F1 needs to resolve its dispute with Mercedes before the sport’s multi-billion dollar floatation plans can go ahead.

That is the warning of the German team’s chief executive Nick Fry, as Mercedes refuses to sign up to the new Concorde Agreement because rival top teams Ferrari, McLaren and Red Bull have been offered better deals.

Fry is quoted by The Times newspaper as admitting that the progress of talks with Bernie Ecclestone are “not as strong as I would like”.

But he warned: “If CVC wish to float F1, I think they need this resolved fairly quickly — possibly more than we need it resolved.”

At the same time, he played down speculation Mercedes is on the verge of quitting F1.

“The mindset is absolutely in capital letters: Mercedes-Benz wishes to be in F1,” Fry insisted. “I would add that F1 also needs Mercedes-Benz.

“I am completely convinced in my mind that if CVC wish to sell some or all of F1, the value they can derive from that would be severely diminished if Mercedes was not a participant.”

But a senior executive of Mercedes denied the spat is about money.

“It is about fairness,” the unnamed official told The Times’ Kevin Eason.

“We are facing a situation in which three teams will between them decide some of the biggest issues in formula one. That cannot be right.”

Michael Schumacher finally returned to the top three’s inner sanctum on Saturday.
“Who would have thought it last year?” the seven time world champion smiled in Malaysia after beating the formerly dominant Red Bulls with his Mercedes.

But the fact he was only beaten by the dominant McLarens in Sepang qualifying does not mean Mercedes is now ready to take on F1′s very best, boss Norbert Haug insisted.

Last weekend in Australia, the German team also performed well on Saturday before the tyres degraded heavily in the race — and in Malaysia, very high temperatures are an added factor.

“We are not equipped yet to take over from the likes of McLaren and Red Bull,” Haug is quoted by Sky Deutschland.

“To be the third force is definitely on the timetable.

“In Australia and also now in Malaysia we were the second force in the qualifying lineup, but the race is what counts,” added the German.

 Red Bull has stepped up the technical row with Mercedes by accusing the German team of breaching a gentlemen’s agreement.
Red Bull and Lotus last weekend threatened to protest the results in Australia, due to Mercedes’ innovative new ‘F-duct’-like solution.

“They are not complying with the agreement of the technical working group,” said Christian Horner.

Adrian Newey also told Auto Bild Motorsport: “The FIA has allowed the system, but Mercedes has gone against the gentlemen’s agreement of the teams.”

He is apparently referring to a meeting last year in which teams informally agreed not to pursue certain technical directions.

 With one race down out of twenty, F1 teams are now hopping from Australia to Malaysia where the new pecking-order will be immediately tested on a more conventional circuit.
Some paddock cynics suspect McLaren – having dominated qualifying in Melbourne before Jenson Button cruised to victory – played a deft hand of bluff in the winter season in order to persuade Red Bull its former dominance remained intact.

New 2012 championship leader Button, however, insists the British team was surprised in Australia.

“It wasn’t bullshit at all,” he said late on Sunday.

“I actually did pinch myself in the race just to make sure I wasn’t dreaming.

“After qualifying I looked across at Lewis (Hamilton) and said ‘Did you think we would be that quick?’, and he was like ‘No’.”

Another possibility is that, while quick, McLaren may not be dominant.

“We knew from winter testing that McLaren were competitive but I think our race pace was every bit the equal of theirs today,” said Red Bull’s team boss Christian Horner, after a betting showing for the reigning champions on Sunday compared to qualifying.

“Malaysia is a very different prospect from here. Here it is short turns, bumpy, not a lot of high-speed corners.

“But Malaysia offers that variant, so I think it will be interesting to see how quick they are in Malaysia,” he added.

Mark Webber was also relieved on Sunday, after a troubled earlier evening.

“It’s never nice to know you might be out of the ball game,” said the Australian, referring to Red Bull’s qualifying performance, “but clearly we are not.”

Yet another possibility is that McLaren will extend their winning streak into Malaysia.

“The Barcelona test showed us that we are better than Red Bull in the fast corners. Their (Red Bull’s) advantage is in traction,” McLaren’s Martin Whitmarsh is quoted by Germany’s Auto Motor und Sport.

Agreed Mercedes’ Ross Brawn: “We could see that the McLaren improved significantly with the introduction of their new aerodynamic specification in Barcelona.”

But the German team’s Norbert Haug warned before leaving Melbourne: “We could see something quite different in Malaysia.”

Livio Oricchio, the correspondent for Brazil’s O Estado de S.Paulo newspaper, agreed: “It is prudent to wait and see what happens now in Malaysia.

“It’s a permanent circuit, much more in line with most of the circuits on the calendar.

“But it seems unlikely that we will see something radically different to what we saw in Australia,” he conceded.

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.

 Mercedes’ highly-anticipated 2012 car made its track debut this week during a secret test day at Silverstone.
“Lots of questions about Silverstone and shakedowns,” admitted the Northamptonshire based team on Twitter on Thursday.

Youtube video footage, captured by a trackside observer, showed the ‘step’ nose W03 turning laps at the British grand prix venue, which is located just a 15-minute drive from the German team’s Brackley headquarters.

Mercedes said the test was for “filming” purposes, with Nico Rosberg and Michael Schumacher’s equally sharing the allowed 100 kilometres of running.

Italy’s Autosprint website said the car appeared “fairly conventional”, despite speculation the late test debut is due to the team keeping an explosive technical innovation close to its chest.

Adrian Newey, Red Bull’s car designer, admitted he and Mercedes’ rivals might have a very close look at the W03 if the rumours about the technical secret are true.

“If it comes out and goes three seconds quicker than anybody else, yes of course,” he is quoted by Reuters.

“Other than that, simply because its later doesn’t mean to say you are going to suddenly show more attention at that than anybody else’s.”

Meanwhile, after the struggling Spanish team’s 2012 car recently failed two mandatory FIA crash tests, HRT will sit out next week’s Barcelona test.

Last week at Jerez, Pedro de la Rosa ran at the wheel of the 2011 car.

 Alongside step noses, clever exhausts and Lotus’ surprise pace, another point of interest in the Jerez paddock this week is Mercedes’ radical front wing.
Germany’s Auto Motor und Sport said the German team, albeit still running its 2011 car, tested a new front wing featuring a passive F-duct style system.

In Nico Rosberg’s hands, the W02 was quickest of all on Thursday, just as it had been when Michael Schumacher was driving earlier.

The German report said air enters Mercedes’ revolutionary nose at the tip, where it is rechanneled onto the front wing.

Auto Motor und Sport said McLaren Whitmarsh estimates the top speed benefit of the system, which first appeared on the Mercedes in prototype form late last season, to be around 5 and 8kph.

“For the front wing, there are no (F-duct) rules,” said the Auto Motor und Sport report. “It is legal.”

Red Bull owner Dietrich Mateschitz was in the Jerez paddock on Thursday, checking out his team’s progress and also the new cars fielded by rivals Ferrari and McLaren.

“Now we are all waiting for Mercedes,” he said.

Michael Schumacher is not as good as Sebastian Vettel or Nico Rosberg, but he’s still up to speed with Mark Webber.
That is the view of former ten time race winner Gerhard Berger, who until 1997 shared the circuits with F1′s only seven time world champion.

Der Spiegel quotes the Austrian as saying Schumacher, while once the fastest driver in the sport, no longer holds that mantle.

The case in point is qualifying, where Rosberg has utterly dominated Schumacher this year at Mercedes.

“In my opinion Rosberg is on the same level as Vettel; in the right car he could win races and titles,” said Berger.

“Schumacher can no longer beat them, but he is still as good as – for example – Mark Webber.”

Berger is therefore highly critical of the apparent place-swapping between Rosberg and Schumacher at Spa recently, with the younger German dropping behind to save fuel while Schumacher drove ahead on the 20th anniversary of his debut.

Norbert Haug denies Mercedes imposed team orders, also insisting that Schumacher “would not accept such gifts”.

But given the safety car period in Belgium, the German team’s claim about Rosberg running out of fuel has been ridiculed.

Former Sauber driver Karl Wendlinger told Servus TV: “Without the safety car you would have to believe that Rosberg would have run out of gas with ten laps to go.”

Added Ferrari engineer Dieter Gundel: “It is possible to make an error in calculating the fuel level before a race, but you then have to wonder why Mercedes made the error only with one car.”

Red Bull will travel to high speed Monza next week with less-than-expected levels of trepidation.

The championship leading team was expecting its Renault engines to suffer on the long straights of Spa-Francorchamps, but Sebastian Vettel and Mark Webber – with blistering tyres – delivered a one-two finish instead.

Italian grand prix venue Monza, meanwhile, is an even higher speed venue, and without many of the kinds of corners seen in Spa’s sector two that suited Adrian Newey’s RB7.

“In the last two years it (Monza) has not been a good track for us, so we’ll see,” Briton Newey is quoted as saying by Autosprint after accepting the constructors’ trophy on the Belgian grand prix podium.

Runaway points leader Vettel is happier with the prospect of racing at Monza after winning last Sunday.

“The car felt so fantastic (at Spa) and the balance was fabulous so it (Monza) should be manageable,” said the German.

Team boss Christian Horner admitted the Belgian result was a surprise.

“In many respects it was, yes, because power is a dominant factor and we thought it would perhaps favour some of our opponents more,” he said.

The RB7 was wearing a noticeably thin rear wing profile at Spa and the bespoke item will return to the car next weekend.

“I think that if we want to get close to certain engines on the straight we have to run a bit less wing,” confirmed Horner.

Mercedes is reportedly set to introduce a Renault-like approach to its 2011 car’s exhaust layout for debut in Barcelona next weekend.
It was already rumoured that the German team is perhaps now closer than any other to imitating Red Bull’s flexible front wing.

“For Barcelona we have some aerodynamic developments that should bring us a step in performance,” team boss Ross Brawn told Auto Motor und Sport.

AS newspaper said the main feature of Mercedes’ Spanish upgrade is side-exiting exhausts, with Red Bull’s Adrian Newey admitting recently that innovation has been the most impressive of the season so far.

Said team driver Nico Rosberg: “Most teams are bringing new things, but I think ours could be better than the others to bring us a little closer to the top.”

Meanwhile, Italy’s Autosprint said McLaren is set to move forward in Barcelona in the crucial new area of engine mapping settings for the blown exhaust.

“For Turkey we’d planned to introduce a couple of useful upgrades, but for several reasons we weren’t able to get them onto the car,” revealed Jenson Button.

‘Simulator sickness’ does not explain Michael Schumacher’s disappointing return to F1 alongside Nico Rosberg in 2010.

That was the gist of a statement issued by Mercedes following reports this week that the seven time world champion did not work in the team’s Brackley simulator last year due to motion sickness.

A source had told Dutch website f1today.nl that while Rosberg’s setup work was “largely done” by the time he got to a grand prix, “Michael begins with a basic setting” because of his inability to work effectively in the simulator.

But Mercedes clarified in a statement that the reports were wrong to say Schumacher, 42, has only been suffering from motion sickness since returning to F1 after an initial career spanning 91 wins.

“Throughout his career, Michael from time to time has been susceptible to simulator sickness which has affected the length of time that he can spend on a simulator,” said the German team.

“Michael has not been disadvantaged as together with his engineers he has made his simulation work effective,” added Mercedes.

However, the statement did say Schumacher’s problem with simulators was “exacerbated” in 2010 because Mercedes’ technology is not yet up to scratch with some of its rivals.

Rubens Barrichello has revealed he hopes to stay with the Williams team in 2011.

His comments, in a Portuguese interview with the news agency Reuters, follow reports that the veteran Brazilian could be replaced next year by the Venezuelan pay-driver Pastor Maldonado.

Previously, it was believed that Barrichello’s rookie German teammate Nico Hulkenberg was the most likely to make way should the Oxfordshire based team decide to sign 25-year-old Maldonado and his sponsor.

“I’ve done a good job this year and I’m focused on the car for next year, so I’m hoping to stay,” the Portuguese language report quoted Barrichello, 39, as saying.

Currently in his native Sao Paulo ahead of the Brazilian grand prix next weekend, Barrichello also revealed that he is not in talks with any other F1 teams.

Last month, the Brazilian said he was “100 per cent” sure he will be driving for Williams in 2011 even though the deal had not been confirmed on paper.

But when asked on Thursday if a deal is in place, Barrichello said: “That’s something you will have to ask Williams.”

And when discussing taking part in his 18th home grand prix next weekend, he added: “Our car is getting better and all I can hope for is a positive weekend.

“The start of the season was not so good, we thought we had a good car but it was hard for us to be in the top ten.

“But the rapport with the team was very good and we managed to improve,” said Barrichello.

Globo also quotes him as saying: “I’ve been working on the car for next year. There are things arising from the regulations that we are only going to find out later, but the design is bold and 2011 is going to be better than this one.”

Narain Karthikeyan has emerged as a contender to race with the Force India team in 2011.

Before Karun Chandhok made his debut in 2010, 33-year-old Karthikeyan was India’s first grand prix driver, contesting the full 2005 season with Jordan.

The Silverstone based team has since been re-branded as Midland, Spyker and is now Force India, headed by the Indian billionaire Vijay Mallya.

Force India’s current driver lineup is reportedly not secure for 2011, with Adrian Sutil eyeing a move to a bigger team, Vitantonio Liuzzi struggling to keep up with his German teammate, and reserve driver Paul di Resta thought likely to move into a race cockpit.

And the latest rumours from Italy, including a report in Autosprint magazine, is that Karthikeyan is a possibility for 2011.

It is suggested his sponsors have up to $8 million in total to spend on the seat, including Mumbai-based Tata Motors who are thought keen to associate with next year’s inaugural Indian grand prix.

On his visit this week to the Delhi site of next year’s race, Bernie Ecclestone said he hoped there would be an Indian driver on the grid.

“If an Indian driver is in Vijay’s team or a good team it will be superb,” he said.

Mercedes is waiting on a French supplier before pushing ahead with its latest specification of the blown diffuser.
The German team reversed the specification in Hungary because recent track outings showed that the hot engine exhaust was melting the car — particularly the all-important floor and diffuser.

“The car looked different when it left the pits to when it came back,” Michael Schumacher is quoted by Bild newspaper.

Mercedes was waiting on an order of incombustible space-craft material called Pyrosic, made exclusively by Pyromeral Systems in France.

But there were problems with delivery, with Ross Brawn confirming: “We are now trying a different material.”

In Hungary, Nico Rosberg joined Schumacher in writing off their chances of winning the titles in 2010.

And asked what he can learn from Germany’s leading F1 driver Sebastian Vettel, Rosberg answered: “From Sebastian? Nothing — only the speed of his car.”

Mercedes’ problem in 2010 is not the tyres but the team’s simulation techniques, according to Niki Lauda.

It has been said the German team is puzzled by the current Bridgestone tyres and how they interact with the W01, the successor of last year’s championship winning Brawn.

But former triple world champion Lauda thinks the real problem is the new era of reduced track testing and the alternate need to rely on computers and simulators.

“All the teams complain about the tyres but it’s the same problem for all of them,” Lauda is quoted by Bild newspaper.

“The problem with Mercedes is the movement between their simulations and reality. Who is the best in this area wins, and they are McLaren and Red Bull.”

At Silverstone on Wednesday, Michael Schumacher delivered the unsurprising verdict that, with a 93 point deficit in the championship, he is not going to win an eighth title in 2010.

“We try to learn as much as we can and prepare for next year. That’s what I’m fully motivated towards,” said the German.

But some wonder how the winner of 91 grands prix and hundreds of millions of euros in salaries and sponsorships can possibly prolong a middling return to his chosen sport.

“I have known Michael a long time. You would think I’d know if he were about to chuck it in,” team boss Ross Brawn told the Telegraph.

The Briton said Schumacher is taking a different approach to his earlier ruthless determination to win races and titles with Benetton and Ferrari.

“He is more interested in the whole Mercedes project,” said Brawn.

“He takes a greater interest in the wider aspects of what we are trying to do and is not simply concerned with what happens on the track. He is enjoying his return more than people think.”