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Formula 1

Mercedes HPP turnover down by more than £40 million

The 2020 annual report and financial statements for Mercedes AMG High Performance Powertrains have been released, showing a significant reduction in turnover.

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Mercedes AMG High Performance Powertrains, Mercedes' Formula 1 engines operation, have reported a turnover of £195.4 million for the year ending December 2020, £42.4m down on their 2019 total (£237.8m).

A spokesperson for the Mercedes team has confirmed to RacingNews365.com that 70 percent of the turnover is related to F1.

As per the statement, "turnover also includes design, development and manufacturing activities on behalf of the parent company Daimler AG for transferring F1 technology to the Project One car and preparation for the 2021 (Season 7) Formula E race season".

It marks a loss before taxation of £0.1m, compared to a profit of £10.2m in 2019 – representing a margin of -0.1 percent against turnover (4.3 percent in 2019).

"The directors consider quality, technical excellence, speed and flexibility, combined with cost control, to be the principal success factors towards realising the company’s strategies and achieving the company’s targets," read the statement.

"Performance against these measurables is regularly reviewed.

"The company had another successful season with the Mercedes M11 EQ Power+ power unit, winning both the Constructors' and Drivers' Formula 1 World Championships for the seventh year in succession.

"The Mercedes power unit achieved 14 race wins, with 15 pole positions and six one-two finishes. The company's power unit accumulated 45 percent (2019: 38 percent) of the total points available during the season."

In 2020, Mercedes HPP supplied three teams: the works factory team, as well as Williams and Racing Point (now Aston Martin) as customers. In 2021, this roster has expanded to include McLaren.

Five directors are listed as holding office during the year, and up to the date of the signing of the financial statements, though Mercedes team boss Toto Wolff is not one of them.

The number of employees listed for the year is 758, compared to 742 in 2019. The Mercedes spokesperson also confirmed to RacingNews365.com that 85 percent of the headcount is F1-related.

"The company has assessed and continues to monitor the potential impact of COVID-19 very carefully and is taking all necessary precautions to protect the workforce in line with government advice," continued the statement.

"At this stage the Project One hypercar project has not suffered any significant disruption and there are minimal anticipated impacts on the Formula 1 and Formula E calendars, meaning the company is able to maintain profitability and to meet all financial obligations."

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