The suspense is over: Lewis Hamilton has signed on the dotted line (too bad, George) to establish a new contract with the Mercedes-AMG Petronas F1 Team which he has been with since 2013. Until now, there has been a lot of speculation about Hamilton’s demands and salary expectations (though none were officially confirmed to the media) and the possibility the George Russell – who drove in his place for one race last year – might instead be taken on.
Greater diversity and inclusion
A significant part of the new agreement builds upon the joint commitment to greater diversity and inclusion in motorsport that was made last year by Lewis Hamilton and Mercedes-AMG. This will take the form of a joint charitable foundation, which will have the mission of supporting greater diversity and inclusion in all its forms in motorsport.
“We’re very happy to keep the most successful F1 driver of the current era in the most successful F1 team of the current era,” said Markus Schafer, Member of the Board of Management of Daimler AG, responsible for Group Research, Mercedes-Benz Cars Chief Operating Officer and Non-Executive Chairman of the Mercedes-AMG Petronas F1 Team.
“Lewis is not only an incredibly talented driver; he also works very hard for his achievements and is extremely hungry. He shares his passion for performance with the entire team which is why this collaboration has become so successful. But Lewis is also a warm-hearted personality who cares deeply about the world around him and wants to make an impact. As a company, we share this sense of responsibility and are proud to launch a new, joint foundation to improve diversity in Formula One. Opening the series to under-represented groups will be important for the sport’s development in the future and we’re determined to make an impact,” he said.
Strategic steps for future success
Retaining Hamilton in the team is an important step for the future success of the Mercedes works team. Over the past 12 months, Daimler AG and the Mercedes-AMG Petronas F1 Team have established several key strategic pillars to lay the foundations for a bright future of the Mercedes F1 works team.
In March 2020, the company announced a new sustainability strategy for its motorsport teams, which includes cutting the CO2 emissions of the F1 team in half by 2022 compared to 2018 and achieving a net-zero carbon footprint from 2020 onwards. The sustainability commitment of the team goes far beyond that of the wider sport and aligns closely with Daimler’s global sustainability strategy.
In June, the team made a commitment to greater diversity and inclusion within the team and the wider sport which was symbolised by the new black base livery of the car. Later in the year, the team launched its programme ‘Accelerate 25’ to honour the commitment. Part of the programme is the objective to continuously raise the standards of entry and initially aim for at least 25% of all new starters at the Mercedes-AMG Petronas F1 Team to come from under-represented groups until the end of 2025.
In October, Daimler AG announced a new strategic course which includes a closer partnership between the Mercedes F1 works team and the Mercedes-AMG performance division. Both partners are united in their pursuit of performance and cutting-edge technology.
At the end of 2020, INEOS became a new shareholder in the Mercedes-AMG Petronas F1 Team, which is now owned in three equal parts by Daimler AG, INEOS and Toto Wolff. At the same time, Wolff’s contract as Team Principal & CEO of the team was extended and ensures his continued leadership in the coming years.
In addition to these important strategic pillars, the new financial regulations in Formula 1, which came into effect on 1 January 2021, will help F1 teams on their journey to financial sustainability in the years ahead.
“2020 was a difficult year for Formula One, but we’re happy the series was able to go racing and produce a thrilling season,” said Schafer. “Despite the challenges, we were able to not only defend both championship titles, but also make some very important strategic decisions for the future of the team. We’ve aligned the sustainability efforts of our Mercedes works team more closely with those of Daimler, both in terms of the environmental impact and the economic value for the team’s shareholders.”
Technology transfer to the next level
He added that the closer collaboration between the F1 team and AMG ‘creates an exciting opportunity for both sides and will take our technology transfer from the racetrack to the road to the next level’. “Formula One is one of our biggest global marketing platforms and the steps we’ve taken in the last 12 months ensure that this platform stays highly attractive for us. We remain strongly committed to the sport and are excited to see what the future holds for our Mercedes works team,” he said.
Hamilton will again be partnered by Valtteri Bottas (above) who announced that he will continue racing together with the team until at least the end of 2021. It will be his fifth year with the Mercedes-AMG Petronas F1 Team after joining in 2017.
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