George Russell

I’m very happy with how today went. We struggled in the hotter conditions last year, and that was true yesterday. That was a very useful day of learning for us; we went away overnight, and the team worked hard to try and understand why we were lacking on the Soft tyre compared to the Medium and Hard compounds. We found some areas of improvement that were beneficial, and we can hopefully continue pushing in this direction.

Whilst we are still a few tenths behind the McLarens, we’re starting P4 for the first race of the season, and that is encouraging. It could have potentially been a little better too as Q3 was tricky for us. I lost three tenths in the last couple of corners on my first push lap and didn’t improve significantly on my final effort.

Finally, whilst Kimi was unfortunate to be knocked out in Q1, he has shown great signs of speed this weekend and he’ll soon be right up there. Tomorrow is a new day and, with the weather forecast showing rain, it’s going to be all to play for. Hopefully, we can be in the mix.
Kimi Antonelli

That was an unfortunate Qualifying session to start the season. As I came through turn six on my first push lap on the Soft tyre, there was some gravel on track and I ran slightly wide. It was not enough to really impact my lap time, but the car hit the exit kerb harder than I expected and I suffered some significant floor damage. I could feel the car bottoming on the straight and costing me a lot of performance. Without the damage, I am sure it would have been a very different story for us.

Starting P16 is of course not ideal. That is particularly true when you look at our pace in FP3 as I think we could have been challenging near the front of the grid. It is what it is though and now we look ahead to tomorrow. The forecast is for rain and that will hopefully present us with some opportunities. I’m looking forward to it and getting my first F1 race under my belt.
Toto Wolff, Team Principal & CEO

We were in the mix today and that was encouraging. We showed improved speed in FP3 having made some changes overnight. Whilst we looked like we were in the fight for pole position at moments in Qualifying, the McLarens were very impressive; I think it’s fair to say that they had a couple of tenths advantage over us on the optimal lap. Overall, it is a good start to the new season with the W16. It all looks close at the front, and we will see what we can do tomorrow.

Kimi was very unfortunate to suffer floor damage having run over the exit kerb at turn six. He didn’t run very wide yet suffered a big hit on the underside of the car and that caused him to lose a significant amount of performance. He put in a strong effort to try and hustle the car through to Q2, but it wasn’t quite enough. It is all beneficial for his learning though and he will now have an exciting race trying to come through the pack tomorrow.
Andrew Shovlin, Trackside Engineering Director

We had a solid start to the day in FP3. We looked to have made improvements to the car overnight and the drivers were happy with the overall balance. It looked like we could be in the mix at the front come Qualifying, although the pack at the front was very tight.

Whilst that did prove to be the case, we were slightly unfortunate not to get the perfect laps together when it mattered in Qualifying. George’s session ran to plan, as he progressed through to Q3. His first effort in the final segment put him P2, but he dropped back slightly in the final reckon to P4. With tomorrow’s forecast, there is still plenty of opportunity for him to move forward though and fight for the podium.

Kimi was more unfortunate having run over the exit kerb at turn six. That caused floor damage that impacted his performance significantly, both on the straights and in the corners. He did his very best to get the car through to Q2 but, even if he had been able to do so, it’s unlikely that we would have been able to make the necessary repairs to get him back out there. We can be encouraged by his progress through the weekend though, and the pace he has shown on both the single lap and the long run. Whilst he’s starting out of position, the wet weather may afford him the chance to make good progress up the field.

A new benchmark in terms of safety: The Mercedes‑Benz E‑Class has been awarded the overall safety title “Best Performer” in 2024 by Euro NCAP, making it the safest car tested last year.

To define the ‘Best in Class’, Euro NCAP experts calculate a weighted average of four areas of active and passive safety: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist Technologies. The E‑Class achieved standout scores across all these safety categories.

“Mercedes-Benz is synonymous for safety. We set the standard as true pioneer in vehicle safety. I am proud that Euro NCAP's 'Best Performer' award recognises our efforts to increase safety for all road users.”
Markus Schäfer, Member of the Board of Management of Mercedes‑Benz Group AG. Chief Technology Officer, Development & Procurement.

Euro NCAP (European New Car Assessment Programme) is an organisation made up of European transport ministries, automobile clubs and insurance associations. The organisation conducts crash tests and other safety evaluations.

Being awarded by an independent organization such as Euro NCAP confirms the very high performance level of the safety systems of Mercedes‑Benz. These latest top results once again confirm the company’s competences in the development of driver assistance and safety systems.

Toto Talks Australia

We will write the opening lines of our next chapter at the Australian Grand Prix. It's an exciting time as we build upon the incredible legacy of the Mercedes brand in motorsport. We will be striving to set new benchmarks and fulfil new dreams in the years ahead. That will take every single one of us: from the drivers to the mechanics, engineers, everyone at Brackley and Brixworth and, of course, our fans.

That journey is the inspiration for our season launch film. It is a celebration of everything that makes Mercedes what it is: Innovation; Pushing the boundaries; The pioneering spirit of our founders. The same DNA that drives us forward today. With George and Kimi, two homegrown talents from our junior programme graduates, we have a strong driver line-up that combines experience, youth, and raw speed. It is an exciting duo that will lead us into our next era.

As a team, we had an uphill challenge over the winter. Our competitors finished 2024 strongly and we know that Ferrari, Red Bull, and McLaren in particular, should have a performance advantage over us initially. We can be pleased with the work we have done in the off-season, and the test in Bahrain. Both drivers commented favourably on the W16 after the three days, and we seem to have made improvements. Of course, the only thing that matters is how we measure up against the stopwatch relative to our competitors. We will certainly begin to get a clearer picture on that this weekend.

Australia is always a great place for a race. The circuit is challenging for the drivers and a real test for the car. The fans are always out in force and Melbourne is a fantastic venue to kick off the new season. I remember my first race with the team there in 2013; we held a photoshoot with our drivers on St Kilda Beach and there was a palpable sense of renewed energy. There is also always a start of term feel in the paddock and it therefore feels like an appropriate location to launch our next chapter. As George says at the end of the film: 'This is just the beginning.' And we are excited for what lies ahead.
Fact File: Australian Grand Prix

    The Albert Park Circuit, modified prior to 2023 and thus shortened to 5.278 km, is a temporary track partially run on public roads. As part of the modifications, new tarmac was laid.
    Melbourne has the shortest pit lane on the calendar at just 281 metres. Cars therefore spend only about 17 seconds at pit lane speed.
    A lap of Albert Park sees a driver make just 35 gear changes. This is the second-lowest total on the 2025 calendar after Monza.
    71% of the lap time is spent at full throttle – also the second highest after Monza.
    The Turn 9-10 section of the lap will submit drivers to the highest Maximum Lateral G load of the season, at 5.1

    At the exit of Turn 6/Apex of Turn 7, the kerb has been replaced by a ‘negative’ kerb, designed to reduce the risk of accidents there seen in previous years.
    The barrier on the left-hand side has also been profiled to address this.
    The pit exit line has been repainted back to its 2018 configuration. The exit line now reaches further into the pit straight, enabling cars more run as they leave the pits.
    At 281 metres, the pit lane at Albert Park is the shortest on the 2025 F1 calendar. Cars will only spend 12.6 seconds driving through the pit lane when making a stop this weekend, quicker than any other track visited this season.

    This will be the 23rd time that Albert Park has hosted the opening Grand Prix of an F1 season, and the first time since 2019 it has raised the curtain of the F1 season.
    The Australian Grand Prix was the last race of the 1995 season, and the first of the 1996 - the only time in history the same Grand Prix has taken place in consecutive races.
    Mercedes has four wins at Albert Park. Nico Rosberg (2014 & 2016), Lewis Hamilton (2015) and Valtteri Bottas (2019)
    George made his F1 debut in Melbourne in 2019 for Williams. He scored his first podium for our team at the track in 2022.
    This will be Kimi’s first F1 race, and he will be the third youngest driver to ever start an F1 Grand Prix when the lights go out on Sunday, at 18 years, 6 months, 18 days.
    There is a considerable time difference between Melbourne and the team back at Brackley and Brixworth supporting remotely, adding another level of challenge to the weekend.

Affalterbach/Qatar. On Friday, February 28, the first race of the 2025 FIA World Endurance Championship (FIA WEC) will take place at the Lusail International Circuit in Qatar. Mercedes-AMG is represented for the first time in the series, which has been held under the umbrella of the FIA since 2012. Two Mercedes-AMG LMGT3 will be fielded by the Italian Customer Racing Team Iron Lynx in the long-distance classic. To participate, the car had to meet special homologation criteria in order to ultimately compete as a Mercedes-AMG LMGT3.

To ensure that Iron Lynx is optimally prepared for the season opener, the team covered 3327 kilometers last Friday and Saturday. The official test days were mandatory for all 36 registered vehicles – 18 hypercars and 18 LMGT3. Two test sessions were held in each case. The two Mercedes-AMG LMGT3 ran without technical problems. This allowed drivers and team to get used to the new conditions.

The #60 Mercedes-AMG LMGT3 will be driven by Matteo Cairoli, Matteo Cressoni and Claudio Schiavoni (all ITA). This trio is entering its fifth FIA WEC season together. The #61 car will be driven by Lin Hodenius (NED) – at 18 years old, he is the youngest driver in the field – Mercedes-AMG Performance driver Maxime Martin (BEL) and Christian Ried (GER), who has been involved in the World Championship every season in the current era.

Stefan, the last three months have been very intense. Both the team and the drivers were first in action with the Mercedes-AMG LMGT3 at the Prologue. How did the program go from your perspective?

Stefan Wendl: “The Prologue in Qatar was very effective. We are pleased that the Mercedes-AMG LMGT3 worked perfectly from a technical point of view. The new technical regulations of the IMSA, where torque sensors have also been in use since this season, helped us to use them in the FIA/ACO competition with minor adjustments to the hardware. The many hours of preparation that have gone into both vehicles have definitely paid off. We had a very tight program to work through with all six drivers at the Prologue. All our colleagues on site and from the back office here in Affalterbach helped to test the elements that were included in the homologation under live conditions.”

The Mercedes-AMG LMGT3 is not only new for the team, but also for all drivers. What challenges does that bring with it?

Stefan Wendl: “All six drivers had the opportunity to test the car in advance. We covered a total of 3327 kilometers in Qatar last weekend. And every single kilometer is extremely important for the entire team, because in addition to the car setup, the Goodyear tires and the race track in Losail are relatively new to us. The asphalt at the Lusail Circuit and the many medium-fast corners are a challenge for the tires – you need a well-balanced car. We went through the data with the drivers after each stint and made adjustments. With Iron Lynx, we have a very experienced team as a partner, supported by our side with engineers and with Maxime Martin as a Performance Driver. The collaboration with Iron Lynx is off to a very good start. We complement each other perfectly: the team knows the championship, but not yet the car inside out. We know the car but are new to the championship.”

How do you rate the times from the prologue and what do you expect for the race in Qatar and the whole season?

Stefan Wendl: “During the prologue, we concentrated exclusively on the set-up of the cars, the familiarization of the drivers and the training of the team. Therefore, the times are not relevant for us at first. Realistically, I don't see us as favorites for the LMGT3 title in our first year of participation. But I hope that we will be able to win one or two races. For the first race in Qatar, we definitely need a few strategy options to be able to think ahead a little. We are just at the beginning of our collaboration with Iron Lynx. In the long term, I see a lot of potential.”

Mercedes-AMG Performance driver Maxime Martin, who has been part of the AMG line-up since the beginning of the year, already raced in the FIA WEC last season. His experience makes him an important component for Mercedes-AMG.

“The Prologue in Qatar went very well. The championship is new to Mercedes-AMG. Accordingly, we will still learn a lot over the course of the year. We used the 14 hours of testing to find the right balance of the car, to get to know the Goodyear tires, with which AMG does not yet have so much experience in racing, and to understand all the new systems - especially the torque sensors. The first sessions will start on Wednesday. I hope that we will find a good starting position for the race with our package. I can hardly wait to finally start the championship with Mercedes-AMG and Iron Lynx.”
Maxime Martin, Iron Lynx #61

Building the most desirable cars

A Mercedes-Benz is a Mercedes-Benz – no matter how it’s powered. This means: Every Mercedes is extraordinary. Its status derives from exceptional design, advanced technology, superb refinement and craftsmanship, a sublime ride and drivetrain, world class safety systems and outstanding digital solutions – be it a battery-electric vehicle (BEV), a hybrid, or a car with an electrified high-tech combustion engine (ICE). Mercedes-Benz will apply a coherent, status-oriented design across the entire portfolio and customers will primarily decide on a model – and then choose their preferred drive type. The all new CLA, which will be offered as both a BEV and an ICE variant, takes a big step in this direction. And there is more to come.

The concept offers drivetrain flexibility in the form of a pure electric car with benchmark range, consumption and charging performance; in addition to a highly efficient ICE variant using small transverse high-tech electrified engines.

Even though the designs will be almost identical, in the Core and Top-End Vehicles (TEV) segments, the rear-wheel-drive cars will be based on separate, uncompromised BEV/ICE concepts. Cutting-edge BEV and ICE models can exploit their respective strengths, without sacrificing space, elegance, convenience, or efficiency. Thanks to intelligent modularisation, Mercedes can offer best-in-class roominess and perfect proportions while keeping a tight grip on costs and manufacturing flexibility.

By focusing on the most promising segments, Mercedes-Benz retains the ambition to defend margins as the BEV share increases. Mercedes-Benz plans to expand and protect the share of Top-End Vehicles (TEV) and aims to leverage the potential of its luxury brands such as G-Class, as the undisputed icon of adventurous luxury; Maybach as the epitome of sophisticated luxury and Mercedes-AMG as the performance luxury brand. The legendary G-Class family will be expanded with a new smaller version. Mercedes-AMG plans to outgrow the performance market, thanks to a heavily refreshed model lineup from 2026 onwards and a strategic evolution of its portfolio, which will include a next-generation, high-tech electrified V8 and dedicated high-performance electric models based on AMG.EA.
Biggest ever product launch campaign

Beginning with the all-new CLA this year, Mercedes-Benz will start the most intense product launch programme in its history, including the major upgrade of the S-Class in 2026 as well as a string of launches at Mercedes-AMG. Overall, Mercedes-Benz plans for dozens of new or refreshed models to reach markets until 2027.

The CLA will be offered with an electric drivetrain or a 48-volt electrified high-tech four-cylinder engine, paired to an electrified eight-speed dual-clutch transmission. The electric variant sets new standards in its class in terms of range, consumption and charging power, thanks to know-how transferred from the VISION EQXX technology programme. The product substance in this class will be elevated, while at the same time, the portfolio complexity of its family will be reduced from seven to four variants.

By launching all-new electric GLC and C-Class models, Mercedes-Benz will close a gap in its electric core segment. An all-new fully electric E-Class will round out the picture.

The pace of BEV adoption will continue to be determined by market conditions, infrastructure and customer needs. Boosted by new BEV model introductions, the Mercedes-Benz Group AG is targeting an xEV share of more than 30% in 2027.

“We will excite our customers with a full rollout of uncompromising cars. They will be an intelligent part of their life. All of them come with a fully integrated tech stack and leverage the latest developments in AI. They will be packed with advanced technologies like the latest ADAS systems and innovative tech features like a new steer-by-wire system. It all starts very soon with our new CLA, our first software-defined vehicle powered by our very own in-house operating system MB.OS. It will be followed by our new electric GLC, which is a turning point in our mid-size segment. This is the all-electric SUV our customers have been waiting for.”
Markus Schaefer, Member of the Board of Management of Mercedes-Benz Group AG. Chief Technology Officer, Development & Procurement
Intelligent scalable modules

With the launch of the CLA, all new Mercedes vehicles will run on the proprietary AI-enhanced Mercedes-Benz Operating System (MB.OS), a chip-to-cloud software operating system which covers infotainment, automated driving, comfort as well as driving & charging. By having full control of all sensors and actuators, Mercedes-Benz will be able to deliver a superior product experience. MB.OS is scalable to fit every segment and can be tailored to each region. For example, with navigation, Mercedes-Benz will use Google in western markets, AMAP for China and TMAP in Korea.

The BEV drivetrain portfolio will make use of highly modular electric drive units and batteries which are scalable for all segments, including cost-effective Lithium-Iron-Phosphate (LFP) and advanced Nickel-Manganese-Cobalt (NMC) batteries, as well as high-performance round cells.

For the batteries used in the CLA, the cost per kilowatt hour has been cut by about 30% compared to its predecessor generation. Further improvements in energy density and cost efficiency are being worked on, in addition to advances in cell chemistry. Lithium-Manganese-Oxide (LMO)/NMC blends will lower costs while increasing energy density to NMC levels.

The newly developed, flexible Electric Drive Unit 2.0 (EDU 2.0) will offer two and four-wheel options across all segments.

To also ensure a comprehensive portfolio of electrified high-tech combustion-engine vehicles, Mercedes-Benz already has a full range of future-proof EU-7 ready engines and transmissions ranging from four to eight cylinders. In selected markets, 12-cylinder engines will continue to be offered.
Lead in tech

Mercedes-Benz continues to push boundaries with cutting-edge technology, including a new steer-by-wire system and a fully integrated tech stack, which includes a water-cooled supercomputer. With the all-new CLA, Mercedes-Benz will introduce not just MB.OS, but also the MBUX Virtual Assistant, which incorporates multi-agent AI functionalities. Using the latest Large Language Models (LLM) and incorporating conversational as well as behavioural AI, it makes the user experience more proactive and human like. It can even answer follow-up questions in a natural way for up to an hour, thanks to memory.

MB.OS also supports next level automated driving, including Level 2++ point-to-point navigation which handles complex urban traffic. This feature will be available in China and the US with the all-new CLA, and Europe will follow as soon as legislation permits. Speeds for SAE Level 3 conditionally automated driving are increasing, and the goal is to get a 130 km/h system on the road by the end of the decade. Mercedes-Benz became the first international car maker to gain approval for testing SAE Level 4 highly-automated driving in Beijing on designated urban roads and highways.
Winning in China

The S-Class remains the undisputed market leader in its segment, and Mercedes-Benz continues to lead the segments for vehicles priced 1 million RMB and above. China is already home to Mercedes-Benz's biggest and strongest research and development network outside of Germany. Local facilities in Beijing and Shanghai allow Mercedes-Benz to take full advantage of the local ecosystem and supplier landscape. This enables Mercedes-Benz to combine upholding its high internal standards while innovating at “China speed.” Mercedes-Benz is already setting standards in navigation with lane-level navigation and 3D maps.

Utilising the China R&D network will allow Mercedes-Benz to elevate the intelligence of its products while at the same time greatly lowering complexity and cost. Products made for the Chinese market will be locally developed and loaded with China-specific apps and content, including dedicated infotainment and automated driving features. As part of the announced product launch campaign there will be seven models dedicated to China across all segments and drivetrains.

Despite a challenging year 2024, the Mercedes-Benz China Joint Venture operations achieved a strong return on sales. Mercedes-Benz plans to optimise the BBAC joint venture together with its partner. A 10% reduction in material costs is targeted through deeper localisation of parts in the China supply chain. Variable production costs and fixed costs are set to be reduced as well. Potential adjustments to the dealer network and production footprint are also being evaluated.
R&D costs

Mercedes-Benz is prioritising global R&D resources with a laser focus on the customer. The company will continue investing in the Mercedes-Benz Tech Stack to defend and expand its position in software and hardware. The vertical integration of MB.OS will allow for a continuous, iterative approach to product development with an increased emphasis on software. The use of digital tools also allows Mercedes-Benz to achieve greater levels of efficiency in its use of hardware and test fleets.

Investments are expected to reach their peak in 2025 due to the massive product launch plan and will ease from 2026 onwards. The majority of investments for the CLA family of vehicles, the electric GLC and C-Class as well as AMG.EA models will be completed by 2027, with products on the road. Investments into combustion engine technology will remain limited, thanks to a reduction in powertrain complexity and the use of intelligent modularisation between BEV and electrified high-tech ICE products. The highly efficient four-cylinder engine for the all-new CLA was developed and designed by Mercedes-Benz and is being industrialised with a partner in China. 
Next Level Performance:

Production: Mercedes-Benz Group is adapting its cost base with a raft of measures. The company plans to cut production costs by 10% until 2027 after using the past years to adjust its nominal production capacity.  This, among other factors, resulted in an exit from plants in Hambach (France), Iracemapolis (Brazil) as well as CKD plants in Russia and Indonesia. A powertrain plant in Poland is being transformed into a future production site for Vans and the sale of a Van plant in Argentina is another step towards adapting the company’s global production footprint. Global production capacity for passenger cars is planned to be reduced from 2.5 million in 2024 to between 2 - 2.2 million units by 2027, while retaining the flexibility to readjust, as the product launch campaign gains traction. There are no plans to shut down plants in Germany. Production capacity at each German plant is being balanced at an average 300,000 units. A core segment model will be added to the production lineup in Kecskemet (Hungary), where capacity is being added to take advantage of factor costs which are roughly 70% lower than in Germany.

Mercedes-Benz will make greater use of digitalization and AI, adopting a ‘digital first’ approach. Thanks to digital twins, Mercedes-Benz can plan potential moves of models between plants, including ramp up times, and retooling of the plant without having to significantly interrupt real-world production.

Local for local: By 2027 the share of local-for-local production is planned to be increased from 60% to 70%. An additional Core segment model could be allocated to the United States and a long-wheelbase version of the GLE will be localised in China by mid-2026.

Material Costs: Suppliers are engaged in a dialogue with Mercedes-Benz procurement and engineering teams to reduce material costs by challenging specifications and the design of components to identify where cost can be reduced through standardization and technical refinement. One result is earlier and deeper integration of key suppliers in the development process. Material costs will be tackled in close collaboration with suppliers. The BEAT26 program aims to jointly achieve long-term and sustainable changes to cost structures in procurement for both Mercedes-Benz and its partners.

Fixed Costs: Mercedes-Benz achieved a 19% reduction in fixed costs between 2019 and 2024, net of inflation. An additional reduction of more than 10% is being targeted over the next three years. To achieve this, the company is, among other things, in constructive discussions with its works council. Moreover, opportunities are being evaluated to determine how Mercedes-Benz sales and financial services organizations can work more closely together, to cater to customers across the different touchpoints more efficiently. In addition to selling its own retail business in Germany to experienced dealer groups, the company plans to further reduce management positions and increase the use of digitalization and generative AI to streamline processes.

“To ensure that the company can weather an even more dynamic geopolitical environment as well as challenging markets, efficiency measures are being intensified across the board. Paired with strong product substance and our product launch plan, Mercedes-Benz is well positioned to recalibrate its operating point and to return to double-digit margins in the near future.” 
Harald Wilhelm, Chief Financial Officer of Mercedes-Benz Group AG