Lewis Hamilton

That was a fun race! I made a good start into turn one and had a really good battle with Charles (Leclerc). Running in second, I was then focused on trying to get closer to Max (Verstappen) in those early stages. Their pace at the moment is undeniable though so I wasn’t able to get close enough to challenge him. We’ve still got a long way to go to equal the pace he showed throughout the Sprint. Nonetheless, I’m really happy to be back on the podium.

Starting ahead of Max tomorrow is helpful. Ultimately, I think he will be breathing down our necks before too long given the pace that he had today. I think that will open up a good fight though between ourselves, the Ferraris and the McLarens. We’re all quite similar in pace this weekend by the looks of it so I hope we get to have a good battle tomorrow. Keeping Max behind would be awesome but if not, we’ll do everything we can to finish on the podium and bring home good points.
George Russell

It’s been a bit of a scrappy day for me. Both penalties that I received today were fair. I was unable to give the position back to Piastri in the Sprint as Gasly had already passed him. If I let Piastri past, I would have had to let Gasly past too. It was a bit of a shame as it was an optimistic move from myself. Ultimately though, there aren’t a huge amount of points up for grabs on a Saturday.

We’re in a good place to fight for a podium from P5 tomorrow. It’s going to be an interesting race. The tyres felt good in the Sprint but that was helped by the cloudy conditions and the temperature dropping a little. It will be close between a one and a two-stop tomorrow and we’re going to have to be dynamic in order to react to the situation. We should have a good fight with the Ferraris and the McLaren of Norris. We may have the speed on them, but they are starting ahead so we will see what we can do.
Toto Wolff, Team Principal & CEO

We can be carefully optimistic with how the weekend has gone so far and how our updates have performed. We didn’t think this would be a track where we would be anywhere near the front. There are a lot of fast corners that are not usually our strength, so we’ve made a good step. That has proved key in putting us in a position to score solid points today.

After a tougher Sprint Shootout, both drivers showed strong pace in the Sprint itself. Lewis pressured Max early on but ultimately his speed proved too strong. We know we’ve still got a lot of work to catch up to the very front, but we can be encouraged by our first sprint podium of the season. George did everything he could today and bringing a point home having started P11 is useful for the team. His penalty was completely justified, and we should have given the position back. That was my fault as I thought we had more pace to get further ahead than five seconds. If we play the strategy well tomorrow, we should be racing for a solid podium position.
Andrew Shovlin, Trackside Engineering Director

There's lots of encouragement we can take away from today, even if we could have walked away with a few more points if everything had gone our way. Lewis had good pace in the Sprint Shootout. We were 0.139s off pole on Friday but 0.069s today. That’s a good sign that the update has moved us in right direction. George didn't have a new set of soft tyres for his final run which is costly here, so he was never going to be able to trouble the front rows.

In the F1 Sprint, George did a good job to pick up positions. It's a shame to drop a place with the penalty but it's good to have got into the points. Lewis meanwhile did a great job. Second was the best that the car had in it today, but it was encouraging to see how much pace he had over Leclerc. That’s another sign that we are moving in the right direction. We've now got some good data to review overnight as part of our preparations for the race. The longer race opens up some options on strategy, so hopefully we'll be able to make progress with both drivers. Max was able to keep us at arm's length today, but it looked like we had the pace to challenge everyone else. Our stretch target for tomorrow therefore has to be a double podium.

Mercedes-Benz Group AG (ticker symbol: MBG) achieved solid third-quarter results in a subdued market environment marked by intense price competition, particularly in the electric vehicle segment. Earnings Before Interest and Taxes (EBIT) reached €4.8 billion (Q3 2022: €5.2 billion) as improved net pricing at Mercedes-Benz Cars and a rise in sales of premium vans helped to partially offset higher inflation, currency effects and supply-chain related costs. Revenue fell 1.4% to €37.2 billion (Q3 2022: €37.7 billion) in part because passenger car sales were around 5% lower in the quarter, due to a supplier-induced shortage of 48-volt systems.

Mercedes-Benz continues to pursue its strategy of profitable growth. Thanks to strong sales of Mercedes-Maybach and G-Class vehicles in the Top-End and good pricing overall, the adjusted Return on Sales (RoS) at Mercedes-Benz Cars reached 12.4% (Q3 2022: 14.5%). With an adjusted RoS of 15.0% (Q3 2022: 12.7%), Mercedes-Benz Vans once again benefited from solid demand and a favourable model mix.

“The team at Mercedes-Benz delivered solid results despite a challenging environment. We continue to demonstrate resilience thanks to desirable products and a disciplined go-to-market approach. While we remain vigilant regarding the macroeconomic outlook, we confirm our full-year financial targets for 2023.”
Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG
Transformation

At the IAA in Munich, Mercedes-Benz showcased how it will redefine the segment with its Concept CLA Class, an electric car with efficiency of around 12kWh/100km, giving it a range of more than 750 kilometers (WLTP)1. To accelerate the shift to electric mobility Mercedes-Benz is building its own global charging network. It opened its first charging hub a few days ago in Chengdu (China). Atlanta (USA) and Mannheim (Germany) will follow in a few weeks. To further demonstrate the outstanding safety of its electric cars, Mercedes-Benz conducted the first live, frontal-offset crash test involving two electric vehicles. The passenger safety cell of both electric models remained intact and the doors could still be opened. In an emergency, this would make it possible for occupants to exit the vehicle on their own or for first responders and rescue personnel to reach them. The high-voltage system in the EQA and the EQS SUV switched off automatically during the collision. 

Investments, free cash flow, liquidity

The free cash flow of the industrial business in the third quarter reached €2.3 billion (Q3 2022: €3.0 billion) on lower passenger car sales and higher investments into future technologies.

The net liquidity of the industrial business rose to €28.5 billion (end of 2022: €26.6 billion). The Group’s investments into property, plant and equipment in the third quarter totaled €0.9 billion (Q3 2022: €0.8 billion). Research and development expenditure amounted to €2.5 billion (Q3 2022: €2.3 billion) due to higher investments in future platforms and technologies, including MB.OS.
Divisional results

Mercedes-Benz Cars Q3 revenue dipped 3.8% on lower vehicle deliveries, narrowing adjusted Earnings Before Interest and Taxes to €3.3 billion (Q3 2022 €4.0 billion). The average selling price remained stable in Q3 compared to the prior-year quarter reaching approximately €74,600 (Q3 2022: €75,400) and even rose slightly from approximately €73,500 in the second quarter. Healthy net pricing partially offset slightly lower volumes and the change in model mix. A €329 million headwind from foreign exchange further dampened earnings. Overall sales of Mercedes-Benz Cars reached 1,529,800 units in the first nine months of the year (+2%), and 510,600 units (-4%) in the third quarter. Volumes were impacted by a model changeover for the E-Class and a supplier bottleneck which constrained availability of the GLC in particular.
Mercedes-Benz continues to defend its leadership position in the Top-End Vehicle segment where the S-Class enjoys a market share of above 50% in China. Overall, Top-End Vehicle sales are expected to increase on a full-year basis.

In Q3, S-Class wholesale deliveries were impacted by a seasonal slowdown, temporary certification matters and the macroeconomic environment. However, S-Class sales were up 9% in China and retail sales in the U.S. rose 48% in the quarter. 

In the Top-End segment Mercedes-Benz sales reached 246,500 units (+6%) in the first nine months of the year and 69,900 units in Q3 (-11%) as Mercedes-AMG sales were impacted by model changeovers of the GLC, the E-Class and entry models in China. By contrast, Mercedes-AMG BEV sales rose by 51% in the third quarter. Mercedes-Benz continues to expand the market for Top-End electric vehicles, with the Mercedes EQS SUV seeing a 162% rise in sales with strong growth in all regions. In the U.S., registrations of the EQS outpaced those of its main Top End peers in the first nine months of the year.

In the Core segment, Q3 sales reached 290,200 units (-1%) and in the Entry segment sales reached 150,500 units (-5%) as the A- and B-Class models received a mid-lifecycle makeover. The company presented the AMG GT Coupe and an all-new E-Class Estate.

Mercedes-Benz Vans increased its global sales in the third quarter of 2023 to 105,100 units (+1%) thanks to a strong contribution from commercial vans. Global sales of all-electric vans doubled to 6,300 units (Q3 2022: 3,100). All-electric sales accounted for 6% of total sales. In the strategically important U.S. market, the division sold 21,800 (Q3 2022: 15,500) units reaching the best sales quarter ever. Thanks to solid net prices, improved product mix and lower raw material costs, EBIT increased to €715 million (+44%) and was able to offset inflation and supply chain-related cost increases. Adjusted for non-recurring items, EBIT rose by 36% to €743 million. Revenue was up to €4.9 billion, 15% higher than in the prior-year quarter. This development resulted in a Return on Sales of 14.5% and an adjusted RoS of 15% respectively. Third-quarter cash flow amounted to €980 million and adjusted cash flow amounted to €1.04 billion.

In the third quarter of 2023 Mercedes-Benz Mobility’s new business increased to €15.2 billion and is above the level of the prior-year period (Q3 2022: €14.3 billion). The contract volume of Mercedes-Benz Mobility amounted to €133.8 billion at the end of September, matching the level at the end of the previous year (FY 2022: €132.4 billion). At €363 million, the adjusted EBIT was below the previous years level (Q3 2022: €577 million), a decrease mainly caused by higher refinancing rates and intensified competition in the financial services sector. In addition, the cost of credit risk is elevated, driven by a weakening macroeconomic environment as well as higher delinquencies in some markets. This combined with negative foreign exchange effects, resulted in a decrease of the adjusted Return on Equity (RoE) to 10.4% (Q3 2022: 15.8%).

Outlook

With regional differences, the overall growth momentum of the world economy is likely to remain rather subdued for the rest of the year. The above-average inflation in many places and persistently restrictive monetary policy of key central banks is likely to continue to weigh on growth. Global gross domestic product is expected to increase by only around 2.5% in 2023. Geopolitical imponderables remain another major factor of uncertainty. By contrast, energy prices are expected to remain at a significantly lower level on average in 2023 than in the previous year.

Mercedes-Benz Cars: The rate of sales from the first three quarters in 2023 is seen remaining at approximately the same pace. Full-year sales are thus expected at the prior-year level. As the 48-volt supply constraint is expected to continue, we expect Q4 sales to remain at the same level as Q3. The adjusted RoS is still seen at 12% – 14% for the full year. Due to intensified pricing competition particularly in the BEV segment, and given the 48-volt supply issues, it is expected to be in the lower half of this range. Inflation-related supplier costs are seen sitting at a higher level than at the beginning of the year. The adjusted Cash Conversion Rate is seen at 0.8 – 1.0. Investments in property, plants and equipment and into research and development are seen significantly above the prior-year level.

At Mercedes-Benz Vans, unit sales are expected to remain significantly above the prior-year level. In addition, some higher ramp-up related project expenses are seen in the final quarter. The adjusted RoS is expected in the range of 13% – 15% and is seen at the upper end of this range. The adjusted Cash Conversion Rate is expected at 0.7 – 0.9. As part of the technology and product offensive, investments in property, plant and equipment and into research and development are still seen significantly above the prior-year level.

The adjusted RoE at Mercedes-Benz Mobility for the full year is seen at the lower end of the 12% - 14% range and is expected to remain at a similar level in Q4 as it was in Q3. The effects of the deteriorating interest margin are expected to have reached their low point in Q4. Operating expenses are expected for the rollout of the Mercedes-Benz own-branded high power charging network. Without the increased operating expenses for charging, full-year adjusted RoE would be expected in the middle of the range.

The Mercedes-Benz Group expects revenue at the prior-year level. Group EBIT continues to be seen at prior-year level. Free Cash Flow of the industrial business continues to be expected slightly above the prior-year level.

Toto Talks United States

We have a busy couple of weeks coming up as the season heads towards its conclusion, starting with a triple-header in the USA, Mexico and Brazil.

The last round in Qatar was a case of what might have been. As a team, you never want to see your cars collide. It was frustrating to leave a lot of points on the table, particularly as the pace of the car was strong. It was encouraging though to see how the drivers and the team reacted. Both Lewis and George know the team comes first and do not ever intend to jeopardise that. I am sure we will all grow from this moment. We're now focused on Austin and making sure we get the most out of each upcoming weekend.

It's always great to race at the Circuit of the Americas. There's a fantastic atmosphere and the city welcomes F1 with open arms. COTA is one of the most challenging modern tracks and a real thrill for the drivers. We'll be bringing a modified floor, which is the last significant update we will take to the track this year. It will hopefully bring a small gain but more importantly, is another milestone in setting our development path for W15.

The battle for second in the Constructors' has become more intense in recent races. We will keep our heads down, keep pushing and aim to score as many points as we can to increase our advantage.
Fact File: United States Grand Prix

    The Circuit of the Americas is one of the bumpiest tracks of the year due to subsidence.
    The bumps also tend to move and change year-on-year. The track is regularly ground down and resurfaced to try and smooth these challenges.
    Several corners at COTA were inspired by iconic turns from European tracks.
    These include Turns 3 to 6, which are modelled on the Maggotts and Becketts section of Silverstone. Turns 12 to 15 replicate Hockenheim's stadium section and Turns 16-18 are similar to Turn 8 at Istanbul Park.
    The track requires moderately high downforce and has a large DRS effect. That allows teams to run reasonably large wings as a result.
    The first sector is incredibly challenging and technical. A lot of time can be gained and lost through the interconnected series of corners.
    COTA is one of nine tracks on the calendar that is fully anticlockwise. The others are: Jeddah, Miami, Imola, Baku, Singapore, Interlagos, Las Vegas, and Yas Marina.
    It is one of the busiest laps for gear changes, with 70 recorded across one circuit. That is the third highest total of the year, behind only Bahrain and Baku.
    The entry to Turn 1 features the single biggest corner elevation change of the season. The track has a man-made climb 30 metres upwards in just over 200 metres of track.
    For comparison, COTA's Observation Tower measures in at 77 metres tall.
    Several corners feature wide entries to encourage different lines and promote overtaking. These include Turns 1, 11, and 15.
    The latter also forces the drivers to brake whilst the car is turning at the same time. This can cause lockups if pushing the tyre over the limit of adhesion.
    The weather in Texas can be unpredictable, particularly the temperatures. They can vary from single digits on cool mornings to reaching into the 30s on the very warmest days.
    This weekend will see the fifth F1 Sprint event of the season. The final sprint format of the year will take at the São Paulo Grand Prix in Brazil.

With the world’s first public crash test involving two fully electric vehicles, Mercedes-Benz is going above and beyond not only the legal requirements but also those of the ratings industry. Euro NCAP stipulates a frontal impact test using a 1,400 kg trolley with an aluminium honeycomb barrier replicating the front of another vehicle. In accordance with the specifications, the test vehicle and the trolley collide with an overlap and at a speed of 50 km/h. Mercedes-Benz, however, used two real vehicles, an EQA and an EQS SUV, which are significantly heavier at around 2.2 and three tonnes respectively. In addition, both models were faster, each going 56 km/h, which meant that the overall crash energy was considerably higher than required by law. The vehicles’ extensive deformation following the collision may seem alarming to the non-expert. For the Mercedes-Benz engineers, however, it shows that the vehicles were able to effectively absorb the energy of the collision by deforming. As a result, the passenger safety cell of both electric models remained intact and the doors could still be opened. In an emergency, this would make it possible for occupants to exit the vehicle on their own or for first responders and rescue personnel to reach them. The high-voltage system in the EQA and the EQS SUV switched off automatically during the collision.

The crash test at the Group’s Technology Centre for Vehicle Safety in Sindelfingen demonstrates Mercedes‑Benz’s real-life safety philosophy: To make cars that hold up not only in defined crash test scenarios, but also in real-life accidents. The test scenario involving a speed of 56 km/h and 50 percent frontal overlap corresponds to a type of accident common on rural roads, for example during a failed overtaking manoeuvre. The speed selected for the test takes into account that, in a real-life accident, the drivers would still try to brake before the worst case of a collision.

“Safety is part of Mercedes-Benz’s DNA and one of our core commitments to all road users. And to us, protecting human lives is not a question of drive system. The recent crash test involving two fully electric vehicles demonstrates this. It proves that all our vehicles have an equally high level of safety, no matter what technology drives them. We are working hard to achieve our vision of accident-free driving, which goes beyond the “Vision Zero” objectives set by the WHO and the United Nations Regional Commissions. We don’t just want zero traffic fatalities by 2050 and a halving in the number of traffic fatalities and serious injuries by 2030 compared to 2020. Our goal by 2050 is zero accidents involving a Mercedes-Benz vehicle.”
Markus Schäfer, Member of the Board of Management of Mercedes-Benz Group AG, Chief Technology Officer
Dummy readings indicate risk of occupant injury

The EQA and the EQS SUV each carried two adult dummies – a total of three females and one male. Analysis of the up to 150 measuring points per dummy indicate a low risk of serious to fatal injury. This means that the defined crumple zones and advanced restraint systems in both vehicles offer very good protection potential for the occupants in a crash of this severity. All safety equipment, such as airbags and belt tensioners with belt force limiters, worked as intended. The crash test thus confirmed the results that the engineers had previously calculated in numerous computer simulations. Real-life vehicle testing always also serves as a final comparison with the simulations. Furthermore, the crash test clearly shows that compatibility (i.e. the interaction of the deformation structures of different vehicles involved in an accident) is part of the safety requirements for Mercedes-Benz cars.

“This crash test involving two electric vehicles, which we have shared publicly for the first time in this way, underlines our commitment to building the world’s safest vehicles. The four female and male dummies complied with the biomechanical limits in this extremely severe crash. This demonstrates our expertise in electric vehicle safety.”
Prof. Dr. Paul Dick, Head of Vehicle Safety at Mercedes-Benz AG
Female dummies in the driver’s seat

Another focus of the crash test was the type of dummy that the safety experts placed in the driver’s seat of both vehicles – the Hybrid III 5th Percentile Female, which is the female dummy currently used in the automotive industry for frontal collision tests. It corresponds to a woman of approximately 1.5 metres tall and weighing around 49 kilograms. According to the underlying statistics, only five percent of women worldwide are smaller or lighter. For many years, Mercedes-Benz has used frontal crash tests with fifth percentile female dummies[1] in the front seat to design its protection systems for the widest possible range of customers. Ratings by consumer protection associations as well as various legal requirements worldwide now include specifications for testing with fifth percentile female dummies. Another fifth percentile female was a passenger in the EQA. In the passenger seat of the EQS SUV was a Hybrid III 50th Percentile dummy, representing a 78-kilogram male of average height.

“We have been using female dummies at Mercedes-Benz for more than 20 years. However, they are not human dolls, but measuring instruments. In designing the measuring equipment, the weight and size of the dummy genders are derived from real-life human data, with the female dummy corresponding to female anatomy.”
Dr. Hanna Paul, Head of Dummy Technology, Mercedes-Benz AG
Special high-voltage safety concept

Mercedes-Benz has developed a multi-stage high-voltage protection concept for its electric vehicles. The system has eight key elements to ensure the safety of the battery and all components with a voltage above 60 volts. Examples include separate positive and negative wiring and a self-monitoring high-voltage system that automatically switches off in the event of a serious collision. In many cases, the company’s high internal safety standards exceed the legal requirements or those of consumer protection organisations. Mercedes‑Benz has impressively demonstrated this once again with the latest crash test.
“Safety Symphony” – new campaign shows the split seconds of the crash in super slow motion

A new campaign on electric vehicle safety focuses on the groundbreaking frontal crash involving the EQA and the EQS SUV. The campaign shows the split seconds of the crash, which lasts no longer than the blink of an eye, in super slow motion. What really matters in this fraction of a second during an accident is that all safety systems work together in a coordinated manner at just the right time to protect life as best as possible. This interaction of all safety systems and concepts is like a classical symphony. Here, too, the perfect harmony of all elements creates something truly great. That’s why the new campaign film is entitled “Safety Symphony”. In an unprecedented way, it visualises artistically how the different safety systems work together as one at just the right time.

The film and numerous related assets will appear on all Mercedes-Benz social media channels later this year with the hashtag #allforsafety. The target group and channel-specific assets range from video clips and interactive quizzes to an informative documentary about the crash test of the EQA and EQS SUV.
The Technology Centre for Vehicle Safety as one of the most modern in the world

Since 2016, Mercedes-Benz has been conducting crash tests at the new Group-owned Technology Centre for Vehicle Safety in Sindelfingen. The test centre is one of the largest and most modern of its kind in the world. It has three highly flexible crash lanes leading into a large, support-free area measuring over 8,000 square metres (90 m × 90 m). Its capacity is also impressive: In Sindelfingen alone, Mercedes-Benz conducts up to 900 crash tests and 1,700 sled tests every year.

The brand with the star has over 60 years of experience with crash tests. Along with analysis by the Group’s Accident Research unit, this experience forms the basis for the real-life safety philosophy. Founded in 1969, the Accident Research unit analyses accidents involving modern Mercedes-Benz vehicles. The aim is to understand how accidents happen and which safety systems could have prevented them or reduced their severity.

[1] In medical statistics, a percentile is a measure of the dispersion of a statistical distribution sorted by rank or size of individual values. For example, if the size of a 12-month-old child is the 10th percentile, this means that 90% of the children of the same age and gender are larger and 10% are smaller.

Leinfelden/Gersthofen – Working with Mercedes-Benz Truck customer driver test team, GLSG Gersthofer Logistik- und Speditionsgesellschaft mbH is launching a pioneering test program using a specially equipped Mercedes-Benz Actros. These everyday use tests focus primarily on assistance systems that will be launched on the market in a wide range of Daimler Truck trucks and buses from 2024 onwards. The main areas of interest are the Active Brake Assist 6, the new Frontguard Assist, Active Sideguard Assist 2, Active Drive Assist 3 and Traffic Sign Assist. One thing is certain: assistance systems must be comprehensively tested before they can enter series production.

The systems have already been extensively trialled at the Daimler Truck development and testing centre in Wörth am Rhein in preparation for this program. High-tech test equipment was used to minutely explore the limits of the various safety features in terms of driving dynamics. Furthermore, up to 60 Daimler Truck vehicles undergo endurance testing throughout the year around the world. The total distance travelled during the validation of the new systems before the first customer rollout will be around five million kilometres between 2020 and the end of 2023.

All this collected experience will now be integrated into the customer tests before the vehicles are released on the market. One partner involved is Roman Mayer Logistik Group from Gersthofen, compnay owner Roman Mayer says: "We are delighted with this relationship of mutual trust and welcome the opportunity for our drivers to give their feedback directly to Mercedes-Benz Trucks. We hope this will enable us to make a significant contribution to improving the performance of the trucks."

The test truck is equipped with a special switch that can be pressed by drivers (who will, of course, have been suitably trained beforehand) if the vehicle does not respond as expected, if problems occur or if they can suggest an improvement. The information sent from the vehicle is then checked by the engineers at Daimler Truck and the recorded camera images and vehicle data are evaluated.

The truck is also equipped with extra cameras in addition to the MirrorCams. This makes it possible to understand the precise situation when analysing the recordings. For example, if Active Sideguard Assist (ASGA) 2 reacts if there is a pedestrian or cyclist next to the vehicle when making a right turn. Or how Active Drive Assist (ADA) 3 automatically guides the truck back into its lane if the driver wants to pull out to the left and overtake, for example, but has not noticed a vehicle approaching from behind. The new Frontguard Assist can also give the driver visual and acoustic warnings about unprotected road users directly in front of the truck, especially in busy traffic, such as when pulling away or at junctions. In combination with ABA6, it can even react autonomously by braking automatically in the event of an impending collision.

These systems go beyond the legal requirements in many areas showing that Daimler Truck is once again setting new standards for safety. The new 270-degree fusion technology of the sensors generates an almost complete panoramic monitoring field around the vehicle, providing even better protection, particularly for more vulnerable road users.

The test phase will be closely supervised by the Mercedes-Benz Truck customer driver test team and will continue until the start of series production. During the test phase, the truck in question will be used within the GLSG local transport area. A wide range of everyday situations can be evaluated in detail from the perspective of a professional driver thanks to built-in measurement technology and constant contact with the driver.

More about Roman Mayer Logistik Group:

Roman Mayer Logistik Group is a service provider offering a full range of contract logistics, warehousing, consignment, process optimisation and packaging. As one of the most important employers in the region, the company it is keen to support its employees, their training and their development in a variety of areas. Roman Mayer Logistik Group  brings together innovative talents and the longstanding expertise of veteran colleagues to create an environment that meets the complex requirements of logistics and its customers.