Staying in Formula 1: What does this mean for Mercedes?

With all of the regulation changes set to take force in 2021, it was uncertain whether Mercedes would be staying in Formula 1 for a long time. While the team's long-term future is still uncertain, team principal Toto Wolff confirmed the Silver Arrows will stay in the sport next year. What does this mean for Mercedes?

One more year

Whether Mercedes will be staying in F1 beyond 2021 is unknown, as Wolff did not disclose this in his interview with Auto Motor und Sport. It's unlikely the German works team will just stick to the one year, however, with the amount of investment required for the new car under the new regulations. 

In 2021, every team will basically have to build an entirely new car while also working under a budget cap and with several different regulations. To justify the massive cost, it might be best for the team to remain active in F1 for more years.

Besides; their tremendous success is great advertising for the brand!

See what happens

One of the reasons why Wolff didn't state his team is committing beyond 2021 could be performance-related. With every major change in the regulations, another team tends to come out as the new dominant force. Should Mercedes' performance drop off significantly for one reason or another in 2021, they could opt to pull the plug on the F1 project.

By keeping their future uncertain beyond 2021, the Silver Arrows allow themselves the freedom to act accordingly if they're unhappy with proceedings next year. Besides, Daimler will have their own ideas about the Formula 1 team.

Cut costs

Daimler CEO Ola Källenius has already communicated costs will be cut at the company. It goes without saying Formula 1 is a very expensive project, particularly for a team the size of Mercedes. While the F1 team actually makes a net profit, Daimler could still be ordering the people in Brackley to start cutting down on expenses.

Another noteworthy fact is Mercedes want to invest more in electric cars. They launched their works team in Formula E this season already with drivers Nyck de Vries and Stoffel Vandoorne as the streetcar company want to become more eco-friendly. Although the F1 team has won every championship available since 2014, the future of the company's racing ventures could lie in FE rather than F1.

While Mercedes' investment in F1 has certainly been successful so far, it remains to be seen whether they can keep that success up beyond 2021.