Mercedes is “on the verge” of quitting formula one.

That is the alarming claim of the London newspaper The Times, in an article written by its authoritative F1 correspondent Kevin Eason.

Eason wrote that while rival top teams Ferrari, McLaren and Red Bull will get to appoint directors once F1 is floated on the Singapore exchange, Mercedes has not been extended the same offer.

“Why should Mercedes have the same deal as the others?” F1 chief executive Bernie Ecclestone is quoted as saying. “What have they done in formula one?

“They won a race and that is it.”

That attitude, Eason argues, has left Mercedes “on the verge of quitting formula one”, having apparently conducted a study into how its Brackley based works team could be withdrawn.

Eason also quoted Ecclestone as having “scoffed” at the suggestion Mercedes quitting could wipe 20 per cent off the value of F1′s stock market floatation.

A spat between two Britons could drive the German giant Mercedes out of formula one, according to a new media report.

F1 chief executive Bernie Ecclestone recently confirmed he is at loggerheads with Mercedes over the next Concorde Agreement.

But at the same time, he insisted that the Stuttgart marque is “very important to formula one. I have always supported them and I will always,” he is quoted by Auto Motor und Sport.

Indeed, Mercedes has its own and newly-winning works team, powers the marquee McLaren outfit, and also supplies engines to Force India.

Ecclestone’s dispute is with fellow Englishman Ross Brawn, who is the Brackley based Mercedes GP team’s principal.

“I have spoken to the team manager (Brawn) about it (the dispute) and he seems to believe that the team has won a few world titles and about 80 races since the Tyrrell days,” said the 81-year-old.

Sport Bild reports that Ecclestone is refusing to give in to Brawn’s demands for extra Concorde Agreement entitlements for past title successes and history.

The magazine said the relationship has become so intense that Ecclestone has even refused to give a joint interview with Brawn.

“He (Brawn) was never very nice to me,” the F1 ‘supremo’ is quoted as saying.

The German report said there is a risk Mercedes will, as a result of the ‘ice age’ between the British duo, pull the plug on its entire F1 involvement.

Norbert Haug said he is proud Mercedes has reached the top of formula one in a short space of time and with a small budget.

The German carmaker’s works team is often lumped together with F1′s other grandees including Ferrari and McLaren, but Haug insists the Brackley based outfit is in fact “a small team, with a small budget”.

Mercedes’ competition boss, who on Sunday collected the winning constructors’ trophy on the Shanghai podium, also said some of the team’s rivals – undoubtedly Red Bull – “took five years to win”.

“We have done it in two and a quarter,” the German told the RTL broadcaster. “That’s not bad at all.

“And there are other teams that still have not made it.”

So is Mercedes now a contender for the world championship, despite Haug’s earlier protestations that the team needs a few more campaigns under its belt for that?

“It is too early to make a prediction,” he told Auto Motor und Sport. “I hope so, but so far we have seen three different winners in three races.”

The newest of those winners is Nico Rosberg, who along with Damon Hill and Jacques Villeneuve are the only sons of F1 drivers to have also gone on to win grands prix.

It is a good omen for Rosberg that both Hill and Villeneuve also won titles.

Rosberg’s former Williams teammate, Alex Wurz, has high praise.

“As a teammate (in 2007) he made my life difficult because he was such a fantastic qualifying driver. In the race it was then always okay.

“But for this (race win) he deserves praise,” Wurz told the Austrian ORF broadcaster, “because he did everything after his pole position also sensationally.”

But in Bahrain, there could be another winner, triple world champion Niki Lauda remarked.

“I have never before seen F1 as interesting as this,” said the Austrian legend. “Every race we see another winner.”

Mercedes could quit formula one or challenge Bernie Ecclestone in court, after it emerged top rivals Ferrari, McLaren and Red Bull have agreed new commercial deals.

With the FOTA alliance crumbling, F1 chief executive Ecclestone announced on Saturday that he has agreed terms with the “majority” of teams.

In addition to the three top teams, it is believed Lotus, Toro Rosso, Sauber and Force India have also signed up.

That leaves Mercedes and Williams apparently yet to agree, while it is believed the three bottom teams Caterham, Marussia and HRT have not even seen a copy of the new Concorde Agreement.

Mercedes would not comment publicly.

“We would like to ask for your understanding that our team currently has nothing to say on this matter,” said a spokesman.

Behind the scenes, however, high-level sources close to the Brackley based team admitted they are unhappy that the terms of the deal heavily favour the top three teams.

One bonus, for example, is for teams who have not changed their name.

Media outlets including PA Sport and London’s Telegraph were told by the sources that the Stuttgart marque could challenge Ecclestone’s methods against European Union competition law.

Or the carmaker and engine supplier could simply quit F1.

“It is understood the carmaker and parent company Daimler are prepared to play hardball”, wrote Tom Cary in the Telegraph, referring specifically to European laws involving the abuse of a dominant position.

Other authoritative publications, also apparently briefed behind the scenes by Mercedes, referred specifically to the same laws.

On the record, Mercedes’ competition vice-president Norbert Haug said in Malaysia: “I’m not sure who has signed. We’ve nothing currently to say.”

Michael Schumacher has played down expectations he or Nico Rosberg could put their 2012 Mercedes on pole in Malaysia.
“I think we will be somewhere near the top,” Rosberg is quoted by Germany’s Auto Motor und Sport. “The race is more of a worry for us.”

Last weekend in Australia, the W03 was strong in qualifying but faded in the race as it ate through the Pirelli tyres.

Mercedes insists it is working on the race pace problem, but the Brackley based team could shine even brighter in Sepang qualifying, with the innovative W-duct working particularly well on the long straights.

So could Schumacher secure his 69th pole on Saturday?

“That would be too optimistic,” said the 43-year-old German. “I think the battle for fifth place is the maximum.”

A really good qualifying for Mercedes, however, would be a problem for a team like Red Bull.

“With the (W-duct) system, the Mercedes will be very difficult to overtake,” Dr Helmut Marko told Bild newspaper.

It is believed the reigning champions, despite insisting the system is illegal, are hard at work on their own F-duct.

But Marko admitted: “It is very difficult to recreate.”

Mercedes team boss Ross Brawn believes all the fuss about the W-duct is a ploy by teams like Red Bull.

“They are bombarding the FIA with questions about our technology in the hope of finding out the secret,” he said.

 Former boss Colin Kolles and his Greding-based company is no longer involved, but there remains a strong German input with the struggling team HRT.
A report in the Augsburger Allgemeine newspaper reveals that the new Cosworth-powered F112 car, which failed to qualify in Melbourne last weekend, was designed and built in Augsburg, a city in the south-west of Bavaria.

It is there that, since November 2011, the Holzer-Gruppe company has been frantically building up the Cosworth-powered cars for Pedro de la Rosa and Narain Karthikeyan.

“Under our management almost everything has been made here in Bobingen,” said Gunther Holzer.

“For the wind tunnel we used the Mercedes facility in Brackley (UK),” he added.

Eight of F1′s 12 teams are based in England, with the others either in Italy (Ferrari and Toro Rosso) or Switzerland (Sauber).

HRT uses Williams’ gearbox.

“We wanted to go our separate way, not like almost everyone else who are all within a few miles of Oxford,” said HRT chief executive Saul Ruiz de Marcos.

The team’s longer plan is to be solely based in Madrid, but for now Holzer will lead the development of the F112.

“For the start of the European season in Spain we are planning the first improvements to the car,” said Marcos.

Holzer explained: “The car is designed first for safety and so is heavy compared to the competition. For the future we are focused on making it lighter.”

Before the lighter car debuts in Barcelona, HRT faces three more challenges – Malaysia, China and Bahrain – at which the sport’s 107 per cent rule will be a major hurdle.

“The goal is to qualify, there is no other,” admitted de la Rosa. “Race reliability is something else we need to work on, but first we have to qualify.”

Ross Brawn has moved to play down the hype surrounding Mercedes’ new so-called ‘F-duct’ solutions.
The active F-ducts of 2010 are banned, but clever ‘passive’ and therefore legal solutions have emerged not only on Mercedes’ car this year.

It is the talk of the paddock, and in Friday’s second practice session, Michael Schumacher topped the times with the W03 car, featuring front and rear F-ducts.

When asked about the new ‘F-ducts’, team boss Brawn said in Melbourne: “I’m surprised they (people) are calling it that, because I don’t quite know what that means.

“We have an interesting system on the car and it’s not complicated at all, so I’m sure other teams are looking at it and they need to decide if it’s worthwhile or not.”

It is such a big talking point this weekend because, in 2009, the Brackley based team – then Brawn GP – raced to the title as the first to perfect a double-diffuser.

And last year, it was the now-banned blown exhausts that set the pace.

But Brawn insists that the new F-ducts are “not in the same magnitude” as those title-winning innovations.

“It’s obviously helpful,” he admitted, “that’s why we’re doing it but it’s not a massive performance gain.”

Nonetheless, the arms race has begun.

“That’s going to cost a lot of money,” Sauber’s technical director Matt Morris told Auto Motor und Sport.

Ross Brawn in Melbourne has admitted he would like to keep working with Michael Schumacher beyond 2012.
The seven time world champion’s three-year Mercedes contract expires this season, and the 43-year-old said on Thursday he has “no timetable” for talks with the Brackley based team.

There have been reports Mercedes sees McLaren’s Lewis Hamilton – also with an expiring contract – as a potential successor to Schumacher.

Team boss Brawn, however, admitted he hopes Mercedes and Schumacher live up to their expectations in 2012.

“We look forward to continuing to work with Michael,” he told SID news agency, “because that would mean we are successful in what we are doing.

“If Michael stays in the team, that would mean that we are coming closer to our goals,” explained Brawn.

“At some point in the season we will decide to continue, or do something else.”

Schumacher, however, denied that 2012 is “any more important than any other” season in terms of his future.

Ross Brawn insists great wealth has not affected his drive to succeed.
As team boss, the Briton bought Brackley based Honda for a nominal pound after the 2008 season, before ‘Brawn GP’ and Jenson Button raced to the drivers’ and constructors’ titles.

At the end of that campaign, Brawn sold the team to Mercedes, and the Financial Times claims the Briton – still team principal – collected dozens of millions of dollars.

“I’m obviously a lot wealthier now than before and you wonder if you still have the same motivation to get up in the morning,” Brawn said.

“But it did not alter my perspective or my passion and ambition to succeed in racing.”

His job now is to win for Mercedes, and 2012 is year three, and the end of Michael Schumacher’s initial contract.

“If it does not come off I will have to recognise there is something missing, something I am not able to do that perhaps someone else should have a go at,” revealed Brawn.

 With an eye on the usual suspects McLaren and Ferrari, Red Bull mogul Dietrich Mateschitz thinks yet another team could be a real challenger in 2012.
Referring to Mercedes, he told the Austrian newspaper Kurier that the Ross Brawn-led team seems to have come up with “very good improvements” and “a major development”.

He is believed to be referring to clever new systems on the W03, with the latest discovery said to boost top speed significantly by combining ‘DRS’ with a new and legal F-duct solution.

Red Bull’s Dr Helmut Marko agrees that the Mercedes idea is “shrewd”, adding that there is not time to fit a similar system to the RB8 before Melbourne.

Triple world champion Niki Lauda told Germany’s RTL television: “I think the McLaren and the Red Bull cars are on par.

“Mercedes is the big question mark — I think they are also really fast.”

Finally realising Mercedes’ apparent speed, a newspaper recently crowned the Brackley based team the ‘Bluff champion’ of the 2012 winter.

Michael Schumacher, however, insists it has not been a deliberate strategy.

“Formula one is just so complex that we simply don’t know much about how the other teams are going. Clearly, the W03 is a step forward,” he told Bild-Zeitung.

“The question is how big our step has been compared to the others. We really need to wait until the first race.”

Ross Brawn has admitted Mercedes’ new 2012 car is not ready to take on the best teams in formula one.
“We are slower than Red Bull; we need to find more speed,” the Briton plainly told Germany’s Auto Motor und Sport.

Other team figures for the German marque’s Brackley outfit this week said the target for 2012 is third place, with the title not a realistic goal until 2014.

“On the positive side, our car is reliable and it’s a step forward, but we are still not where we want to be,” added Brawn.

He confirmed that the goal for 2012 is to finish behind the top title challengers.

“Third place, one better than last year,” said Brawn. “Anything better than that, of course, is welcome.”

He said Mercedes has been aggressive with the design of the W03, “But we have not reinvented the racing car”.

“Red Bull has the advantage of building on a very good foundation.”

 The recently revealed ‘W-duct’ aside, another technical secret has been discovered aboard Mercedes’ newly launched W03.
Rumours insist the German squad was the last to reveal and test its 2012 car because it boasts a few highly innovative ideas that could drive Michael Schumacher and Nico Rosberg to the middle of the podium.

Germany’s Auto Motor und Sport reports that mechanics working for the Brackley based team are making more efforts than usual to hide the front and rear of the car, and erecting huge screens in front of the pits between test runs in Barcelona.

But a big secret is now out of the bag, and it’s located beneath the rear rain light and being described by insiders as “like a double diffuser”.

Italy’s La Gazzetta dello Sport said the feature is believed to produce an effect similar to the one pioneered by Mercedes’ predecessor Brawn GP in 2009, which resulted in the championship for Jenson Button.

And according to Auto Motor und Sport, the concept differs to the banned double diffuser because the air is channelled through holes at the rear of the engine cover.

The concept, despite complying with the FIA’s blown diffuser clampdown, also reportedly involves the clever redirection of exhaust gases.

And yet another innovation on the Mercedes could be a passive ‘F-duct’-style addition to the car’s new rear wing, working alongside the ‘DRS’ system.

When asked about the ‘ducts’, Rosberg and Schumacher played it coy: “What’s that?” Rosberg answered, while Schumacher joked that it sounds like something that should go “quack!”

“They are a good team,” Red Bull team boss Christian Horner told Sky when asked about Mercedes.

“They have some good people so it would be foolish to underestimate them.”

Meanwhile, TZ newspaper in Germany reports that the FIA could be set to clamp down even harder in the area of exhaust blowing.

There are rumours Renault and Mercedes-powered teams are still using clever engine mapping techniques for aerodynamic effect.

Nico Rosberg has named Mark Webber as his toughest teammate in formula one so far.

The German made his grand prix debut alongside Australian Webber at Williams in 2006, moving four seasons later to Mercedes.

While at Williams, Rosberg also raced as teammate to Alex Wurz and Kazuki Nakajima.

Rosberg’s Mercedes move in 2010 coincided with seven time world champion Michael Schumacher’s return to formula one at the same Brackley based team, where they have been teammates ever since.

When asked by Germany’s Sport Bild who his toughest teammate has been, he answered: “Mark Webber in 2006, then Michael.”

And he hopes he will be in front of his famous current teammate yet again in 2012, particularly with Mercedes hoping its new W03 is a race winner.

“To be the first German to win in the new Silver Arrow would be an absolute dream for me,” said Rosberg, whose father Keke won the title in 1982.

 Mercedes is eyeing a new two-year contract extension for Michael Schumacher, according to the major German newspaper Bild.
The seven time world champion, having returned to F1 with the famous German marque in 2010, has not decided whether or not to continue his comeback beyond this season.

“Bild knows that Mercedes wants to keep him,” said the newspaper, after the Brackley based team’s new W03 car was launched in Barcelona.

The report said Mercedes has decided to offer Schumacher, 43, a new two-year deal through 2014.

“Before we talk to any other candidate, our first contact will definitely be Michael,” confirmed team boss Ross Brawn.

Schumacher commented: “I’ll decide when the time is right.”

Mercedes on Tuesday gave the strongest hint yet that Michael Schumacher is set to stay with the Brackley based team beyond 2012.
The seven time world champion returned from retirement with the German team in 2010, and has been widely criticised for failing to live up to the hype of his meteoric initial career.

But 2011 was undoubtedly a better season for the 43-year-old, moving team boss Ross Brawn to hint that Schumacher could receive a new deal for 2013.

“At the moment we aren’t talking to any other drivers,” he told Sport Bild magazine.

“I am also assuming that he is not talking to other teams.

“So if Michael is still enjoying what he’s doing while bringing in the results that we expect, then why not? He definitely has not said that he is toying with the idea of stopping,” added Brawn.

Mercedes’ competition director Norbert Haug added that the great German is “still one of the best race drivers in the field”.

Haug said Schumacher is often as fast or faster than his younger teammate Nico Rosberg, which is impressive “because Nico is undoubtedly among the five best drivers in F1″, he is quoted by FAZ newspaper.

Added Brawn: “It took a little longer than planned for Michael to be where he wanted to be — and even longer than I would have thought.

“The first year was difficult,” admitted Schumacher’s former Ferrari colleague. “I think he did an excellent job in the races in the second year, while Nico was slightly better than him in qualifying.

“I think that really frustrated him (Schumacher),” added Brawn.