Decalspotters state that the reason behind Petronas’ decision are the losses the company incurred due to the Covid-19 pandemic, and the drop in oil prices.
The sponsorship-specialized outlet goes on to say that Saudi oil company, Aramco, a state-owned company as well, are set to replace Petronas as Mercedes’ title sponsor.
Aramco are currently currently Formula 1 Global Partner, with the naming rights for 3 grands prix while supporting the F1 Esports division.
Decalspotters, say the INEOS, part-owner and main sponsor of Mercedes-AMG F1, signed “a deal with Aramco and TotalEnergies in 2019, investing in the construction of three plants in the Kingdom of Saudi Arabia”, which is another factor that lead towards this major sponsorship change at Merecedes.
It is worth noting that the Petronas-Mercedes alliance has been highly successful, having won 7 F1 title doubles since joining efforts in 2010, with Mercedes who dominated the turbo-hybrid era since 2014, crediting their oil partners for their support in terms of developing and supplying high quality lubricants and oil formulas.
Petronas is to withdraw their involvement with Mercedes-AMG F1 at the end of the season. The German team is set to be joined by Saudi oil giant Aramco.