German vehicle manufacturer Mercedes has says producing the V6 turbo engines utilized by its championship-winning F1 team is adding around £111.7m towards the British economy.
Recently Lewis Hamilton steered Mercedes to some 4th consecutive F1 title, and even though it races underneath the German flag both team and it is engine manufacturing division are located in Britain.
Mercedes designs, develops and builds its F1 engines in a dedicated factory in Northamptonshire. The neighborhood area is known as “Motorsport Valley”, after America’s Plastic Valley, as eight from the 10 F1 teams are based there. Mercedes’ engine division alone had total costs of £126.9m around ending December 31, 2016 based on its latest accounts. They condition that “the company now employs 571 staff people and contributes over 88pc of their total expenditure inside the U . s . Kingdom”.
At £73.5m, development and research comprises the majority of this with staff compensated an additional £42.6m. The economical impact stretches beyond that as Mercedes’ engine division handles nearly 1,500 United kingdom-based suppliers including designers, equipment manufacturers and haulage firms.
The engines don’t simply power Mercedes’ own outfit but the Pressure India and Johnson teams. Charges for leasing options are received by Mercedes, with parent Daimler supplying the rest of the engine division’s revenue, which reversed by 7.5pc to £140.4m this past year. After having to pay an £11.4m goverment tax bill it had been playing a £1.5m internet profit.
Revenue from the F1 team itself faster 35.7pc to £289.4m, fuelled with a increase in prize money from winning the F1 title the year before. However, costs surged 10.7pc to £274.9m due largely to changes towards the F1 rules. After having to pay £15.9m in tax they designed a £3.8m internet loss. Combined with £1.5m internet make money from the engine division, Mercedes’ F1 group remained having a £2.3m loss after tax.
Its purchase of Britain continues to be along with the Government’s support from the hi-tech industry through its development and research relief, which provides companies a deduction on taxed profits of qualifying expenditure.
The accounts condition that “the Uk remains a worldwide center of competence for that motorsport industry which, along with the Government’s support for development and research, has allowed the organization to carry on to purchase an experienced workforce and technologically advanced asset base”.
It’s not entirely driven by racing. The accounts condition that “the company partcipates in development and research to aid the introduction of F1 power units and also the change in technology to road vehicle projects”.