The most entertaining part of this article is its explanation that it's a significant improvement from 2014, where they lost £76.1 million. Excuse me while I stare in disbelief
Murray Walker at the 1997 Austrian Grand Prix wrote:The other [Stewart] driver, who nobody's been paying attention to, because he's disappointing, is Jan Magnussen.
Well it comes as no surprise to me. I don't think Mercedes was looking to make money from Formula One, and £22.3 million is a loss the Daimler Group can sure cope with.
If not, I heard there's a certain Indonesian pay driver who could replace Lewis at any time...or they could ask the Reverend.
sw3ishida wrote:Jolyon Palmer brought us closer as a couple, for which I am grateful.
Ataxia wrote:
Londoner wrote:Something I've thought about - what happens to our canon should we have a worldwide recession or some other outside event?
According to the report, the financial results were "within the pre-defined parameters set by the shareholders".
This is very important. I doubt any manufacturer goes into the sport expecting to break even or turn a profit on the bottom line of the F1 team as a standalone venture. The gains are hard to quantify in raw, hard numbers, whether it be increased brand value or perception, or any other strategic goal a manufacturer has from entering the sport.
The other thing I find interesting is there is no reporting on the profit/loss of Mercedes HPP. With the vast R&D resources required to develop and build the hybrid powertrains, it would be interesting how much of a loss they are running at, and whether it is significantly more or less than the F1 team itself.
Novitopoli wrote:Everytime someone orders at Pizza Hut, an Italian dies.
According to the report, the financial results were "within the pre-defined parameters set by the shareholders".
This is very important. I doubt any manufacturer goes into the sport expecting to break even or turn a profit on the bottom line of the F1 team as a standalone venture. The gains are hard to quantify in raw, hard numbers, whether it be increased brand value or perception, or any other strategic goal a manufacturer has from entering the sport.
The other thing I find interesting is there is no reporting on the profit/loss of Mercedes HPP. With the vast R&D resources required to develop and build the hybrid powertrains, it would be interesting how much of a loss they are running at, and whether it is significantly more or less than the F1 team itself.
I think you are going to be quite surprised by this - according to the accounts that they filed with Companies House, Mercedes HPP were actually making a net profit for the year ending in December 2015 - they stated that turnover was £151.8 million, with the company making a pre-tax profit of £6.1 million.
That is not a new development either - their accounts for 2014 and 2013 indicate that they have generally been running at a net profit between £5-6 million per year, although that is set against an increase in turnover from about £133 million to about £141 million in that period (i.e. so although their net profits were holding steady, their profit margin has been eroded slightly).
Martin Brundle, on watching a replay of Grosjean spinning: "The problem with Grosjean is that he want to take a look back at the corner he's just exited"
mario wrote:I think you are going to be quite surprised by this - according to the accounts that they filed with Companies House, Mercedes HPP were actually making a net profit for the year ending in December 2015 - they stated that turnover was £151.8 million, with the company making a pre-tax profit of £6.1 million.
That is not a new development either - their accounts for 2014 and 2013 indicate that they have generally been running at a net profit between £5-6 million per year, although that is set against an increase in turnover from about £133 million to about £141 million in that period (i.e. so although their net profits were holding steady, their profit margin has been eroded slightly).
I understand Mercedes HPP are involved in other activities aside from development and production of Formula 1 engines, so I presume those activities may help in balancing the books. I suppose I shouldn't be as surprised as I am.
Novitopoli wrote:Everytime someone orders at Pizza Hut, an Italian dies.
mario wrote:I think you are going to be quite surprised by this - according to the accounts that they filed with Companies House, Mercedes HPP were actually making a net profit for the year ending in December 2015 - they stated that turnover was £151.8 million, with the company making a pre-tax profit of £6.1 million.
That is not a new development either - their accounts for 2014 and 2013 indicate that they have generally been running at a net profit between £5-6 million per year, although that is set against an increase in turnover from about £133 million to about £141 million in that period (i.e. so although their net profits were holding steady, their profit margin has been eroded slightly).
I understand Mercedes HPP are involved in other activities aside from development and production of Formula 1 engines, so I presume those activities may help in balancing the books. I suppose I shouldn't be as surprised as I am.
Yes, I believe that they also prepare engines for Mercedes's other motorsport activities, including DTM and GT racing.
Martin Brundle, on watching a replay of Grosjean spinning: "The problem with Grosjean is that he want to take a look back at the corner he's just exited"
Sheesh. Reminds me of the old saying (Can't remember who said it though) "How to become a millionare in F1? Start out as a Billionare"
I got Pointed Opinions and I ain't afraid to use em! F1rejects no.1Räikkönen and Vettel fan. BTW, thats Räikkönen with two K's and two N's. Not Raikonnen (Raikkonen is fine if you have no umlauts though)
DonTirri wrote:Sheesh. Reminds me of the old saying (Can't remember who said it though) "How to become a millionare in F1? Start out as a Billionare"
On the other hand, when you consider that Daimler AG has a turnover in the order of €150 billion, £22.3 million is pocket change by comparison - they'll probably consider that the advertising value they're getting is worth it.
After all, how much did Nissan spend on their Superbowl advert for the flop that was their LMP1 effort? I imagine that they might well have ended up a similarly large amount of money out of pocket as Mercedes are, but without the positive headlines that Mercedes are getting.
Martin Brundle, on watching a replay of Grosjean spinning: "The problem with Grosjean is that he want to take a look back at the corner he's just exited"
As has been said - that looks like good value considering.. But what I was thinking about was how it compares to the 'old' days - I thought I remembered a Mercedes person saying ( in the not too distant past) something like ; 'its a lot cheaper than the old days'. I can't recall how much Mercedes were spending in the early 2000s just to be in the back of a McLaren...but it was a lot. As I recall it was bit more difficult to deduce the figures in those days too .
I started supporting Emmo in 1976 (3 points )....missed 75, 74, 73, 72...
