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Mercedes' sponsorship deal with Kingspan, a firm that made insulation material involved in the Grenfell Tower disaster, has ended a week after it was announced.
The Formula 1 team were heavily criticised over the deal, with survivors of the June 2017 tragedy describing it as "truly shocking".
"Both parties have subsequently concluded that it is not appropriate for the partnership to move forward at the current point in time," said Mercedes.
"We have therefore agreed that it will be discontinued with immediate effect."
Kingspan said: "We are deeply aware of the sensitivities raised in recent days."
Mercdes driver Lewis Hamilton, who could win his eight world title at this weekend's season-closing Abu Dhabi Grand Prix, distanced himself from the arrangement over the weekend, suggesting that the Kingspan logo might not remain on his car.
After last Wednesday's announcement of the sponsorship agreement, Grenfell United, a group of the disaster's survivors and bereaved families, said: "This news has shattered us." The group added at the time that it wanted Mercedes to "immediately sever your relationship" from Kingspan.
Kingspan says that its K15 insulation made up only 5% of the insulation in the block and was used without its recommendation. It points out that the exterior cladding, which it did not manufacture, was deemed by an inquiry into the fire to be the "principal reason" for how quickly it spread.
The June 2017 fire killed 72 people.
Both Kingspan and Mercedes emphasised that their deal was based around sustainability when it was announced. The company's logo appeared on Mercedes' cars for the first time at last weekend's Saudi Arabia Grand Prix.