Formula 1’s governing body has issued a stark warning that some manufacturers could be driven out of the sport if new regulations leave them trapped in a cycle of underperformance.
The 2026 season ushered in a major overhaul of Formula 1 regulations, particularly on the power unit side. The changes attracted several new manufacturers to the grid, including Audi, Red Bull-Ford and General Motors.
While Audi and Red Bull-Ford have already begun competing as power unit suppliers, General Motors is set to enter the championship officially in 2028. Until then, the Cadillac F1 team will continue using Ferrari engines.
Meanwhile, Honda has returned as a factory partner to Aston Martin following the end of its highly successful collaboration with Red Bull. However, the Japanese manufacturer has endured a difficult start to the season, reportedly struggling with power output issues.
FIA Defends Additional Development Support
The introduction of Formula 1’s engine cost cap in 2023 fundamentally changed how manufacturers can develop their power units. Unlike previous eras, companies can no longer simply spend their way out of performance deficits.
Recognising the potential risks of this system, the FIA introduced Additional Development and Upgrade Opportunities (ADUO) for 2026. The mechanism is designed to help struggling power unit manufacturers by granting extra development allowances based on how far behind they are compared to the leading engine supplier.
FIA Single-Seater Director Nikola Tombazis has now explained why the governing body considers the system essential to the long-term health of the sport.
“If I start from the beginning, from when these regulations were negotiated, that was four or five years ago,” Tombazis told SoyMotor.
“The first thing is that there was quite a big effort to bring new names into the sport. The second thing is that there was a concern that the newcomers would always be behind the more established engine manufacturers.”
According to Tombazis, Formula 1’s growing appeal to global automotive brands means the sport cannot afford to leave new entrants permanently uncompetitive.
“These car companies invest a lot to get in and feel that being humiliated would be a problem for their image and their involvement in the sport,” he said.
‘Permanent Poverty’ Threat
Tombazis highlighted how the budget cap has changed the competitive landscape compared to previous years.
“In the past, when you were behind, you spent a lot of money and eventually caught up, like what Honda did in 2017,” he explained.
“With the budget cap, you can’t say, ‘Let’s go all out, let’s hire more people.’ Your operating window is very limited.”
The FIA official warned that without mechanisms such as ADUO, manufacturers who fall behind could become stuck at the back of the field indefinitely.
“There was a concern that if you started behind, you could be almost condemned to permanent poverty,” Tombazis said.
“And that permanent poverty would lead to these OEMs car manufacturers leaving the sport. Because it’s clear they won’t stay if they’re always going to come in last and everyone’s going to be saying they’re terrible.”
Tombazis added that this fear of manufacturers becoming trapped in a cycle of poor performance was the primary reason behind the creation of the ADUO system.
As Formula 1 enters a new engine era, the effectiveness of those measures could prove crucial in determining whether the sport’s latest wave of manufacturers remains committed for the long haul.