Although Toto Wolff says he is "for" a cost cap, the Mercedes chief concedes that some big teams just "could not" adhere to it.
FIA President Jean Todt had planned to introduce a cost cap into Formula One, however, a few weeks ago announced it would not take place.
The Frenchman blamed F1's Strategy Group, which comprises six teams including Mercedes.
The six have come in for some criticism from F1's smaller teams, who fear for their future in the sport.
Wolff, though, has defended his team's stance.
"I was for a cost cap actually," Wolff told N. "But we realised some of the other big teams could not follow that path.
"Ferrari are a good example as...
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