Norbert Haug said that Mercedes spending on F1 has more than halved in five years © Sutton Images Enlarge Related Links Drivers:

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Mercedes competition boss Norbert Haug has defended the company's increased involvement in Formula One, claiming that costs are actually being reduced and that the retainers of both drivers are being met by sponsors.

While fellow carmakers Honda, BMW and Toyota have all pulled out of the sport, and Renault has scaled back its involvement by selling a majority stake in its team to Genii Capital, Mercedes has faced internal criticism for buying the Brawn team, and bringing Michael Schumacher out of retirement.

After the buyout, a member of Daimler's supervisory board and Corporate Works Council Erich Klemm said Mercedes had missed a "chance to completely leave the costly and controversial circus".

Further accusations were made after Haug announced Mercedes had signed Schumacher for €7 million ($10 million). Another supervisory board member Uwe Werner said the decision was "hard to justify" amid the automobile world's current crisis.

Now Haug has defended the position: "Both statements do not take into account that with its own team, Daimler will next year be spending about 60% less compared to the peak in 2005. With our new approach, within five years our costs have more than halved."

He also revealed that, unlike at McLaren where Mercedes contributed half of the cost of driver salaries, the company is not paying the retainers of Schumacher and team-mate Nico Rosberg.

"In our F1 team, the drivers' salary comes only from our sponsor partners and the commercial rights holder FOM [Formula One Management], not from Mercedes-Benz," he insisted.