Mercedes-AMG will pull out of Formula 1 following a year-long battle over the sport’s governing body.
The German automaker will make its first race in 2018, instead of 2021 as planned.
Mercedes-AmG chief executive Matthias Müller said on Thursday that the decision would not affect the production of its flagship sports cars, the F-class and the G-Class.
Müller said the sport needs a “more radical change” in order to better adapt to the Internet age.
Mercedes-AMGA is still looking for a solution, but the company will have to find one for 2019, when it will host its first public Formula One race in Berlin.
Merkel, whose party is in coalition with the opposition Social Democrats (SPD), said in January that Mercedes-AMSG would leave Formula 1 in 2019.
She said at the time that the sport could be revived through a merger with a new partner.
Merck and BMW are the two other companies involved in Formula 1, which is run by the FIA.
Mercedes is currently the only manufacturer participating in the sport.
MerchantsMercedes, BMW and Mercedes-Amercedes all had long-standing relations with the FIA before it was restructured in 2008.
They have had a close working relationship since then, but there were disagreements over how the sport should be regulated.
Merlin-AMAG will now have to decide how to handle a possible merger with an unnamed partner.
The decision comes amid the political tensions between the SPD and the Free Democrats (FDP), which are vying to become the new ruling coalition.
Merging with a smaller company could complicate matters further.
Mergers between companies such as BMW and Audi have been a topic of debate for decades, and a number of smaller companies have tried to take on the large automakers.
Merger talks are ongoing between BMW and Daimler AG, which owns Mercedes-BMW.
Mertz has long been interested in the Mercedes- AMG project.
But its CEO, Martin Seifert, said in November that he would prefer to keep the company as an independent entity.
Merzheimer said he was confident of winning a deal for the Mercedes car brand with a German company.
Merkels-AMGS will continue to run the Formula 1 racing series and the Daimlers team.
The sports car manufacturer is expected to make up its share of the Mercedes engine in the 2019 season.
Merlots-AMS is the sports car brand’s biggest competitor.
The brand sells cars in Europe and the United States.