Mercedes boss Toto Wolff has revealed the team narrowly escaped breaching Formula 1's hard $135 million budget cap in 2024, thanks to a series of costly late-season crashes. With the budget stretched to the limit, George Russell's back-to-back crashes at the United States and Mexican Grands Prix, coupled with Andrea Kimi Antonelli's disaster at Monza, forced Mercedes into uncharted territory.
Accidents that tested Mercedes' resilience
Russell's crash during FP2 at Autodromo Hermanos Rodriguez was the tipping point for the team, Wolff admitted, describing the incident as a “massive blow” to the budget. The crash in Mexico required a complete chassis replacement, leaving Mercedes struggling to stay compliant with financial regulations.
“We were in serious trouble after Mexico,” Wolff said. “The budget cap plan is tricky, and these three big incidents have put us on the defensive. We had to get creative with the parts and cut back on some upgrades.”
Russell's 2025 teammate Antonelli didn't help the situation with a high-speed crash during his first FP1 session at Monza. His accident, combined with Russell's consecutive crashes, left the team running a razor-thin margin under the budget cap, forcing compromises in aerodynamics and mechanics.
Creative solutions and sacrifices
Mercedes was left with limited options, including using only one set of specific aerodynamic parts and postponing planned upgrades. Wolff explained how the team navigated through the financial crisis:
“At one point we only had one set of a certain type of fin. In Mexico we couldn't go back to an older aero spec because we didn't have spare parts. There was simply no more money in the cost limit to produce replacements.”
-Financial pressure has forced Mercedes to scale back development of their W15, highlighting the growing challenges of operating under the budget cap.
Budget Ceiling: A Blessing in Disguise?
Despite the challenges, Wolff remains a staunch defender of the budget cap, crediting it with leveling the playing field and making small teams profitable.
“This is definitely the right path,” Wolff said. “The budget cap has made teams sustainable and ensured the sport remains competitive. Even small teams are making a profit, which is a huge step forward for F1.”
The 2024 season saw four different teams achieve victories, proving the impact of the budget cap in creating a more competitive grid. However, Wolff stressed that accidents, like those of Russell and Antonelli, could seriously affect a team's ability to maintain its performance under financial constraints.
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