[ 2020 ] AMG Mercedes F1 Team - Mercedes

[Big Tea]

Motorsport.com scuttled Jordan’s claims today.

Ineos may buy some shares, but they’re not going for majority ownership.

Merc makes billions in advertising/business goodwill from their F1 involvement.

https://www.motorsport.com/f1/news/ineo ... n/4874139/

Such a dramatic exit for Mercedes is understood to be unlikely however, with the German car manufacturer having been clear in recent months that it is fully committed to remaining in F1 as a works team for many years to come.

However, what cannot be ruled out is Ineos ramping up its involvement in the outfit by buying a shareholding on the back of it becoming a major sponsor and technical partner earlier this year.

After reading that article, in particular -

Ownership of the Brackley team in part or in full by INEOS would make for an interesting dynamic regarding Lewis Hamilton.

The petrochemical company isn't exactly perceived in the UK as a leading environment advocate, having been embroiled recently in compliance issues with EU pollution rules.

Given Hamilton's environmental activism, it's hard to imagine the F1 star remaining with the Mercedes team if INEOS did indeed take over the Black Arrow squad.


I was wondering if it is worth starting a new thread on it?

Edit, I did

[foxmulder_ms]

Guys, NO POLITICS. Thank you.
Yes, I know it is Hamilton. No politics for now, please.

Cannot handle a picture of Hamilton with some message? Good reason not to ever visit this page, thanks.

[zibby43]

Motorsport.com scuttled Jordan’s claims today.

Ineos may buy some shares, but they’re not going for majority ownership.

Merc makes billions in advertising/business goodwill from their F1 involvement.

https://www.motorsport.com/f1/news/ineo ... n/4874139/

Such a dramatic exit for Mercedes is understood to be unlikely however, with the German car manufacturer having been clear in recent months that it is fully committed to remaining in F1 as a works team for many years to come.

However, what cannot be ruled out is Ineos ramping up its involvement in the outfit by buying a shareholding on the back of it becoming a major sponsor and technical partner earlier this year.

After reading that article, in particular -

Ownership of the Brackley team in part or in full by INEOS would make for an interesting dynamic regarding Lewis Hamilton.

The petrochemical company isn't exactly perceived in the UK as a leading environment advocate, having been embroiled recently in compliance issues with EU pollution rules.

Given Hamilton's environmental activism, it's hard to imagine the F1 star remaining with the Mercedes team if INEOS did indeed take over the Black Arrow squad.


I was wondering if it is worth starting a new thread on it?

Edit, I did

Definitely don't think it will be in full. Mercedes would stand to lose money.

A greater involvement through increased investment? That's a win for everyone.

Wolff:

“You know people pick up bits and pieces and construct the story around it,” he said.

“We have a magnificent relationship with INEOS, we work together on several high-tech projects around America's Cup and the cycling team.

“And the partnership is very complimentary. We have the same ambitions with our sports teams. And that's why INEOS is a partner of ours.

“Beyond that everything is just speculation. Daimler has no intent in giving up the team, and INEOS has no interest in buying a majority of the team and calling it like this.

"And I have no reason to depart from my shareholding. So, plenty of things that are made up.”

https://www.motorsport.com/f1/news/wolf ... n=widget-2

As an aside, Crowdstrike is already a sponsor, and they don't have a squeaky clean history either.

Point being - every corporation in the world has a checkered past. And every team is in bed with multiple. Whether it's something as benign as insurance companies hit with lawsuits and punitive damages for failing to pay out valid policy claims, or Mission Winnow for Ferrari being a backdoor tobacco sponsorship.

[63l8qrrfy6]

I think there are some issues with the team though. Daimler are about to fork out 1.5bn usd for the emissions scandal plus another few hundred million for further settlement fees.

During the covid lockdown, both Brixworth and Brackley factories have let go of most contractors which make up a significant proportion of the workforce. They now now have a strict recruitment freeze and are only hiring externally to fill in the most critical roles.

Something is not quite right.

[Jolle]

I think there are some issues with the team though. Daimler are about to fork out 1.5bn usd for the emissions scandal plus another few hundred million for further settlement fees.

During the covid lockdown, both Brixworth and Brackley factories have let go of most contractors which make up a significant proportion of the workforce. They now now have a strict recruitment freeze and are only hiring externally to fill in the most critical roles.

Something is not quite right.

Don’t forget, budget cap and engine freeze are coming. The engineering team has to downsize significantly.

[Moore77]

I think there are some issues with the team though. Daimler are about to fork out 1.5bn usd for the emissions scandal plus another few hundred million for further settlement fees.

During the covid lockdown, both Brixworth and Brackley factories have let go of most contractors which make up a significant proportion of the workforce. They now now have a strict recruitment freeze and are only hiring externally to fill in the most critical roles.

Something is not quite right.

That's the situation across most industries. Revenues are down and the companies can't manage operational expenses to the same degree as they used to under regular revenue/investment atmosphere. Projects that would be under execution in normal investment atmosphere, are either shelved or postponed to a later stage (mostly next year). By letting go of contractors and freezing the recruitment, organizations cut down on expenses. Cash rich companies are not being very aggressive in these aspects, but companies that have tighter budgets, have no other choice. In some organizations, employees are taking pay cuts, benefits removed and in some places, working hours are also cut to ensure lower pay. Different market segments expect a bounce back at different stages and Mercedes is no different.

As for penalty, a company that has over $200 billion in revenues, $1.2 billion in penalty payment isn't much. Besides, every large corporation will always plan for undesired expenses in the form penalties, legal shelling, compensations etc., That's normal day job.

[Just_a_fan]

Let's remember that Mercedes GP costs Daimler less than $100m a year. Compared to their global advertising budget, I bet that's peanuts.

[SiLo]

Let's remember that Mercedes GP costs Daimler less than $100m a year. Compared to their global advertising budget, I bet that's peanuts.

It's their cheapest advertising campaign by a country mile.

[mkay]

I think there are some issues with the team though. Daimler are about to fork out 1.5bn usd for the emissions scandal plus another few hundred million for further settlement fees.

During the covid lockdown, both Brixworth and Brackley factories have let go of most contractors which make up a significant proportion of the workforce. They now now have a strict recruitment freeze and are only hiring externally to fill in the most critical roles.

Something is not quite right.

Daimler had already provisioned for such fine in their 2019 accounts, and has in excess of EUR20bn in liquidity. The share price has nearly doubled since March.

[Morteza]

[PinkFloydPulse]

I think there are some issues with the team though. Daimler are about to fork out 1.5bn usd for the emissions scandal plus another few hundred million for further settlement fees.

During the covid lockdown, both Brixworth and Brackley factories have let go of most contractors which make up a significant proportion of the workforce. They now now have a strict recruitment freeze and are only hiring externally to fill in the most critical roles.

Something is not quite right.

Don’t forget, budget cap and engine freeze are coming. The engineering team has to downsize significantly.

They also plan/or already have to cut 20k workers in Germany. The plan was set in motion last year and COVID only expedited things.
Here in Sindelfingen where they have their main factory, everything went kinda calm lately... The cars are coming of the production line but it's a strange feeling...

[Jambier]

Let's remember that Mercedes GP costs Daimler less than $100m a year. Compared to their global advertising budget, I bet that's peanuts.

And with budget cap, and maybe more involvement and money from INEOS the F1 team could be basically "free" for Mercedes and giving them a lot of visibility.

So no way they will leave or anything, you have to be crazy to do that with such a great team, wins, title, visibility, and all that for free

[proteus]

I think there are some issues with the team though. Daimler are about to fork out 1.5bn usd for the emissions scandal plus another few hundred million for further settlement fees.

During the covid lockdown, both Brixworth and Brackley factories have let go of most contractors which make up a significant proportion of the workforce. They now now have a strict recruitment freeze and are only hiring externally to fill in the most critical roles.

Something is not quite right.

Don’t forget, budget cap and engine freeze are coming. The engineering team has to downsize significantly.

They also plan/or already have to cut 20k workers in Germany. The plan was set in motion last year and COVID only expedited things.
Here in Sindelfingen where they have their main factory, everything went kinda calm lately... The cars are coming of the production line but it's a strange feeling...

It scares me when i am looking how fast automation progresses and i wonder what will happen with all of surpluss people. We cant be all vloggers and computer programmers.

[Jolle]

Don’t forget, budget cap and engine freeze are coming. The engineering team has to downsize significantly.

They also plan/or already have to cut 20k workers in Germany. The plan was set in motion last year and COVID only expedited things.
Here in Sindelfingen where they have their main factory, everything went kinda calm lately... The cars are coming of the production line but it's a strange feeling...

It scares me when i am looking how fast automation progresses and i wonder what will happen with all of surpluss people. We cant be all vloggers and computer programmers.

That depends on what side of the political spectrum you think. It’s either “tough luck” or “universal basic income”.

Either way, if this trend in low human involvement production, continues, they still need consumers that buy the stuff. Mercedes can’t sell cars is everybody is sitting incomeless at home.

[Moore77]

Don’t forget, budget cap and engine freeze are coming. The engineering team has to downsize significantly.

They also plan/or already have to cut 20k workers in Germany. The plan was set in motion last year and COVID only expedited things.
Here in Sindelfingen where they have their main factory, everything went kinda calm lately... The cars are coming of the production line but it's a strange feeling...

It scares me when i am looking how fast automation progresses and i wonder what will happen with all of surpluss people. We cant be all vloggers and computer programmers.

Ever since the technology has been driving the world around us, nature of human workforce is constantly changing. That wheel of technology evolution is going to constantly roll. More of the automation that humans try to bring in, the redundant human workforce would be getting leveraged elsewhere in the system. So, the net result is, people do have jobs of all types and not just vloggers or computer programmers. Corporate greed rears the ugly head when the economic climate becomes unfriendly, which we are witnessing now, once again. But that isn't anything new either and that would continue to happen.