Formula 1: Mercedes’ future clearer after ‘not true’ rumors shot down

Mercedes appear set to stay in Formula 1 as a constructor past the 2020 season amid rumors that they would only supply engines from 2021.

A report that came out last week stated that on Wednesday, February 12, Mercedes are set to determine their future in Formula 1 as a constructor.

This report came amid mounting speculation that the Brackley-based team will not continue operating as a constructor in the sport beyond the 2020 season with Liberty Media slated to introduce their new rules and regulations ahead of the 2021 campaign, including a $175 million budget cap, to make the series more competitive.

Mercedes have dominated Formula 1 since the current V6 turbo hybrid era began back in the 2014 season, winning 89 of the 121 races as well as all six constructor and driver world championships that have been decided since then.

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The basis of this idea is effectively the fact that as six-time (possibly seven-time in a year) defending champions, they really have nothing left to prove and that they would have far more to lose, both from a financial standpoint and a competitive standpoint, than they would gain by sticking around for the introduction of these new rules and regulations.

Additionally, they just entered the rapidly growing yet much cheaper FIA-sanctioned all-electric Formula E series ahead of the 2019-2020 season, and they are already competitive; Stoffel Vandoorne, a former McLaren Formula 1 driver, leads the driver standings for the team with two podium finishes through three of the season’s 13 races.

Mercedes have also notably yet to sign the new Concorde Agreement, a contract between the FIA, the sport’s teams and the Formula 1 Group which dictates the terms by which the teams compete in addition to how the television revenues and prize money is divided among them.

But according to a team source, the report about this meeting next Wednesday is false. Daimler chief executive Ola Kaellenius also stated that reports of Mercedes planning to leave Formula 1 are “not true”. Even from a financial standpoint, this makes sense because of the impending budget cap.

This revelation comes amid more speculation about the future of six-time world champion Lewis Hamilton with the team. His contract, which he extended by two years in July of 2018, expires at the end of the 2020 season, and there have been rumors about pretty much every possible scenario, including a contract extension, a switch to Ferrari and retirement.

Mercedes already have engine deals lined up through the 2025 season. They have a deal to continue supplying engines to Williams through that time, and they are set to begin supplying engines to McLaren for the first time since the 2014 season next year. They also currently supply engines to Racing Point, which are slated to become Aston Martin ahead of the 2021 season.

Will Mercedes continue their tenure in Formula 1 as a constructor beyond the conclusion of the 2020 season, or will the upcoming campaign be their final year? It is looking more and more likely that they will be back not only in 2021 before for many years after that.