Mercedes moves 'in-house' with bigger Ilmor stake.

The DaimlerChrysler group has announced that it is to strengthen its stake in engine builder Ilmor to raise the company's future potential, and begin to emulate rivals Ferrari in building an entire F1 machine 'under one roof'.

According to DaimlerChrysler board member Jurgen Hubbert, the move may result in the German giant taking a controlling interest in the company, which has partnered it to grand prix success with the McLaren team through its Mercedes subsidiary.

"Ilmor is capable of designing and building the most competitive engine," Hubbert told journalists, "and, in the future, we see Ilmor being responsible for Mercedes-Benz' high-performance engines in Formula One and other specialist areas.

"To further strengthen Ilmor's capabilities, therefore, DaimlerChrysler will take a higher stake in the company, and give Mario Ilien and his team full access to the technical innovations available at Mercedes-Benz."

Should Hubbert's plan come to fruition, Mercedes, and McLaren, would move a step closer to emulating the likes of Formula One rival Ferrari, which builds its race cars entirely in-house. DaimlerChrysler already owns 40 per cent of the TAG McLaren Group which runs the McLaren team.

"In working closer together and organising the co-operation in an even more structured way, we can be as efficient as those teams that claim the pre-requisite of success is to work under one roof," Hubbert explained.

No mention was made of McLaren, which is in the final throes of completing Paragon, its new British headquarters, moving to Germany to link up with Mercedes.