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The FIA allowed Mercedes and Ferrari to upgrade their engines this season after Red Bull was deemed the best engine in Formula 1.
As part of the Additional Development and Upgrade Opportunities (ADUO) system, the FIA judged the pecking order of the 2026 power unit manufacturers – Red Bull, Mercedes, Ferrari, Audi and Honda.
Sky Sports News The document sees Mercedes lagging more than two percent behind Red Bull’s power unit, so will be given an engine upgrade this year, while Ferrari, Audi and Honda will be given two upgrades as they are believed to be more than four percent behind Red Bull.
As the benchmark power unit manufacturer, Red Bull, who are developing their own engines for the first time in F1, will not receive engine upgrades.
Apart from the upgrade for this season, Mercedes is likely to have one upgrade for 2027 while Ferrari, Audi and Honda are likely to have two.
Lewis Hamilton also said Sky Sports F1 Teams were informed of the ADUO announcement during the Monaco Grand Prix weekend.
“Red Bull has the most powerful engine, Mercedes is second, and then we are behind (Ferrari),” he said.
“We have these tokens now to try to develop and close the gap. But it’s like an eight-to-10-month project, so it’s not something we can do next week. We’re going to push as hard as we can to see how we can close it.”
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Lewis Hamilton was full of praise for his Ferrari team after finishing second in Monaco
The ADUO result was a surprise as Mercedes had by far the best car during the six rounds and were strong in the straights.
The FIA doesn’t tell teams how it measures power units, so power unit manufacturers don’t manipulate certain areas to try and qualify for upgrades.
FIA single-seater director Nicolas Tombazis previously said: “It is important to make clear that ADUO is not a sort of balance of performance mechanism.
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“A team or manufacturer will not suddenly get higher fuel flow rates or more or less ballast. This is actually a cost cap relief mechanism, where a PU manufacturer meeting the ADUO criteria within a review period is given the opportunity to develop its engine through a downward adjustment.
“It’s not to belittle but a manufacturer still has to build the best engine to win. It’s not a magic bullet, or like the FIA handing out brownie points to someone behind, it just gives them the opportunity to develop their power unit within the framework set by the technical regulations.”
Two more ADUO reviews will take place later this year, after the Hungarian Grand Prix at the end of July and the Mexico City Grand Prix at the beginning of November, which will affect the 2027 season.
How does ADUO work?
ADUO focuses on the performance of the internal combustion engine (ICE), the non-electric half of the power unit.
The FIA is measuring the performance of the power units at each race using a performance index that is not available to the media
This index is based on factors including weighting to account for input shaft torque, engine speed, MGU-K power and power sensitivity to lap time across measured laps.
ADUO will be granted to manufacturers that reduce the performance of the leading ICE by two percent or more.
Manufacturers falling between two and four percent behind will be given one chance to develop their power units this season and another next, while four percent or more behind will get two chances to improve in 2026 and two more in 2027.
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ADUO grants, however, are not cumulative within a season and will only be granted on the first occasion when a builder is deemed eligible.
There is also an accompanying financial mechanism with the rules under cost caps for power-unit manufacturers.
Builders lagging 2-4 percent will receive up to $3 million in allowances; $4.65m behind it from 4-6 per cent; From 6-8 per cent it is $6.35m; From 8-10 per cent it is $8m and, in the newly added extra bracket, it is $11m for manufacturers with a deficit of 10 per cent or more.
For the 2026 season alone, any manufacturer judged to be at least 10 percent behind can increase development by anticipating up to $8 million in future cost-cap periods.
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