Why it makes sense for Mercedes to give long contracts despite adversity

Mercedes have secured the key staff members. Toto Wolff, Lewis Hamilton, George Russell and now technical director James Allison. All have signed long-term contracts. Mercedes-Benz express calm and confidence in this formation. Now it is up to these men to repay that confidence.

With a new contract for James Allison, all key positions at Mercedes have now been filled. You could call it remarkable that contracts are being extended right now. After all, you cannot argue that Mercedes are doing well. They did not win a Grand Prix in 2023 for the first time in years. Still, this is the best decision Mercedes could make.

Earlier in the week, GPblog.com drew comparisons with the Dutch Football Club SC Heerenveen. Their fans were asking for their coach to be removed. The chairman at the time actually opted for a new contract. No more whining; this is my coach. Mercedes seem to be sending that same signal now. First, with a new contract for Wolff, and now with Allison's extension.

Why Mercedes are under pressure

There is some pressure on Mercedes. After eight constructors' world titles in a row, the team has missed the boat with the new regulations in 2022. Internally, there will certainly be critical observations, and it really won't be a party, but externally, Mercedes want to project unity.

It is clever that Mercedes are keeping a cool head precisely at this stage. It is no secret that there is a feud between the FIA and Mercedes. Mercedes are dissatisfied with the course of events surrounding the investigation into Susie Wolff. At the same time, the FIA are unhappy with statements made by Toto Wolff behind the scenes and on camera.

Besides the FIA case, Wolff faced many harsh questions in 2023. Was he still the right team boss? Was he not too critical of his staff? Mercedes listened to that outside criticism and responded with a clear signal: we will return to the top with these people.

Why it makes sense for Mercedes contracts to be renewed

And that is not a crazy thought. Under Wolff's leadership, Mercedes won eight world titles in the constructors' and seven in the drivers' championship. Although the foundations were laid by Ross Brawn, it is commendable that Wolff managed to challenge his team to come up with something new every year.

James Allison also deserves a second chance. The Brit stepped in as technical director at Mercedes in 2017. The titles in 2017 cannot be entirely credited to him, but those in 2018, 2019, 2020 and 2021 (only the constructors' title) can.

Allison stepped down from the F1 team in mid-2021. He still remained involved with the team as chief technical officer, but no longer on a day-to-day basis. Mike Elliott became his replacement but missed the mark with the 2022 car concept. In 2023, Wolff decided to have the two swap positions, after which Elliott decided to leave Mercedes altogether.

With Allison back at the helm, Mercedes again have a single point person for car development. Clearly, things need to improve, but every team, team boss or technical director goes through downturns occasionally. To Mercedes-Benz's credit, they put their trust in the people who have been so successful, just at a time when they are not so successful right now. It is now up to Wolff, Allison, Hamilton and Russell to pay off that trust and close the gap with Red Bull Racing.