George Russell

I was very happy with my final effort in Q3. It was a really strong lap and overall, it was a good session from my point of view. It is obviously annoying when you are one millisecond behind one of your competitors, but I think that was the maximum we had today. I think P6 is therefore a fair result. It is very difficult to pass here so unfortunately, I’m not forecasting lots of overtakes tomorrow. I hope to be proven wrong though and we can gain some positions.

The car is feeling much better than it has done in recent races. Of course it is all about lap times, so we just need to keep working away and improving. We’ve seen how others have progressed and that gives us encouragement.
Lewis Hamilton

The car felt really good on Friday but today, I was struggling to find that same level of grip. It was frustrating and I think the small changes we made going into Qualifying had quite a big impact. George did a great job though and for him to be only four tenths off pole is clearly a good step forward for us. Unfortunately I was just lacking some pace so couldn’t quite match that.

Tomorrow we are likely looking at trying to make up a few positions. We will do some work tonight to see if we can improve anything but it’s very hard to overtake here so, unless something out of the ordinary happens, we will only be able to make small gains.
Toto Wolff, Team Principal & CEO

When you look at the gap to the front, and our closest competitors around us, you can see progress. P6 and P8 are not the positions we want to be. We’ve been saying that for a while, but we can see the advantage others have closing. It takes time to do that, so we must be patient and that’s the reality at the moment.

We know we have developments in the pipeline that will improve the balance of the car. Even though our positions today are not good enough, we are pointing in the right direction. Tomorrow, we will be focused on maximising the package we currently have and aiming to score some decent points.
Andrew Shovlin, Trackside Engineering Director

We've worked hard to try and close the gap to the front over the last few races. Encouragingly, there are signs we're making progress, but we know we’ve still got a long way to go. Neither driver had two new sets of the Soft tyre left by Q3. This may have cost each a place on tomorrow's grid when you look at how close the gaps are to the cars ahead. Ultimately though, P6 and P8 are about where our current pace is. It is encouraging that the car’s balance around the lap has been improved this weekend.

We will now have to wait and see where the pace falls out in the race tomorrow. There did look to be some tyre degradation on Friday, so that should help create some opportunity. It is difficult to overtake here at Imola though so it will likely take some good fortune for us to be challenging for the podium spots.

Toto Talks Imola

We are now one quarter of the way through the season. The first six races have not been straightforward, but we have built a clear understanding of where we need to improve and shaped a clear path forward to tackle that. It will be several races before we see this bear fruit, but everyone is working hard to bring them as soon as is possible.  In the meantime, we will be looking to maximise the package we have. We are bringing some more updates to Imola and hopefully they push us in the right direction.

After two Sprints in a row, we now go back to the more usual weekend format. It affords us more time to refine the set-up, but Imola is still a demanding circuit that challenges both the car and the driver. It has several fast and flowing sections, but some low-speed corners too and a tricky, bumpy surface. It’s narrow, which makes overtaking difficult, and has plenty of elevation. All that combines to provide a stern test and one we’re looking forward to.

We will of course take the time along with the rest of the paddock to reflect and remember Roland Ratzenberger and Ayrton Senna, who we lost 30 years ago. As a team, we will also be marking the 100th anniversary of Mercedes-Benz’s victory in the 1924 Targa Florio. The Mercedes-Benz Classic team have done a superb job restoring the original car and we can’t wait to see it running to the Trofeo Bandini awards on Wednesday – and then on track during the weekend.
Fact File: Emilia Romagna Grand Prix

    Construction of the Autodromo Internazionale Enzo e Dino Ferrari first started in 1950 and the circuit hosted its debut race in 1953.
    The track has hosted F1 races under three different names: the San Marino Grand Prix, Italian Grand Prix and Emilia Romagna Grand Prix.
    This weekend will be Mercedes’ 300th F1 Grand Prix. The team contested 12 races across 1954 and 1955 before rejoining the sport as a works team at the start of 2010.
    Having hosted a race every year between 1980 and 2006, the circuit disappeared off the calendar in 2007, but returned in 2020 as the Emilia Romagna Grand Prix.
    The team captured its seventh consecutive World Constructors’ Championship with a 1-2 at Imola in 2020.
    The 2023 edition of the race was cancelled due to devastating flooding around the track and in the surrounding region.
    At 548 metres, the distance spent under the pit lane speed limit at Imola is the longest on the calendar.
    It takes drivers nearly 25 seconds to navigate during a stop in the race.
    The race also has the highest level of fuel consumption seen on the 2024 calendar.
    With an average ambient air temperature of 14.8 degrees, the race could also be described as one the coldest of the season.
    Changes have been made to the track for 2024. The run-off area at T9 has been removed and replaced with a gravel trap, while the asphalt run-off area on the exit of Turns 11, 12, and 13 has been reduced in favour of gravel too.
    The exit of the Turn 14-15 chicane is now also a gravel trap instead of a tarmac run-off area.

Rounding off two days of celebrations following the launch of a new race car emoji, Lewis, the team, and our Official Messaging Partner WhatsApp took over Fifth Avenue in New York City for a thrilling demonstration run.

The seven-time World Champion got behind-the-wheel of W12 and was joined by a life-sized version of the recently launched emoji race car. The run marked the first-ever live demonstration of an F1 car in Manhattan and also marked WhatsApp’s double-digit growth in the US.

Lewis said: “That was epic! It has always been a dream of mine to drive an F1 car down Fifth Avenue in New York City. Seeing the crowds and everyone’s excitement was awesome. To do something like this, when you think about the incredible history of this city, is incredible.

”I want to say a huge thank you to WhatsApp and the Empire State Building for making it possible. I use WhatsApp to communicate with all my family and friends, staying in touch when we’re travelling the world. To collaborate with them on a day like this is something I’ll never forget.”

It caps a stunning weekend of events in the city that never sleeps, including the lighting up of the Empire State Building, a dynamic light show, car displays, and pit stop exhibit.

Toto added: “I’ve done many events in the past 12 years, but this tops it all. Seeing Fifth Avenue shut down for a Mercedes-AMG PETRONAS F1 Team car to run was spectacular. That is true even by New York standards!

“To be able to do this in celebration of our partnership with WhatsApp, and showcasing our relationship, is fantastic. WhatsApp is our default communication tool, end-to-end encrypted and safe. It is vital for our team and our partnership is a natural fit.”

Mercedes-Benz Group AG (ticker symbol: MBG) reported Free Cash Flow from the industrial business at a solid €2.23 billion (Q1 2023: €2.16 billion) in the first quarter with strong cash conversion including positive working capital developments. Group Earnings Before Interest and Taxes (EBIT) totalled €3.9 billion (Q1 2023: €5.5 billion), reflecting lower raw material prices, tight cost control and a strong performance at Mercedes-Benz Vans. These effects partially offset lower sales at Mercedes-Benz Cars where supplier bottlenecks and model changeovers in the Top-End segment also led to a less favourable model mix. Group revenue came in at €35.9 billion (Q1 2023: €37.5 billion). 

“Mercedes-Benz delivered a solid Free Cash Flow in the first quarter thanks to our disciplined go-to-market approach, our desirable products and despite the volatile economic environment and external challenges. While we remain vigilant about the global macroeconomic and geopolitical outlook, we confirm our full-year financial targets for 2024.” 
Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG

Investments, Free Cash Flow, Net Liquidity

The Free Cash Flow from the Industrial Business in the first quarter reached €2.23 billion (Q1 2023: €2.16 billion), supported by an adjusted Cash Conversion rate of 1.0 at Mercedes-Benz Cars.

The Net Liquidity from the Industrial Business rose by 6% to a strong and very comfortable level of €33.6 billion (end of 2023: €31.7 billion). This included a share buyback of approximately €300 million in the first quarter. The Group’s investments in property, plant and equipment in the first quarter totalled €0.7 billion (Q1 2023: €0.8 billion). Research and development expenditure fell to €2.2 billion (Q1 2023: €2.5 billion). 
Divisional results

Earnings Before Interest and Taxes at Mercedes-Benz Cars reached €2.5 billion (Q1 2023: €4.1 billion) and resulted in an adjusted Return on Sales of 9.0% (Q1 2023: 14.8%) mainly due to a temporary decline in volumes and model transitions in the Top-End segment as well as higher lifecycle management costs to keep products at the cutting edge. Top-End vehicles were constrained by model changeovers of the G-Class as well as the Mercedes-AMG derivatives of the E-Class and GLC, as well as supply-chain bottlenecks. Mercedes-Benz Cars sales reached 463,000 units (-8%) in the first quarter, with solid results in all regions except Asia. Despite a decline in S-Class sales, it remains the undisputed leader in all key regions.

Overall, pricing remained at a high level in Q1. Sales are expected to increase in the coming quarters with the Top-End vehicle mix expected to improve in the second half of the year. The EV adoption rate has slowed across the industry. In the transition from ICE to BEV vehicles, Mercedes-Benz plug-in hybrids are expected to play an important role. In Q1 Mercedes-Benz initiated BEAT26, an efficiency program to lower material costs in procurement, in close collaboration with its suppliers.

Mercedes-Benz Vans posted a strong start into the year with healthy net pricing supported by strong product substance leading to very good financial results. The adjusted Return on Sales for Mercedes-Benz Vans rose to 16.3% (Q1 2023: 15.6%) thanks to increased global sales (+7%) driven by positive product structure, especially from commercial Vans (+11%). Regionally, the important markets China (+27%) and the United States (+15%) contributed to the strong Q1 sales. Revenue increased by 6% to €4.9 billion (Q1 2023: €4.6 billion) in the first quarter and the Earnings Before Interest and Taxes increased by 22% to €933 million (Q1 2023: €762 million). BEV sales declined but are expected to rise with the full availability of the newly launched facelifts of the EQV, eVito and the new eSprinter. 

Compared to the first quarter of the previous year, Mercedes-Benz Mobility almost doubled its new business volume for BEVs to €2.0 billion (Q1 2023: €1.2 billion). Overall, at the end of March 2024, the contract volume amounted to €134.7 billion and is thus at the same level as year-end 2023 (FY 2023: €135.0 billion). At €14.8 billion, the new business of Mercedes-Benz Mobility is also on prior-year level (Q1 2023: €14.7 billion). The adjusted EBIT decreased to €279 million mainly due to a lower interest margin and higher cost of credit risk (Q1 2023: €539 million). As a result, the adjusted return on equity (RoE) decreased to 8.5% (Q1 2023: 15.6%).

Share buyback execution update

On 21 February 2024, Mercedes-Benz Group AG resolved to implement a share buyback policy. Based on this policy, the future Free Cash Flow from the Industrial Business (as available post potential smallscale M&A) generated beyond the approximately 40% dividend payout ratio of Group Net Income shall be used to fund share buybacks with the purpose of redeeming shares. As part of a buyback programme announced in February 2023, Mercedes-Benz Group AG intends to acquire own shares worth up to €4 billion (not including incidental costs) on the stock exchange and to then cancel them. Repurchases for this programme are well on track. A further €3 billion share buyback programme, announced in February 2024, is now scheduled to begin in May 2024 and then run in parallel with the buyback program announced in February 2023. Both buyback programs are expected to be completed in the first quarter of 2025. By the third quarter 2024, buybacks are expected to have reached a total of €4 billion and to then reach up to €7 billion in Q1 2025 before the Annual General Meeting that year.
Outlook

The economic situation and automotive markets continue to be characterised by a degree of uncertainty. In addition to unexpected macroeconomic developments, uncertainties for the global economy and the business development of Mercedes-Benz Group may arise from geopolitical events and trade policy. 

The company sees unit sales of Mercedes-Benz Cars at the prior-year level. Current supply bottlenecks are on the way to easing in regard to the GLC and E-Class, with further improvements expected. Sales levels in the first quarter are seen as the trough, with second quarter volumes expected to be better. Total unit sales are still seen at the prior-year level with Core segment sales benefiting from the E-Class and GLC this year, and Top-End Vehicle sales improving from first-quarter levels, due to product transitioning. 
In Europe overall, sentiment is seen unchanged. 
In China availability will improve, especially for the E-Class. Thanks to very good acceptance of our current product lineup and availability, growth potential is seen from the portfolio and availability side. However, the overall market is seen with caution.   
In the United States, solid momentum is seen for sales and demand. A positive-year-over-year development is expected because of SUV’s and the GLC in particular.   
The xEV share is expected to remain at approximately 19% - 21% of new car sales, even as production of the all-electric smart fortwo model came to an end in March.
The adjusted Return on Sales (RoS) is expected in the range of 10% - 12%. An increase in sales volume over the coming quarters and an improvement in product mix in the second half of 2024 is expected. Mercedes-Benz wants to hold and defend pricing at current levels. 
Some material tailwinds on raw material costs are seen and further headwinds on supply-chain related costs are expected. On a full-year basis a tailwind is expected on material costs.
Research & Development spending is expected to be flat. Investments in property plant & equipment are seen significantly higher. 
The adjusted cash conversion rate (CCR) corridor for Mercedes-Benz Cars remains at 0.8 to 1.0. Cash generation is expected to continue. 

Strong Q1 performance at Mercedes-Benz Vans provides a comfortable cushion for the remainder for the year. Market demand is expected to soften in the private and commercial van segments. Considering current macro developments and uncertainties in regard to the second half of 2024, the adjusted RoS is expected to remain in the range of 12% - 14%. Full-year guidance on sales, xEV sales, research and development as well as investment in property, plants and equipment are unchanged. The adjusted CCR for Mercedes-Benz Vans is seen remaining at 0.6 to 0.8.

The adjusted Return on Equity at Mercedes-Benz Mobility is seen unchanged in the range of 10% - 12%. Q1 is seen as the trough, with improvements expected over the second half of 2024, despite increasing ramp-up costs for charging infrastructure. Coming from 8.5% adj. RoE in Q1, positive effects from increased acquisition margins are expected on the portfolio margin. The cost of credit risk is seen improving from Q1 levels but is expected at an overall higher level compared to 2023.   

The Mercedes-Benz Group confirms its group guidance. Group revenue in 2024 is expected to remain at the prior-year level, with Cars, Vans and Mobility seen unchanged. Group EBIT is expected to be slightly below the 2023 level, resulting out of divisional guidances. Group Free Cash Flow from the Industrial Business is seen slightly below the very strong levels from 2023, due to lower EBIT at Cars and Vans and lower CCR at Vans.

Link to press information “Sales figures Q1 2024”: media.mercedes-benz.com/sales

Link to capital market presentation Q1 2024: group.mercedes-benz.com/q1-2024/en

[1] The all-new Mercedes-Benz G 580 with EQ Technology (combined energy consumption: 30.3-27.7 kWh/100 km | combined CO₂ emissions: 0 g/km | CO₂ class: A). The specified values were determined in accordance with the WLTP (Worldwide harmonised Light vehicles Test Procedure) measurement method. The ranges given refer to ECE markets. The energy consumption and CO₂ emissions of a car depend not only on the efficient utilisation of the fuel or energy source by the car, but also on the driving style and other non-technical factors.

George Russell

We were struggling throughout the whole of Qualifying to get the tyres into the right place. They work within a very small window, and we saw with Lewis in Q2 that, if we were able to get them in a better place, we had good speed. This is the same story for everyone though. We have to be realistic and, unless we get the perfect lap, P7 and P8 is about where our car is at currently. We know we have work to do and hopefully tomorrow will be better.

In the Sprint earlier in the day, I made a good start but got caught on the outside and lost a few positions. After that, I was stuck in a DRS train, so it was quite a processional race. Hopefully we will have a better Grand Prix on Sunday and move forwards.
Lewis Hamilton       

Overall, it’s been a much more positive day than yesterday. That said, these tyres are so sensitive and trying to get them to work consistently lap-to-lap is a challenge. The track temperature and grip was similar throughout Qualifying but we still struggled to deliver the maximum potential on each lap. We had that glimpse of what was possible at the end of Q2, but we couldn’t deliver it in Q3. It’s an area we are focused on improving.

I gave it everything in the Sprint; it was a tough battle out there. Contact is never intentional at the first corner, and I went for a gap. It closed quickly though and several of us connected. After that, I was fighting hard to get past the Haas of Magnussen, and I enjoyed the racing. The penalty was unfortunate, and it was a shame that it cost us that final point.
Toto Wolff, Team Principal & CEO

We have seen once again how difficult it is to get the tyres in the right window. We of course don’t blame the tyres for that, and we need to look at ourselves and our car to understand how we can get the tyres more consistently into the correct operating window. We were able to get it right at the end of Q2 and Lewis’ was P3, with just 0.15s off P1. Unfortunately, we couldn’t replicate that for Q3.

In the Sprint, cars that were quick on the straight but not necessarily through the corners were able to hold position. We had more pace but couldn’t show it. We therefore made some changes after the Sprint that will hopefully help us in the race tomorrow. We are starting slightly further forward than we were this morning so let’s see what we can do.
Andrew Shovlin, Trackside Engineering Director

The Sprint was disappointing, but we were realistic in our expectations given our grid positions. George lost out because of the first corner incident and couldn't break through the DRS train. Lewis fared better off the line but then spent most of the race battling to get past the Haas of Magnussen. We knew we were on a high wing level and that would have been OK if we'd qualified further forward. Unfortunately, when you are racing in the middle of the pack, it isn't ideal.

Going into Qualifying, we modified the set-up slightly and changed our wing level. The car was improved but it was still difficult to land the tyres in the right window. We don't seem to be the only team struggling with that but when we got it right, the pace was strong. That said, we are well aware that we have a lot of work to do in order to improve the car. If we can do so, that should help us deliver that stronger pace more consistently.