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Wolff: You can’t expect manufacturers to be charitable

Toto Wolff says it is unfeasible to expect engine manufacturers to be 'charitable' when pricing its power units to customers.
Toto Wolff says it is unfeasible to expect engine manufacturers to be 'charitable' when pricing its power units to customers, saying it is reasonable to expect teams to contribute to its development costs.

After its latest attempts to cut costs were vetoed by Ferrari, the FIA and FOM is forging ahead with proposals to develop a standard customer engine to be made available to all teams from 2017.

The twin-turbo engine will feature a simpler specification than that of the current generation V6 Hybrid power units and priced substantially cheaper, with the FIA confident it can equalise the regulations to ensure a parity in competitiveness.

Though the FIA has repeatedly expressed its dissatisfaction at the vastly increased cost of buying power units since they were introduced in 2014 – and admitting it should have imposed a price cap from the outset -, engine manufacturers have justified the prices as being in line with the complexity of their development.

However, while customers have argued that they shouldn't be penalised for such costs, Wolff says it is unreasonable to suggest they shouldn't play their part if they are expecting the best product available to them.

“Partners expect to have the most competitive engine and in order to have the most competitive engine, because its a competitive environment, we spend very substantial amounts in developing those engines. Nobody has ever asked us how we plan to recover those or if someone can contribute to help us to recover.

“You can argue whether the marketing benefit of the development spend is right or wrong but as a matter of fact we live in a world where we are all facing a commercial reality and that commercial reality is that we need to be as efficient as possible and try to recover the best possible amount.

Despite this, Wolff says Mercedes remains committed to establishing a direction for the good of the sport, even if it dents its own commercial obligations.

“I think you cannot expect any stakeholder in the sport to have a charitable approach, but you have to just - although optimising your own situation - find a compromise for the sake of the sport.”


Tagged as: toto wolff

Related Pictures

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20.09.2015 - Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director and Cyril Abiteboul (FRA) Renault Sport F1 Managing Director
27.11.2016 - Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director and Nikki Lauda (AU), Mercedes
27.11.2016 - Mercedes group photo, Lewis Hamilton (GBR) Mercedes AMG F1 W07 Hybrid, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director, Paddy Lowe (GBR) Mercedes AMG F1 Executive Director, lauda and Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid
27.11.2016 - Mercedes group photo, Lewis Hamilton (GBR) Mercedes AMG F1 W07 Hybrid, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director, Paddy Lowe (GBR) Mercedes AMG F1 Executive Director, lauda and Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid
26.11.2016 - Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director and Mansour Ojeh, Manseur Ojeh, McLaren shareholder
26.11.2016 - Free Practice 3, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director and Mansour Ojeh, Manseur Ojeh, McLaren shareholder
26.11.2016 - Nikki Lauda (AU), Mercedes and Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
26.11.2016 - Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
26.11.2016 - Nikki Lauda (AU), Mercedes and Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
26.11.2016 - Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
25.11.2016 - Press conference, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
25.11.2016 - Press conference, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
25.11.2016 - Free Practice 2, Press conference, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
25.11.2016 - Free Practice 2, Maurizio Arrivabene (ITA) Ferrari Team Principal and Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
24.11.2016 - Lewis Hamilton (GBR) Mercedes AMG F1 W07 Hybrid, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director and Nico Rosberg (GER) Mercedes AMG F1 W07 Hybrid
24.11.2016 - Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
12.11.2016 - Qualifying, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director
12.11.2016 - Qualifying, Toto Wolff (GER) Mercedes AMG F1 Shareholder and Executive Director

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akeizm

November 05, 2015 9:30 AM

So if a customer pays full price for an engine and it's to help cover development costs, then those customers should get access to all the newest specs and not be forced to use older specs.

Taipan

November 05, 2015 11:11 AM

If Merc don't fancy the idea of losing money by supplying other teams there is a very obvious way of balancing the books.... get rid of Lulu and Nico and replace them with a couple of GP2 drivers, that would save them 30 or 40m a year and the results would be just the same.



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