“That Would Be Fatal”: $3.8 Billion Brand at Stake as Mercedes Warned Against Looming Danger by Ralf Schumacher

If the last two years were not enough, the start of 2024 certainly affirms that Mercedes is in trouble. With Lewis Hamilton confirming his exit from the Brackley outfit for 2025, the Silver Arrows seem to be losing all of its dominant image from the 2010s. Former F1 driver Ralf Schumacher also claimed that if they fail to produce a competitive car in 2024, that won’t be good for their brand reputation as a whole and would even hurt their valuation.

Speaking to the German Press agency as quoted by Motorsport-Total, Ralf stated, “Mercedes has to turn the corner as quickly as possible, no question about it.” The former Williams driver explained the risks of the eight-time champions team not being able to build a “winning car”.

Schumacher added, “That would be fatal for a brand like Mercedes and with the successes in recent years”. Certainly, a third consecutive year of uncompetitive machinery won’t do the Brackley team any favors from their parent company and shareholders. The Mercedes team currently has a valuation of $3.8 billion, just behind Ferrari at $3.9 billion.

The German brand is used to winning championships regularly or being in the fight for wins. 2022 and 2023 have given anything but that. In the end, F1 is a business, and car manufacturer brands rely on winning glory to boost their top and bottom lines. Apart from this, Schumacher also feels the team’s struggles might have led Lewis Hamilton to lose patience and confidence in the team.

With the 2024 season around the corner, Mercedes don’t seem to be in a good place after their star driver’s exit announcement. While they have been bullish about their car being better than the last two seasons, it is very difficult to see them fight Red Bull for the title.

What are Mercedes’ chances to fight Red Bull in 2024?

Toto Wolff claimed a few weeks ago that the Mercedes W15 seems to be giving good results in the simulator. However, after Lewis Hamilton’s bombshell, the morale of the team may not be at the best level. On the car performance, Hamilton had been losing patience since last season. Perhaps the W15 is not making him very excited as well.

This could be a potential reason behind the British driver opting to switch to Ferrari in 2025. Still, Wolff and Co. are hoping that Hamilton delivers a stellar effort again this year. The W15’s competitiveness may not matter to him much now, given he is already leaving at the end of the year.

Still, if the 39-year-old can get a few wins this season to sign off in style at the Silver Arrows, that would be quite satisfying. So, are Mercedes in a position to win races in 2024? It most likely may not happen unless the W15 makes a big step forward.

Red Bull is looking to extend its dominance this season too. The Milton Keynes outfit stopped development on the RB19 midway through 2023 itself to focus on the RB20. Hence, many expect RB20 to be another rocketship coming from Red Bull Racing. There have been even reports that they have started working on the 2025 car already.

So, Mercedes definitely have a mountainous task if they wish to fight Red Bull in 2024. All eyes will be on James Allison’s technical brilliance to develop a better challenger for giving Hamilton an ideal send-off.