Mercedes set to buy into Brawn GP

[John S]

At first I wondered how the FIA would look upon Merc owning part of Brawn alongside McLaren, then I woke up and remembered the RBR and STR ownership situation. Good on you Merc and Brawn. 

By Jonathan Noble, Today, Autosport

Brawn GP's Formula 1 future is poised for a major boost, with Mercedes-Benz close to a deal to take equity in the team.

With the world championship leaders already having secured sponsorship funding for the next few years, as revealed by AUTOSPORT last month, the team's outlook now looks even better following discussions with the German car manufacturer.

Reports first emerged about the plans this morning in The Daily Telegraph, and sources have confirmed to AUTOSPORT that talks are at an advanced stage for the car company to take a shareholding in the team.

It comes on the back of Mercedes-Benz's increased profile as a customer engine supplier over the past season - with the team set to provide power-units to McLaren, Force India, Brawn and, perhaps, Red Bull Racing in 2010.

The move is not, however, an attempt by Mercedes-Benz to move away from its long-standing commitment to partner McLaren - and it is instead believed to be part of the car manufacturer's attempt to increase its presence in F1.

A McLaren spokesman told AUTOSPORT that the team had no qualms about Mercedes-Benz's plans for expanding its involvement with its rivals in the sport.

"Mercedes-Benz's engine supply contract with McLaren is a very long-standing one - it's in its 15th consecutive year, in fact - and it will continue to run for many years to come," said the spokesman.

"However, we're supportive of our partner's plans regarding engine supply of other teams in Formula 1, and we were delighted earlier this year that a Mercedes-Benz engine supply deal was able to be done with Brawn, thereby saving that team from likely extinction.

"Force India, too, has blossomed as a result of its engine supply/engineering consultancy collaboration with Mercedes-Benz and McLaren - as Giancarlo Fisichella's impressive second place in the recent Belgian Grand Prix showed all too clearly.

"Both McLaren and Mercedes-Benz remain extremely satisfied with our Formula 1 collaboration, which has netted two drivers' world championships and one constructors' world championship as well as dozens of grand prix victories.

"As ever, we'll be aiming to add to that win tally together at this weekend's Italian Grand Prix - although we never under-estimate our opposition and the competition will undoubtedly be tough."

Mercedes-Benz itself denied that the plan was for a full-blown buyout of Brawn, but did not rule out an equity-type deal.

"It's our policy not to comment on rumours and we want to point out that we have longstanding contracts with McLaren," a spokesperson for the company told The Daily Telegraph.

Mercedes-Benz is poised to confirm its engine plans for 2010 at the Italian Grand Prix, although there is fresh uncertainty now surrounding whether or not Red Bull Racing will make the switch from Renault to Mercedes-Benz.

Although the deal had appeared to be all but done in recent weeks, sources suggest that the contract has not yet been signed - and it is not impossible that the team could actually stick with its current partner for another year.

Williams is looking at changing its engine supply deal for next year, having asked Toyota to be released from its contract, and had been expected to switch to Renault. However, there remains a chance the Grove-based outfit could be in the running for a Mercedes-Benz deal if Red Bull Racing opts not to take it.

[Scott]

I hope Merc stay with Mclaren as their 'works' team.  Providing engines to others is logical, but to have an actual stake in another team is a conflict of interest as a technical partner.  STR and RBR are owned by a soft drink company, not an F1 engine manufacturer.  It could make Merc too much of a bully in F1 with all the extra sway that being an investor brings along.

[Jericoke]

I wonder if this might be the easiest way to get around 'customer' engine supply rules.  Just because Max allowed an exemption, doesn't mean the future regime will.

This way they're supplying two works teams, and two customer teams.

Alternatively, Bernie might be applying a little pressure to make sure the smaller teams are stable.

Just a thought.

[cosworth151]

It sounds a bit scary to me. It would be way too easy for Brawn to become little more than the McLaren "B" team.

[Dare]

I wonder what will happen if Brawns doesn't live
up to this seasons results?

Seems like Ferrari may have the Brawn advantage next year
as they've stopped all work on this years car

[Jericoke]

I wonder what will happen if Brawns doesn't live
up to this seasons results?

Seems like Ferrari may have the Brawn advantage next year
as they've stopped all work on this years car

Brawn's advantage was the double diffuser which they debuted too late for anyone to copy, and too close to the beginning of the season for the FIA to ban it without looking foolish.

There's little chance of Ferrari unveiling a secret design 2 weeks before Australia.  (Though it's not impossible - giving up on this year's car would have nothing to do with that.)

[Scott]

Actually, there is a very good chance of Ferrari lifting the blinds off a secret design 2 weeks before Australia.  It happens almost every year with one team or another.  Moveable floor, internal damper, skirts, underbody work just to name a few.  Problem is, that often when one team comes up with a new device or design that is 'not fair' in the other teams eyes, normally the FIA simply bans it (unlike this year).

This year though Toyota and Williams also had double diffusers from the get-go, but they either didn't have the drivers that knew how to take advantage of it, or they had other issues.  Brawn had the complete package in the early season.

I have faith in Ross Brawn (and Adrian Newey) to come up with a very forward thinking car for next year with a few surprises that the rest hadn't thought of.  I hope they will live up to their reputation next year as well, but I'm not so sure I want Merc profiting from it. 

[Scott]

It sounds a bit scary to me. It would be way too easy for Brawn to become little more than the McLaren "B" team.

Although it is exciting and new for Brawn to be team principal and owner, he is one we know likes his recreation and he might be looking a few years down the road.  What better way than to secure the team's future with an engine manufacturer (I can't believe I'm actually typing this after what BMW has done to Sauber)?  That way he might be able to lead the way for 5-6 years and then have Merc own enough of the team that they simply install someone they want to continue on (a la Mclaren - I expect Merc had a big say in which of Ron's underlings would take the reigns).  And Ross retires to a fly fishing paradise once his kids are out of school.

[John S]

Although it is exciting and new for Brawn to be team principal and owner, he is one we know likes his recreation and he might be looking a few years down the road.  What better way than to secure the team's future with an engine manufacturer (I can't believe I'm actually typing this after what BMW has done to Sauber)?  That way he might be able to lead the way for 5-6 years and then have Merc own enough of the team that they simply install someone they want to continue on (a la Mclaren - I expect Merc had a big say in which of Ron's underlings would take the reigns).  And Ross retires to a fly fishing paradise once his kids are out of school.

Might also mean Ross and Nick Fry can get out of hoc to the banks on their private residences. They probably had to put up something as bank sureties when they took over the team.

[Scott]

I read an article that suggests all 200 shares were purchased by Ross Brawn himself (maybe for that 1£ that the media reported).  Maybe he re-sold some to Nick Frye and others after the fact, but I suspect that although Ross Brawn may have assets to guarantee cash flow, Nick likely doesn't.  I would have thought that the assets of the Honda team that were handed over to Brawn without lien would have been enough to convince the banks to run a decent credit line until Virgin stepped in.

But anyway, I think any Merc or other buy-in will be part of Ross's retirement package.

[david1275]

I would agree that this a good way for Ross (and Nick) to pave their exit route for a few years time. All in all it has to be good that another team has secured it's F1 future.

[FW14B]

I can see the benefits for Brawn GP, maybe also for Mercedes if they decide they do not have enough say at McLaren.  Not sure about a potential clash of interests though....  Maybe this is part of the team's long term funding plans?

[lkjohnson1950]

This is probably just the price for putting the Silver Star on the nose of the Brawn, and securing the engine supply, what with Merc throwing deals all over the place.

Lonny

[Jericoke]

Would the sport survive if say, Mercedes, Red Bull and Ferrari each owned 3 or 4 teams?  The teams could be compartmentalised, Merc team A might have more fun beating Merc team C than any of the Ferrari teams.

You'd probably get less of this espionage that goes on now. 

Also less of the fuzzy rule interpretations.

It would be easier to set budgets, and design common components, while still requiring each team to design its own chassis and aero packages.

The teams could share machine shops, wind tunnels and super computers.

Top competitive guys would still have challenges to push through and develope the sport. 

There would be far less risk of wondering which teams survive the winter.

It would also make FOTA much more powerful to only get three parties to agree, rather than a dozen.

[cosworth151]

Brawn doesn't have to look to BMW-Sauber for what might happen. At least they lasted 4 seasons. Honda pulled a Palin after only 3. I'm sure he remembers that.

Racing will always be a sideline to the manufacturers. This time last year there were 5 manufacturer teams, including McLaren. Now one's gone, another will be gone at the end of the season and there are constant rumors that 2 more are on the way out.