Formula 1: Mercedes could end exit rumors, but uncertainty looms

Mercedes could end rumors that they will be leaving Formula 1 as a constructor following the 2020 season, but uncertainty still looms.

Mercedes have dominated Formula 1 since the V6 turbo hybrid era began in the 2014 season, becoming the second team in the history of the sport to win six consecutive constructor championships and the first to win six consecutive driver championships. They have won 89 of the 121 races that have been contested during these six years.

Not surprisingly, they are the early championship favorites in the 2020 season as well, a season in which a seventh consecutive constructor championship would make them the first in the sport’s history to pull off that feat.

But beyond the conclusion of the 2020 season, Mercedes are not committed to competing in the sport as a constructor, despite having deals lined up to continue providing engines to Williams and Racing Point and to begin providing engines to McLaren in 2021.

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Rumors have emerged that the Silver Arrows may opt to leave the sport as a constructor following the 2020 season because they have already shown the dominant force they are, and there is a chance that this dominance would not continue in 2021.

Liberty Media are slated to introduce a new set of rules and regulations ahead of the 2021 season with the aim of making the sport more competitive from top to bottom. New cars are slated to be introduced, making it easier to follow and pass, as is a $175 million budget cap.

While there are six teams that currently outspend this budget cap, Mercedes are one of only three teams that are slated to actually need to reduce their spending, as three others would still make it under the cap because of everything that is exempt from it, including driver salaries.

Mercedes joined Formula E ahead of the 2019-2020 season, and they are already competitive in it, notably fielding an entry for points leader and ex-Formula 1 driver Stoffel Vandoorne through the 14-race season’s first three events.

With team principal and CEO Toto Wolff having recently stated that there is “nothing more to prove” for the team in Formula 1, what reason do they have to continue investing hundreds of millions of dollars in Formula 1 and not to completely shift their focus to the relatively new FIA-sanctioned all-electric series that is quickly growing in worldwide popularity?

But at the same time, what reason would they have to leave the sport, having become so dominant?

It is worth noting that Mercedes have not yet signed the new Concorde Agreement, a contract between the FIA, the teams and the Formula 1 Group that dictates the terms by which the teams compete as well as how the television revenues and prize money is divided among them.

But according to Motorsport Italy, it is looking increasingly likely that Mercedes will put an end to these rumors and commit to a future in Formula 1 not just through the 2021 season but through the next several years, presumably 2025, which is when their new deal with Williams ends.

According to this source, the team’s “presence in the World Championship costs very little as prizes, sponsors and [the upcoming] budget caps reduces the economic participation required from Daimler. In addition the combination of hybrid series production and the current technical base of Formula 1 is perfect for marketing.”

With that being said, there is still a bit of uncertainty surrounding the situation, as can be expected with nothing set in stone. It could be a few months before they sign the new Concorde Agreement, and it could still very well come down to whether or not their dominant form continues in the 2020 season.

Will Mercedes be back in Formula 1 for another several seasons amid reports that they could commit to a long-term future, or will they end up backing out and serving only as an engine supplier once the 2020 season comes to an end?