Mercedes-Benz asks its F1 team to cut costs by 50%

Following Honda’s shocking announcement yesterday of killing its Formula One business, Mercedes-Benz has announced that its Formula One teams have been asked to cut their costs by a 50 percent over the next two years.

“Within the Formula One Teams Association we’re working very hard on measures to cut costs, and over the next two years we must achieve cuts of at least 50 percent,” Norbert Haug, the head of Mercedes Motorsport, told Automotive News.

Commenting on Honda’s pullout from Formula One, Haug said that the move is very sad and shows just “how important the cost-cutting measures are that we’ve been advocating for more than five years”

Toyota has also said that it has asked its team to cut costs as well.