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Why Mercedes bets on electric, but stays in F1

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Formula 1 seems to have little to complain about at the start of 2022. Grands Prix usually have many fans in their stands, more and more venues are requesting to enter the calendar (including Germany) and big brands in the automotive world are weighing a possible entry into the category.

This last statement, of course, refers to Audi and Porsche , two VW Group brands that want to compete alongside the current F1 teams from 2026, the season scheduled for the entry into force of the new power unit regulations.

With another German superpower in the competition, Mercedes is almost forced to constantly respond to rumors of a possible exit from Formula 1.

Despite the disappointment of these first races under the new 2022 regulations, Mercedes say they have plenty of reasons to stay in F1 for a long time.

Daimler CEO Ola Kallenius told The Financial Times that F1 also remains part of its long-term future. In concrete terms, this means that those from Brackley plan to continue competing under the new engine rules (2026) and the new Agreement of Concord (which will be signed at the end of 2025).

However, Mercedes wants to make a big electrification move starting in 2030 or so, at which point the brand hopes to start selling electric cars only. Therefore, staying in Formula E seems logical, however, Mercedes does not think the same and prefers to keep competing in F1.

“Under Formula 1’s new power unit regulations, the electrical part of the engine will also be much more important,” Kallenius explained. “Also, F1 has a very clear goal of being CO2 neutral .” In other words, his participation in F1 is not out of step with said electrification movement.

In addition to that, Formula 1 will also bet on fully sustainable fuels from 2026. According to Mercedes, this would work in a complementary way, since they could continue to manufacture street cars with a ‘clean’ combustion engine.

“In the next regulation, despite the fact that the electrical part of the engine will be much more important, we will still have a combustion engine that will be used as a laboratory for CO2-neutral fuels. Aviation and many other sectors will need it.”

Beyond the sport itself, commerce also plays an important role. After all, Mercedes has to sell cars and knows that Formula 1 most of the time works better than Formula E in this regard.

“Formula 1 is growing significantly, especially among a younger target group. The Netflix series, Drive to Survive , has changed the vision of the youngest. In any case, we are happy to be part of this show, which has a great future ahead.”

Despite his electric plans, Kallenius explained why he thinks Formula 1 could not live on electric power alone at the moment: “We are not yet at a point where we can offer a race like Abu Dhabi just power from electrical parts”.

“A category like this has to offer a great show and the technology we have at the moment is not ready for that in terms of battery. I think the way F1 needs to go is to become CO2 neutral,” concluded the CEO. of Daimler, Mercedes .

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