Toto Wolff has acknowledged that Mercedes risks violating the Formula 1 budget cap this season.
The cap, established by the FIA in 2021, limits a team’s annual spending with certain exceptions.
However, expenses from crash damage are counted against this limit, and Mercedes has incurred significant costs in this area recently.
George Russell faced his second major crash in a week, colliding with barriers during FP2 at the Mexican Grand Prix, which prematurely ended his session. Although he exited the car on his own, footage showed him in pain before he was taken to the medical center.
Fortunately, a Mercedes representative later confirmed he didn’t suffer any lasting injuries, but his car required a complete rebuild overnight, adding to the financial strain.
Wolff expressed concerns about the team’s financial situation concerning the budget cap, referring to Russell’s crash as a “really big impact” and noting that the car sustained serious damage.
He mentioned that while they have the old chassis, nearly all other components need replacement, which is costly.
Wolff highlighted the team’s difficulties in managing repair costs, referencing Russell’s crash in Austin and a significant incident involving Andrea Kimi Antonelli during practice in Monza.
He stated, “We are in serious trouble,” emphasizing the challenge of staying within budget after these accidents.
Since the budget cap’s implementation, Red Bull is the only team found guilty of overspending.
They disputed the FIA’s claims but ultimately accepted responsibility and faced a £5.4 million fine, along with a 10% reduction in aerodynamic testing for a year.
Other teams have committed procedural breaches, resulting in fines without sporting penalties.
