:47+ 19032

Ye but i cant rember how long it take for compeny to do all the meetings they have to have when go bust.they could have agrement but im not sure on this when company gose bust they cant sale any products they can only finsh what work needs be done and pay for

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Doink 09 November 2024 at 16:54+ 10768

......'Arrangements have been made by the German team, therefore, they will receive the necessary hardware for the 2025 season'....... Apparently 2025 won't be a problem, Mercedes has probably done a deal to buy the job lot

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J41L 09 November 2024 at 17:14+ 23193

I don't think it will make sense to start to build their own turbos. They simply will find a new supplier like Garett, Borg Warner and the likes. Just how they do with their street cars division.

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Herr Flick 09 November 2024 at 19:05+ 6017

I looked up Reaction Engines and there's no mention of them supplying MB it's mostly aerospace related stuff and mentions a few distinguished ( American ) companies but MB isn't one of them ?!! I would have thought that was worth a mention though !!

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Mavric 09 November 2024 at 20:03+ 19032

When they first said about it was a company in oxfdshire herr flick

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Mavric 09 November 2024 at 23:09+ 19032

Herr flick there a bit about the company when i looked at firm it was on sky news web page .they had 208 staff and october lay 173 staff off they filed bankrupsy in october .

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Herr Flick 10 November 2024 at 08:25+ 6017

Morning Mav, yes I saw they were based in Oxfordshire but the only link I could see was that they were close to Brackley, tbh, I'm not doubting it I was just surprised that of the several companies mentioned as their customers there was no mention of MB !!

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Mavric 10 November 2024 at 23:04+ 19032

Ye it is good thought with it but then when have high altude races merc some tine strugl .but now merc got to find some one els for turbos .i dont know who rbr turbos from .and what ones they use in 2026

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Herr Flick 10 November 2024 at 19:51+ 6017

Good last point there Mav, I wonder if the T/C they designed/manufactured was a sort of prototype because it operates in a different way to the norm, then as soon as MB realised it's advantage they locked Reaction Engines into a sole contractor ?!! I don't know though it's just a thought ?

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Mavric 10 November 2024 at 10:37+ 19032

Ye some times when looking up things you have to scroll down onto diffrent pages .the company filed bankrupt october this year and last night they had pice about honer and merc turbo.that they are in need find a nother supplier .now what i dont under stand why not all teams use that company like rbr because close to them as well

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Herr Flick 10 November 2024 at 10:04+ 6017

Thanx Mav, that's more info than I found ?

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Mavric 10 November 2024 at 08:57+ 19032

What i found was they did water cooling parts and also for merc f1 team thats what said when looked up it was on sky news web page