Mercedes' British driver Lewis Hamilton races during the German Formula One Eifel Grand Prix at the Nuerburgring circuit in Nuerburg, western Germany, on Oct 11, 2020. (PHOTO / AFP)

FRANKFURT - Mercedes owner Daimler is committed to Formula One but is working to slash costs and cut the environmental impact of motor racing, Chief Executive Ola Kaellenius on Wednesday.

“We have as little reason to step out of Formula One as Bayern Munich has to step out of football,” he said during a virtual roundtable discussion with journalists on Wednesday.

The carmaker is developing a plan to make the sport emissions neutral, including through the use of synthetic fuels, and wants to improve the costs of competing in motor racing

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The carmaker is developing a plan to make the sport emissions neutral, including through the use of synthetic fuels, and wants to improve the costs of competing in motor racing.

“The net financial impact will be halved in the next three years. We have an even more aggressive cost reduction target in Formula One than for the rest of the company,” Kaellenius said.

Ola Kaellenius, chairman of the board of management of Daimler AG and Mercedes-Benz AG, reveals to investors the company's new strategy on Oct 6, 2020. (PHOTO / CHINA DAILY)

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Separately Kaellenius reiterated that Daimler is “within striking distance” of meeting its carbon dioxide emissions reduction targets in Europe.

Mercedes-Benz has ramped up sales of electric and hybrid cars in the third quarter and will continue to do so for the rest of the year, he said.