Mercedes boss Toto Wolff has revealed the team narrowly avoided breaching Formula 1’s strict $135 million cost cap in 2024, thanks to a series of costly crashes late in the season. With the budget stretched to the limit, George Russell’s back-to-back shunts in the United States and Mexican Grands Prix, coupled with Andrea Kimi Antonelli’s Monza disaster, forced Mercedes into uncharted territory.
Crashes that tested Mercedes’ resilience
Russell’s FP2 crash at the Autodromo Hermanos Rodriguez was the tipping point for the team, Wolff admitted, describing the incident as a “massive hit” to the budget. The Mexican crash required a complete chassis replacement, leaving Mercedes scrambling to stay compliant with financial regulations.
“We were in serious trouble after Mexico,” Wolff said. “The cost cap plan is tricky, and those three big incidents left us on the back foot. We had to get creative with parts and scale back some upgrades.”
Antonelli, Russell’s 2025 teammate, didn’t help matters with a high-speed crash during his debut FP1 session at Monza. His accident, combined with Russell’s back-to-back collisions, left the team managing a razor-thin margin under the cost cap, forcing compromises in aerodynamics and mechanics.
Creative solutions and sacrifices
Mercedes was left with limited options, including using only a single set of specific aerodynamic parts and shelving planned upgrades. Wolff explained how the team navigated the financial crunch:
“At one point, we had only one set of a certain type of wing. In Mexico, we couldn’t revert to an older aero spec because we had no spares. There was simply no money left in the cost limit to produce replacements.”
The financial strain forced Mercedes to scale back development on their W15, highlighting the growing challenges of operating under the cost cap.
Cost cap: A blessing in disguise?
Despite the challenges, Wolff remains a staunch advocate of the cost cap, crediting it with leveling the playing field and making smaller teams profitable.
“It’s definitely the right path,” Wolff asserted. “The cost cap has made teams sustainable and ensured the sport remains competitive. Even smaller teams are turning profits, which is a huge step forward for F1.”
The 2024 season saw four different teams clinch victories, proving the cost cap’s impact in creating a more competitive grid. However, Wolff stressed that accidents, like those from Russell and Antonelli, could severely impact a team’s ability to maintain performance within the financial constraints.