Bankruptcy Hits Mercedes F1 Turbo Supply Chain

Mercedes Turbo Supplier Declares Bankruptcy

15/11/2024

Mercedes F1 secures future operations after its turbo supplier declares bankruptcy, ensuring readiness for 2025 while planning long-term engine changes.

Mercedes F1 faced a significant potential setback: the bankruptcy of Reaction Engines, the company supplying turbos for the team’s power units.

However, the team has “made arrangements to secure the necessary equipment for the 2025 season” by pre-ordering the required stock to cover the season, with an FIA-approved margin, of course.

Looking ahead, the Brackley team confirmed it had “already decided to stop using this supplier starting from the 2026 season” for the new hybrid engines, which must combine 50% thermal power with 50% electric power.

Mercedes employs a turbo design distinct from its rivals, using an air-water cooler. Most manufacturers opt for an air-air version due to its slimmer profile and lighter weight.

This turbo is supplied by Reaction Engines, a company with a history of financial difficulties. These issues had previously been resolved through external investors, but in October, they failed to secure new funding.

Of the 208 employees, 170 were already notified they would be laid off in November. The remaining staff will complete production of the turbos for Mercedes’ 2025 season and other orders before the company permanently shuts down.

Bankruptcy Hits Mercedes F1 Turbo Supply Chain Bankruptcy Hits Mercedes F1 Turbo Supply Chain

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