F1 Talk: Why Mercedes will not leave this year

Mercedes have still not signed up to race in the 2021 Formula 1 season so the rumours of them pulling out at the end of the year continue.

Meetings have taken place earlier this year but no news has come from it and the ongoing coronavirus pandemic means that the economy and the car industry is going to struggle like it never has before.

However, the decision to delay the new rules and regulations until 2022 will almost certainly mean Mercedes stays in F1 for at least another year.

The cars that the teams have this year will be carried over into next year and with Mercedes seemingly having the fastest car in pre-season testing, it makes sense to stick around for another 12 months and try and add to their six consecutive drivers’ and constructors’ championships.

Mercedes have exhausted their marketing potential and the millions of pounds they have put into F1 has been more than worth it.

In 2012 their advertising value was $70 million, today its around $4.5 billion. An incredible growth over eight years. Their phenomenal success has changed the brand identity and Lewis Hamilton has been a key part of that, with Hamilton currently being one of the most marketable sportsman in the world.

Since 2021 is only going to see an evolution of this year’s cars, the question is whether Mercedes will decide to pull the plug at the end of next season.

From an economic perspective it does make sense, from a sporting perspective too they have broken records and set a new standard for the sport.

The new budget cap which will be set at $145M for 2021, reduced to $140M for 2022 and $135M foe 2023-2025.

There will also be restrictions on engine development from 2021 with the current hybrid power units inevitably coming to the peak of what they can do.

Mercedes may look to Formula E to develop and innovate in that championship if they are now going to be restricted in F1.

It goes without saying that electric power is the future whereas hybrid has failed to really get going in the car industry and has not boomed as much as people thought 10 years ago.

The length of Hamilton’s next contract, which runs out at the end of this year, will tell us a lot if Mercedes have not announced what their future in F1 is.

Without doubt, if Mercedes were to pull out someone would buy the team and the current engineers and team members will remain – similar to the Brawn situation in 2009 when Honda left F1.

It will certainly be fascinating as to what happens. Renault could be on the way out, will Mercedes choose to follow? Times are changing and some massive moves might be on the way in the world of F1 over the next 12 months.