Daimler CEO committed to F1, seeks to slash costs

[October 15, 2020]    FRANKFURT (Reuters) - Mercedes owner Daimler is committed to Formula One but is working to slash costs and cut the environmental impact of motor racing, Chief Executive Ola Kaellenius on Wednesday.

Ola Kaellenius, chairman of Daimler AG speaks during the presentation of the new Mercedes-Benz S-Class luxury sedan at the Daimler production plant in Sindelfingen near Stuttgart, Germany, September 2, 2020. REUTERS/Ralph Orlowski

"We have as little reason to step out of Formula One as Bayern Munich has to step out of football," he said during a virtual roundtable discussion with journalists on Wednesday.

The carmaker is developing a plan to make the sport emissions neutral, including through the use of synthetic fuels, and wants to improve the costs of competing in motor racing.

"The net financial impact will be halved in the next three years. We have an even more aggressive cost reduction target in Formula One than for the rest of the company," Kaellenius said.

Separately Kaellenius reiterated that Daimler is "within striking distance" of meeting its carbon dioxide emissions reduction targets in Europe.

Mercedes-Benz has ramped up sales of electric and hybrid cars in the third quarter and will continue to do so for the rest of the year, he said.

(Reporting by Edward Taylor; Editing by Alison Williams)

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