The shift is part of a series of changes the team is making to help it return to the top of the F1 grid, with Allison returning as technical director and Elliott taking on the role of chief technical officer.

This bold move comes 20 months after Allison initially assumed the CTO role, after Elliott decided he didn’t have the skills best suited for his position as technical director.

After a rough start to the 2023 season and some soul-searching by the team, Elliott agrees with Allison that the team would be better off if they changed roles.

Speaking of the move, Mercedes team principal Toto Wolff told Autosport: “It was largely driven by Mike Elliott, who was in charge of the process.

“So, we switched roles. Mike was promoted to CTO because he had a great scientific mind. James Allison went back to his technical director role, reporting to Mike.”

While Allison previously served as CTO, which meant he only worked three days a week, Elliott will be working full-time. It is also understood that Allison will continue to participate in the America’s Cup project he participated in during his tenure as CTO.

Wolff explained that Elliott felt that Allison was better suited for the technical director role, where he had more practical responsibility for the car and was focused on the wider organization playing to his strengths. Technological development has worked in his favor.

Wolff added: “Mike’s assessment is that his introspection is really admirable because with James we have a gladiator on the field and the Army is going to go through the fire with him.”

“Mike came to the conclusion that the way he approached things, his skills, were best used to develop the future of the organization: from technical capabilities to people capabilities, and put together structures that could be successful for many years to come.

“It’s about creating a structure that can continue to succeed well into the next generation. We’re seeing massive changes in technology development, artificial intelligence and machine learning.

“At the same time, look at how a modern Formula 1 team would be organized and structured: what innovations could be introduced.

Mike Elliott, Mercedes-AMG Technical Director

Photography: Mark Sutton/ motorsport pictures

“Mike thinks he’s in the best position there and obviously he’s a super capable engineer who is very credible and respected in the organization. He’ll be a coach and a sparring partner to the most senior.

“I’m really glad that Mike himself made the decision to take the role, he and James both came to that conclusion because we had the talent of both of them.”

In addition to the Allison and Elliott swaps, Mercedes has also changed the job responsibilities of its senior designers to better adapt the team to a cost-cap environment.

Wolff added: “John Irwin as chief designer works very differently under the cost cap because you have a lot of extra work on top of the creative part of designing the car.

“What happened was that the chief designer became the cost cap administrator.

“So, we’ve split the role. John continues as lead designer, but we’ve delegated (his deputy) Giacomo Tortola to be director of engineering.

“This meant that John could focus on the details of the car’s design, while Giacomo took care of the design office and organizational development.”

Mercedes is currently working on a number of updates for its W14, which it hopes will help it close the gap on leader Red Bull. Changes to the car will include a revamp of its sidepod concept.

With Allison returning as technical director, the team will continue on its current direction, Wolff said.

“We now have a path that we believe is right,” he said, “just a different personality and a different management structure.”