Mercedes Has To Rethink Its F1 Involvement Due To Ecclestone Bribery Scandal
The corruption charges against F1 boss Bernie Ecclestone seem to entail "serious consequences" for German automaker Mercedes, according to Herz, Iwersen & Höpner of HANDELSBLATT. Mercedes-Benz, a division of Daimler AG, is looking into its business relationship with Ecclestone. Various managers reported that Daimler's headquarter in Stuttgart, Germany, is "in a state of commotion." The reason for it are the company's strict guidelines: "Daimler does not tolerate immoral or corrupt practices of its employees or of its business partners." Linklaters law firm partner Laurenz Schmitt, and various other experts said that "Ecclestone's bribery payments of about $44M would fall under this company guideline." Legal experts agree that "if Ecclestone is charged with bribery, Daimler would have to withdraw from F1 racing." Daimler spends €400M ($553M) annually on its F1 involvement (HANDELSBLATT, 6/26).