Mercedes and Renault have both moved to deny the recent exit rumours that suggested that the German and the French manufacturer could leave Formula 1 due to the financial challenges presented by the coronavirus outbreak.

As a result of the COVID-19 pandemic, Renault has announced nearly 15,000 job losses in the wake of plummeting car sales. With McLaren joining forces with Mercedes as of 2021, Renault will be left without a costumer team to supply with its power units.

The situation prompted rumours to circle, suggesting that the French manufacturer could turn its back on Formula 1 after reviewing its financial plans for the foreseeable future.

The French manufacturer has revealed that the upcoming changes to F1’s spening cap will help to stay in Formula 1 despite the financial challenges amid the coronavirus outbreak. Renault has indicated that the reduction of the revolutionary new budget cap from $175m to $145m for 2021 would be a big help.

Renault’s Chief Executive Officer Clotilde Delbos has revealed in an online meeting with the media that the French company intends to stay committed to Formula 1 despite the financial difficulties presented by the coronavirus outbreak.

“We have said publicly, and we confirm, that we intend to stay in Formula 1.”

“Actually the news about new regulations, a new cap in terms of investment, is very good for us because we had less investment in this area than some of our competitors, who were spending a lot of money. So F1, we’re here and we’ll stay,” she said.

Mercedes plans future with Toto Wolff

Despite reports suggesting that Mercedes team boss Toto Wolff would step down from his operational role, the German manufacturer insists that its future in F1 with the Austrian would not end in the near future.

The rumour was fuelled by recent happenings around Toto Wolff, Lawrence Stroll and Aston Martin. After buying a 16.6 per cent stake in the British company, Lawrence Stroll has announced that his F1 team, the Racing Point outfit would be rebranded as Aston Martin in 2021. Wolff has recently made an investment in Aston Martin Lagonda, purchasing a 0.95 per cent stake.

This week, the Gaydon-based company has announced the departure of his CEO Andy Palmer whose role will be taken over by ex-AMG boss, Tobias Moers. It has been suggested that Daimler planned to sell the Mercedes F1 team to Racing Point and Aston Martin owner Stroll.

Daimler has issued a statament on Friday, confirming that the company’s plan is to continue its F1 involvement with Toto Wolff.

“Speculation regarding a potential withdrawal from Formula 1 continues to be unfounded and irresponsible. The sport has taken the right measures to address the consequences of the Covid-19 pandemic and its future financial sustainability, and we welcome these steps.”

“It is our clear intention to continue competing in Formula 1 as a Mercedes-Benz works team in the years to come, and to do so with our managing partner Toto Wolff,” the statement read.