Mercedes: 2026 begins with an unknown factor hanging over its future
The year 2026 for the Mercedes team risks starting on less-than-ideal terms. One of its primary shareholders, the British industrial giant Ineos, has accumulated a staggering “monster debt” of 20 billion euros, a figure that could potentially jeopardize the long-term financial support for the Anglo-German squad.
Sir Jim Ratcliffe, the chairman of the company and co-owner of not only Mercedes F1 but also two football clubs—Manchester United and OGC Nice—has attributed Ineos’ difficult situation to a “toxic mix” of high European energy costs, global trade disruptions, and low-cost Chinese imports flooding the market. He has been particularly vocal regarding European net-zero emission policies, arguing that these costs are “killing manufacturing production.”
An annus horribilis for Ineos
Moody’s has downgraded Ineos twice since September, citing a sharp deterioration in operational performance. Revenue has decreased by 20%, while pre-tax profits have plummeted by 55%. The agency warned of “weak debt indicators,” with financial leverage standing at 13.5 times earnings, set against a backdrop of overcapacity, weak demand, and high energy and regulatory costs. One executive described the third-quarter performance as “terrible,” warning that rising refinancing costs could push the company to the brink if markets remain closed.
Cost-cutting measures have followed a partial downsizing in several sectors. Even high-level sporting ambitions, including those involving Mercedes, could face a sudden halt; Ineos has already abandoned high-profile partnerships and written off hundreds of millions of dollars invested in the acquisition of the clothing brand Belstaff. To be clear, we are currently in the realm of speculation, and no official decisions or confirmations have been made regarding an exit from F1.
Banking institutions are monitoring the situation closely. Barclays, which played a fundamental role in rescuing Ineos during the financial crisis, recently warned that European chemical groups must prioritize debt reduction or risk losing significant value in the next recession.
The partnership with Mercedes in F1
Ineos is a principal partner and a 33% shareholder of the Mercedes-AMG Petronas F1 team (alongside parent company Daimler AG and Toto Wolff—note that CrowdStrike recently acquired 5% of the shares previously held by the Team Principal). This collaboration began as a sponsorship in 2020 and evolved into an equity stake at the end of that same year.
In 2025, the brand’s visibility was notably reduced: the logo was less prominent on the car’s livery, moved to secondary positions such as the inside of the front wing to free up space for new sponsors and manage costs. Rumors of tension and a possible split circulated, with suggestions that the team might look to buy out Jim Ratcliffe’s stake. However, both parties have categorically denied these reports: the shareholding remains unchanged, the partnership is described as “stable and lasting,” and Ineos continues to be listed as a principal partner on the team’s official website.
Toto Wolff has reiterated the solidity of the relationship, defining Ratcliffe as one of the “three friends” leading the team, despite broader cuts to the group’s sporting activities. In November 2025, a small portion of Wolff’s stake was sold to a new investor, but the core ownership structure involving Ineos has remained intact for the time being.
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