Mercedes motorsport boss Toto Wolff cited low TV numbers and a subsequent low return-on-investment as the main reason behind the German manufacturer's exit from Formula E.
Mercedes competed for three seasons in the all-electric series, and won consecutive titles in the last two years, with Nyck de Vries and Stoffel Vandoorne.
While the ABB FIA Formula E Championship grew its cumulative audience for Season 8 (2022) beyond the record-breaking levels achieved the previous season - with total viewing hours increasing year-on-year by 58% - the return on investment wasn't enough for Mercedes to justify its involvement, especially compared to Formula 1's massive popularity that continues to grow.
©Mercedes
And Wolff said the same reasoning applied to Mercedes' works presence in the DTM which it left at the end of 2018 season.
"I think that F1 has become so big that everything else has been dwarfed," explained the Austrian in an interview with Polish website SwiatWyscigow.pl.
"We were really happy, successful in DTM for over 30 years.
"But it has come to a point where the works team, if you wanted to compete, you need 40 or 50 million euros and the return on investment was too small for that."
Formula E claims it is building a passionate global fanbase, establishing itself as an appointment-to-view, premium live sport. But Wolff says he just can't reconcile Mercedes' investment with the numbers.
"It’s the same in Formula E, the audiences were just not good enough," he said. "So you have DTM there, and then you have Formula E here, and then you have F1 in the whole room.
"So, we decided that let's concentrate on doing that properly and put the resources into F1, rather than being distracted and dilutive for the other things."
Although the Mercedes brand has pulled out of Formula E, its assets were acquired by McLaren which will field two cars in the 2023 championship for René Rast and Jakes Hughes, while the team itself will remain under the expert management of former Mercedes-EQ team boss Ian James.
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