“An eleven year journey comes to an end”- Mercedes and Petronas to part ways after this season

Somin Bhattacharjee
|Published 17/10/2021

Malaysian oil company Petronas is set to part ways with Mercedes AMG F1 with Saudi oil giants Aramco lined up to take its place. 

Petronas and Mercedes have a decade-long history to look back on. The two have won 7 Constructors and Drivers’ Championships together.

Since its introduction to F1 in 2010, Petronas has grown to become an important name in the sport. A huge part of Mercedes’ dominance in the turbo-hybrid era has been due to the rapid evolution of Petronas lubricants and oil formulae.

The Malaysian state-owned company suffered massive losses after the onset of the Covid 19 pandemic. As a result, they recorded millions of dollars in losses due to lower oil prices and more demand.

It was evident that Petronas would be implementing cost-cutting measures, even in the world of F1. This news comes after they announced earlier in August that they will be stepping away from motorcycle racing as well.

Also read: “It has been more of a sort of coin toss”– Mercedes think better pace will not determine verdict of remaining races while competing against Red Bull

Saudi oil giant Aramco set to take over as title sponsor

Another state owned company, Aramco, is set to take over as Mercedes title sponsor from 2022. In 2020, Aramco signed a $450 million deal, making them a global partner of F1.

As of now, Aramco have naming rights to 3 Grand Prixs and also work to support F1’s E-Sport division. Fans have however been criticizing their involvement in the sport. The Saudi government’s human rights record and habit to ‘sportswash’ things have not gone unnoticed.

According to reports, in spite of the success they enjoyed on track, Petronas was not happy with Mercedes. They did not like the way the Silver Arrows treated them as title sponsors.

There were talks between Mercedes and Aramco back in 2020 during which Petronas began negotiating with Formula 1. If Mercedes signed with Aramco, it was Petronas who would be taking up the role of global partner. In the end, the German manufacturers decided to stay with Petronas.

INEOS, who are part owners and the main sponsor of Mercedes AMG F1 signed a deal with Aramco in 2019. The British company have invested in the construction of three plants in the Kingdom of Saudi Arabia.

Mercedes and Aramco will be starting their partnership in 2022. The company’s blue green palette will replace the turquoise of that of  Petronas.

About the author
Somin Bhattacharjee

Somin Bhattacharjee

Somin Bhattacharjee is an F1 writer at The SportsRush. He holds a bachelor's degree in business administration and aims to work in the sports industry for the rest of his life. Somin has been a fan of Scuderia Ferrari since 2010 and his favorite driver is none another than the great Fernando Alonso. Other than longing for a Ferrari Championship win once again, Somin spends his free time playing football and basketball.

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