Mercedes announce MAJOR £5.9 million loss in profits

Mercedes have recorded a £5.9 million drop in profits after publishing their accounts for 2023.

Not only have the team suffered a drop, but they have also lost their star driver Lewis Hamilton to Ferrari, while enduring a miserable start to the season.

READ MORE: EXCLUSIVE: Aston Martin star could ‘move aside’ for potential replacement claims F1 legend

When the British driver first announced he would be joining Ferrari, the company’s value increased by $7 billion demonstrating Hamilton’s financial value as well as his racing abilities.

The report adds to Mercedes' woes, as they find themselves fourth in the constructors' standings, behind nearest rivals Ferrari and McLaren, and only ahead of Aston Martin by a single point.

READ MORE: Hamilton reveals MIXED feelings from Mercedes employees over Ferrari move

Mercedes publish 2023 accounts

Despite a drop in profits, Mercedes still remain in a strong position financially compared to rival teams.

The Brackley-based squad are the first Formula 1 team to exceed £500 million in turnover, and brought in £546.5m in total during their 2023 campaign.

2023 sees a £71.9 million increase in their turnover from 2022, however their profits have dipped from £89.7m to £83.8m.

Mercedes have increased spending on development in order to catch up towards F1 rivals, which boss Toto Wolff believes they have made ‘solid progress’ towards.

Speaking ahead of the Chinese GP, he discussed F1's return to Shanghai, and the progress that his team have made.

READ MORE: 'Uncertainty' surrounds Chinese Grand Prix after FIA inspection

“Returning to China is an important moment for the sport," Wolff told Mercedes' website.

"As the world's largest automotive market and second biggest economy, China is crucial to the sport's global footprint. The growth of F1 in recent years has been positive and China is a key market in which to continue this progress.

“We are looking forward to racing in Shanghai for the first time in five years and bringing F1 back to the Chinese fans. With a sell-out crowd expected, I am sure it will be a fantastic event.”

“The headline results didn't necessarily show it, but we made solid progress with our car in Japan. We are looking forward to building on that this weekend.”

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