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Wolff opens up on cost cap issues

Mercedes-AMG F1 W13 E Performance Launch – Steve Etherington. Credits: Mercedes.

Toto Wolff reveals that it is difficult for the top teams to comply with the cost cap rules because of inflation.

The cost cap has been reduced from $145m to $140m ahead of the 2022 season. At the same time, according to the Consumer Prices Index, the inflation level in the UK is 5.5%, which is almost the highest mark in 30 years.

It all causes issues for the teams as they need to stay within the limit of the cost cap and keep the momentum. Wolff has spoken about how Mercedes went through that.

“It has been very, very difficult to structure the company and the organisation in the right way to meet the cost cap at $140m,” the Mercedes team principal

“Also in a high inflation environment, we are not only reducing by $5m, but we have a situation where you’re not able to really increase the costs and the payroll. So that is extremely painful.”

At the same time, Wolff has stated that the teams need to be more cautious while developing the cars.

“And on the other side, you have to decide very carefully where you invest your dollar in R&D. In the past, it was a little bit easier because you could follow various avenues in chasing performance.

“Today you have to decide which one has the highest potential and then embark on it. It’s a totally different way of operating for the big teams.”

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