Mercedes wants F1 to cut costs by 50 percent

BERLIN (Reuters) - German carmaker Mercedes said on Friday Formula One teams must cut costs by at least 50 percent over the next two years although its own financial position remained solid.

"Within the Formula One Teams Association (FOTA) we're working very hard on measures to cut costs, and over the next two years we must achieve cuts of at least 50 percent," said Norbert Haug, the head of Mercedes Motorsport which powered Lewis Hamilton to victory in this year's championship.

"Our Formula One involvement is built on financially solid foundations and is in large part financed by our sponsoring partners," Haug added in response to an announcement by Japanese rival Honda that it was pulling out of the sport.

"This pullout is very sad," he said. "It only shows how important the cost-cutting measures are that we've been advocating for more than five years, and which have only been realised to a small degree.

"Mercedes-Benz's contribution is cost-efficient, the resonance in the media and in the public which last season and Lewis Hamilton's win generated was worth many times our financial investment," he added.

CUTTING COSTS

In a separate statement, German carmaker Audi said its U.S. factory team would not take part in the American Le Mans Series, despite a series of wins since it first entered in 2000.

Another Japanese team Toyota said it was also committed to cutting costs.

"We are contributing to the FOTA activities which will achieve significant cost reductions whilst maintaining the spirit of the sport," a team statement said.