Mercedes extended their partnership with Formula 1 last year by signing the Concorde Agreement – a contract between Formula 1, FIA, and the teams that wish to compete in the Formula 1 world championship.
Toto Wolff, in a recent interview, reiterated the commercial importance of Formula 1 in Mercedes’ brand value. He explained that the racing DNA instilled in the team warrants their presence in Formula 1, the biggest sports platform in the world.
“I think for Mercedes, because it is in our DNA, we build road cars and we build race cars and the first Mercedes was a race car, it is around our core product.
“You can play branding and marketing on various platforms and many of them are successful platforms but motor racing is what we do because it is around the car. Formula 1 is the biggest sports platform, or one of the biggest sports platforms, in the world,” said Wolff.
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Wolff explains how F1 gives the Mercedes brand an edge
Formula 1, as a sporting product, generates around a billion viewers each year. According to Wolff, they are generating three and a half billion dollars’ worth of advertising equivalent through Formula 1’s reach across the globe.
The sport is also known for its innovation, and Wolff believes that gives an edge to the sport’s champions. “For us, there is the technological edge that Formula 1 provides. It is the sporting and team spirit that we add to the brand,” he explained.
The Silver Arrows claimed their seventh consecutive world title last season and recorded the longest domination in the sport’s history. Along with the car’s performance, the Mercedes brand also benefits from an association with their driver, Lewis Hamilton.
The pair have announced an extended contract for a year. Do you believe that Mercedes will retain Lewis and continue the domination, or do you feel the team’s time is coming to an end?