Mercedes-AMG PETRONAS Formula One Team __________________________________________________
Adapting to the cost cap enforced new ways of thinking to ensure parts are delivered efficiently
prove a concept . We ’ re in a situation where we design something in this factory , take it to an event , and find out if it ’ s going to achieve its full objective . If not , we learn from it , and start again . That ’ s really what we ’ re all about here .”
The process is endless , and above ensuring speedy delivery , the team also needs to grapple with external adjustments , such as FIA regulations . One of the most challenging was of course the cost cap . Introduced in 2021 , a spending limit of $ 145 million was enforced to establish fair economics between the most successful teams and newer entries to the sport . In 2023 , the cap dropped to $ 135 million , and although Mercedes-AMG has adapted well , it has not always been a smooth ride . “ The cost cap ,” shares Rob , “ has probably had the biggest impact on us since I ’ ve been here . Initially , it wasn ’ t too painful . However , during the pandemic , other teams lobbied to have it reduced further , and then , for companies like ours , it was eyewatering . We had no choice but to reassess how we operate .
“ We looked at resizing the company , which would have been simpler but painful , but we had spent so many years building the team we have today that we did not want to break this up without a fight . We spent many hours thinking about how to achieve this goal while ensuring we conformed to the cost cap regulations . The answer was to develop a model where we balanced out what we call F1 work and non-F1 work . This brought us a level of efficiency the business has never seen before . When it comes to manufacturing , things had always been pretty efficient , as that ’ s how the manufacturing folks here have always worked . The introduction of the cost cap , however , has driven this to a whole new level and our focus on utilization is so much higher than it was before ,” Rob stresses .
Gordon echoes this sentiment . For him , in addition to the cost cap pressure , he acknowledges that time will also always be a challenge in Formula One . “ Adapting to the cost cap enforced new ways of thinking to ensure parts are delivered efficiently . I have a lot of people to oversee , and I need to be certain that we are all compliant , which forces us to be innovative , and meet deadlines .”
Although working in a highpressure environment can be physically and mentally demanding , working for one of the industry ’ s leading teams is a dream for many , and with the right approach , some individuals thrive within this sort of atmosphere . Like Darren Burton , who is aware that the chance to establish and develop a career with a team like Mercedes-AMG is a once-in-a-lifetime opportunity . “ I ’ ve been so fortunate ,” begins the Operations Director . “ I worked trackside for a number of
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