Mercedes F1 engines drive £110m investment in UK - Mercedes Benz SLK Forum

Motorsports Autocross, Track, Racing, and Competition Discussion

  • 1 Post By Berliner Heckflosse
LinkBack Thread Tools
#1 Old 12-25-2017
Premium Member
Join Date: Sep 2010
Location: Phoenix
Vehicle: 1999 slk 230
Other Toys: 1966 Mercedes Heckflosse
Posts: 14,045
Chats: 0
Mentioned: 11 Post(s)
Tagged: 0 Thread(s)
Quoted: 494 Post(s)
Thanks: 1,109
Thanked 1,412 Times in 950 Posts
(Thread Starter)
Mercedes F1 engines drive £110m investment in UK

German car manufacturer Mercedes has revealed that the production of the V6 turbo engines used by its championship-winning Formula One team is contributing around £111.7m to the British economy.

Last month Lewis Hamilton steered Mercedes to a fourth consecutive F1 *title, and although it races under the German flag both the team and its *engine manufacturing division are based in Britain.

Mercedes designs, develops and builds its F1 engines at a dedicated factory in Northamptonshire. The local area is named “Motorsport Valley”, *after America’s Silicon Valley, as eight of the 10 F1 teams are based there. Mercedes’ engine division alone had total costs of £126.9m in the year ending December 31, 2016 according to its latest accounts. They state that “the company now employs 571 staff members and contributes over 88pc of its total expenditure within the United Kingdom”.

At £73.5m, research and development comprises the bulk of this with staff paid a further £42.6m. The economic impact stretches far beyond that as Mercedes’ engine division deals with nearly 1,500 UK-based suppliers *including designers, equipment manufacturers and haulage firms.

The engines do not just power Mercedes’ own outfit but also the Force India and Williams teams. Fees for leasing them are received by Mercedes, with parent Daimler providing the remainder of the engine division’s revenue, which reversed by 7.5pc to £140.4m last year. After paying an £11.4m tax bill it was left with a £1.5m net profit.

Revenue of the F1 team itself accelerated 35.7pc to £289.4m, fuelled by a boost in prize money from winning the F1 title the previous year. However, costs surged 10.7pc to £274.9m due largely to changes to the F1 regulations. After paying £15.9m in tax the team made a £3.8m net loss. Combined with the £1.5m net profit from the engine *division, Mercedes’ F1 group was left with a £2.3m loss after tax.

Its investment in Britain has been aided by the Government’s support of the hi-tech industry through its research and development relief, which gives companies a deduction on taxable profits of qualifying expenditure.

The accounts state that “the United Kingdom remains a global centre of competence for the motorsport industry and this, coupled with the Government’s support for research and development, has enabled the company to continue to invest in a highly skilled workforce and technologically advanced asset base”.

It is not entirely driven by racing. The accounts state that “the company engages in research and development to support the development of Formula One power units and the transfer of technology to road car projects”.
Avel Du likes this.
Berliner Heckflosse is offline  
Sponsored Links

  Lower Navigation
Go Back   Mercedes Benz SLK Forum > General Discussion about Mercedes Benz SLKs > Motorsports


Quick Reply
Upload your files to MEGAUPLOAD
Upload your images to ImageShack

Register Now

In order to be able to post messages on the Mercedes Benz SLK Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Please enter a password for your user account. Note that passwords are case-sensitive.


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
User Tag List

Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page

Similar Threads
Thread Thread Starter Forum Replies Last Post
Mercedes challenged over 'Drive Pilot' TV ad Berliner Heckflosse Off Topic 0 07-28-2016 12:44 PM
2012-14 Mercedes-Benz Diagnostic Software Issue Berliner Heckflosse SLK R172 General Discussion 3 04-25-2016 03:22 AM
Mercedes Benz TV A drive in Elvis Presley's Mercedes 600 Berliner Heckflosse Off Topic 0 10-26-2015 02:36 PM
Drive Kit Plus -- Practical Experience & Review BertL SLK R172 General Discussion 3 06-13-2015 08:33 PM
Mercedes Benz DiesOtto Engine MarkR171 Off Topic 3 07-26-2007 08:05 PM

Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome

Clubs, Garage Plus vBulletin Plugins by Drive Thru Online, Inc.