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Customer LoginsMercedes enters Formula E as series becomes marketing and R&D focus for premium electromobility
The premium OEMs are increasingly looking to enter the electric motorsport series Formula E as a way of promoting new electric products and accelerated electromobility strategies.
IHS Markit Perspective
- Significance: Mercedes-Benz has reserved an entry on the Formula E entry list for the 2019 season in a bid to join its rivals premium BMW, Audi and Jaguar in the EV racing series.
- Implications: Formula E was introduced in 2014 and was aimed at creating a dynamic new motor racing series that would also showcase and help the development of EV technology. When Mercedes-Benz joins the championship it will mean that six major OEMs will be involved in fielding works entries by 2019 as they look to use the championship as a platform for marketing their activities and R&D in the field of electromobility.
- Outlook: Formula E now has the most manufacturer participation of any major international motorsports series, and is increasingly being viewed as valuable marketing tool in the move towards premium electric vehicles by the big players in the segment. In the longer term the series has great potential and it will be interesting to see how it develops alongside Formula One and its current hybrid powertrain regulations.
Mercedes-Benz has announced that it has secured a 2019 entry for the Formula E electric vehicle (EV) motor racing series, according to a company statement. The news of the entry comes after Mercedes-Benz's rival BMW announced its own entry into the championship last week while Jaguar has also recently announced that it will compete in 2016 and 2017 with an official works entry. Audi has had a presence in Formula E since the championship's inception in 2014, through its ABT racing affiliate, and it also recently announced that it intended to scale up its involvement to a full manufacturer works effort starting in the 2017/2018 season. Mercedes-Benz's planned entry is significant as it comes hot on the heels of the announcements of its main rivals to either increase their existing involvement or join the series, and also because it already has one of the most highly visible presences in motorsport through its involvement in Formula One, where it has been hugely successful since the advent of the current hybrid Formula One regulation, and where it is currently on course for a third consecutive drivers' and constructor's championship. Renault also has a dual presence in Formula One with its own works team, and in Formula E, where it is the current champion team through its joint program with the DAMS racing team, while DS also has an entry. Commenting on forthcoming entry to Formula E the Executive Director of Mercedes-Benz GP Toto Wolff said, "We have been watching the growth of Formula E with great interest. At the current time, we are looking at all the options available in the future of motor racing, and we are very pleased with an agreement that secures us an opportunity to enter the series in Season 5. Electrification will play a major role in the future of the automotive industry. Racing has always been a technology R&D platform for industry and this will make Formula E very relevant in the future."
Outlook and implications
Mercedes-Benz signalling its intention to enter Formula One is significant because it follows announcements by its main rivals in the premium industry that they are either entering the series for the first time, of enhancing their presence. The championship appears to be becoming an increasingly attractive way for those manufacturers that are heavily involved in selling and developing EVs, or which are looking to increase their efforts in this area, to promote their electrification strategies and EV products. It could also eventually become a research and development (R&D) focus to improve EV range and performance. At the moment the rules are relatively restricted in terms of chassis and battery powerpack competitors are allowed to use. For the 2015/2016 season entrants were allowed free rein on the actual powertrain, although the battery will remain standardised for the foreseeable future, longer term it is possible that teams could be given free rein to come up with their own battery pack technology. This would create a high-profile environment where competing battery technologies for automotive applications could be assessed by OEMs and consumers alike.
In the longer term it is possible that Formula E could even surpass Formula One as the world's premier Formula One motor racing series. At the very least, the two series could merge at some point in the future as the wider industry move to electrification gains traction and any internal combustion engine element Formula One retains in its regulations (the current rules specify the use of 1.6-litre gasoline turbocharged hybrids) will make it less relevant to real world automotive technology and therefore less attractive to OEMs. This could be facilitated in the longer term by the recent ownership change that Formula One has undergone, with CVC Capital's controlling stake in the sport's management company being acquired by Liberty Media, a sister company of Liberty Global, which has the largest shareholding in Formula E. This change of ownership of Formula One may explain the interesting wording of Wolff's statement regarding Mercedes' Formula E entrance. "At the current time, we are looking at all the options available in the future of motor racing" could be viewed as a loaded statement, given rumours that Mercedes could withdraw from Formula One despite its current success to pursue other projects, such as Formula E. It could also be viewed as part of a gambit by Mercedes to extract more money from Formula One for its high-profile contribution to the sport. Mercedes and other top teams such as Red Bull are unhappy that Ferrari is guaranteed more money in prize money than they are regardless of on-track performance, due to a deal that was previously agreed between the Italian team and F1 CEO Bernie Ecclestone over Ferrari's historical contribution to the sport.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.