“The financial engineers track the value of every single process”: Mercedes uses new approach to stay within the budget cap
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Mercedes W-13
The budget cap that was put in place by the FIA ahead of the current Formula 1 2022 season has seen massive effects on all the teams. The financial regulations are not new to the sport, as they were already implemented last year, but the FIA lowered the cost cap even further for 2022–a change that the teams are finding really difficult to adapt to. The rules have made it especially hard for the three top teams which usually have a big budget at their disposal–Mercedes, Ferrari, and Red Bull.
Now, amongst the big 3 squads, Mercedes have decided to undertake a new method to keep their expenditure in check, so that they do not cross the budget barrier in any way. The new initiative taken by Mercedes to keep a watch over their pocket pinch is–appointing “financial engineers” who would look after the team’s monetary processes and make sure they do not overspend, so as to avoid any penalties.
The announcement about the new posts in the team were made by Mercedes Team Principal Toto Wolff. According to the Austrian, the decision to appoint financial engineers was a unanimous one by the executives of the Stuttgart-based team, and they believes these personnel will prevent Mercedes from incurring any unwanted penalties for overexpenditure.
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Toto Wolff elaborates on appointing financial engineers to watch over team expenditure
With the rising market values amidst the inflation and the demand for developing newer technology, Mercedes and the other team are struggling to stay within the budget cap that has been suggested by the FIA. Hence, Toto Wolff said, “We have a tracker with financial engineers that track every single process and every single part that comes into the car. So when we take things out of the truck, the financial engineer notes, the value. When you utilise it’s being counted for.”
As of now, Mercedes has displayed some breakthrough performances in the last few races before the summer break began in F1. With nine races to go and thirty points to make up for, Mercedes have to be flawless in their approach before going into the second half of the season, so that they can catch up with Ferrari and take the second place in the standings.
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Riddhi Mondal
(1821 Articles Published)