F1: Engine cost cut impact "massive," Wolff claims

Mercedes motorsport chief Toto Wolff says FIA president Jean Todt's request to reduce Formula 1 engine supply prices would have a massive impact on the manufacturer's business model.

Customer teams are paying between $21-$26 million for powertrains, with Renault understood to be the most expensive.

Wolff said the matter not as simple as reducing the cost charged as planned investment has been allocated based on the contracts currently in place.

"It would massively impact the situation because in a large corporation, you set up your business case, you justify your investment and then you sign contracts," he said. "If that needs to be adjusted or changed because the environment has become more difficult then it is a huge challenge for such an organization like ours.

"You need to come up with a solution, a plan, and you need to justify why you are changing things, so that is the tricky bit. Yes, it has an impact."

Despite his concerns, Wolff underlined that Mercedes would take a serious look at whether it could reduce its customers' costs.

"Mr. Todt wants to try to reduce the engine prices for the customers – the smaller teams – because they are quite a large chunk of the overall budget and we take it very seriously," he said. "We're looking into things. Unfortunately, the situation is we've set up a business case with these engines with an underlying investment.

"We acknowledge it's an important bid, so we are sharpening our pencils and looking into the situation. We've promised to come back with an answer as to whether this is feasible or not."

The price customer teams have to pay for an engine supply is being looked by the FIA as part of a wider tweak of the engine formula following last week's Strategy Group meeting.

Mercedes currently supplies Williams, Force India and Lotus with engines.

Originally on Autosport.com