The Fédération Internationale de l'Automobile (FIA) has officially announced that Mercedes has been permitted to implement upgrades to its power unit, despite vocal opposition from rival teams, most notably Red Bull Racing. This decision comes under the framework of the Additional Development and Upgrade Opportunities (ADUO) scheme, a set of rules introduced for the 2026 season to help manufacturers close any performance gaps that may emerge as the technical regulations evolve. Under the ADUO system, each power‑unit supplier is periodically evaluated against a benchmark that represents the fastest engine on the grid.
If a supplier falls more than two to four percent behind that benchmark, they are granted a limited number of additional homologations – essentially approved upgrades – for the following seasons. The aim is to preserve competitive balance without allowing unlimited development, which could drive costs out of control. The first assessment period covered the opening five rounds of the 2024 championship. After analysing data from those races, the FIA concluded that Red Bull's Honda‑derived power unit was the clear front‑runner.
Consequently, the governing body awarded extra upgrade slots to Mercedes, Ferrari, Audi and Honda, each of which was judged to be lagging behind the Red Bull engine by the stipulated margin. Although the FIA did not release a detailed press statement at the time, the outcome was confirmed by team personnel and leaked documents that surfaced online. The decision sparked controversy for several reasons.
Mercedes, whose works team had dominated the early part of the season by winning the first six Grand Prix events, was now receiving a technical advantage while Red Bull – whose driver Max Verstappen had managed only a single podium finish up to that point – appeared to be left to fend for itself. Verstappen publicly criticised the ruling, calling it unfair, while Mercedes team principal Toto Wolff questioned the transparency of the FIA's methodology, insisting that his outfit already possessed "the most powerful power unit" in the field. After the summer break, the FIA completed a second evaluation period that concluded with the Hungarian Grand Prix. The results of this second review were made public alongside the earlier findings.
The statement clarified that for the first period, Mercedes fell within the two‑to‑four‑percent performance window and would therefore be allowed one extra homologation in 2026 and another in 2027, together with modest increases to the cost cap and dyno‑testing allowances. Audi, Ferrari and Honda were assessed as being more than four percent off the pace, granting them two additional homologations for each of the next two seasons, along with corresponding financial and testing allowances. The second‑period announcement delivered a further blow to Red Bull.
The FIA noted that no additional homologations would be granted to any power‑unit manufacturer for the upcoming period. In practical terms, this means that Red Bull's engine is now considered to be within two percent of the best unit on the grid – effectively confirming that it remains the benchmark or is at least very close to it.
Had any of the other manufacturers improved sufficiently to overtake Red Bull after June, the British team would have qualified for its own upgrade, but the data showed otherwise. At the time of writing, the championship standings reflect the impact of these technical decisions. Mercedes driver Kimi Antonelli leads the drivers' championship, followed by teammate George Russell and Ferrari's Lewis Hamilton, who is now in sixth place, a full 130 points behind the Italian. In the constructors' tally, Mercedes sits 87 points clear of Ferrari, while McLaren – which also uses a Mercedes engine – has enjoyed a resurgence, with world champion Lando Norris securing victories in the two most recent races.
Despite having the green light to introduce their 2026 upgrade as early as June, Mercedes has not yet revealed whether it has already fitted the new components to its cars. Ferrari, Audi and Honda are believed to have each applied one of their two allotted upgrades for the upcoming season, but the full extent of their development programmes remains confidential. Nikolas Tombazis, FIA's director of single‑seater motorsport, defended the robustness of the ADUO review process. He emphasized that the analysis was exhaustive and that the FIA has a high degree of confidence in its conclusions, while also noting the need to protect the intellectual property of the teams involved.
Tombazis acknowledged that this is the inaugural year for ADUO and that the framework may be refined in future discussions with the power‑unit manufacturers. The third ADUO review window opened with the Dutch Grand Prix and will run through to the Mexican Grand Prix on November 1. As the season progresses toward its climax, the balance of power on the grid will continue to be shaped not only by driver skill and team strategy but also by the strategic deployment of these sanctioned upgrades. Fans can look forward to the upcoming Italian Grand Prix at Monza, Ferrari's home race, scheduled for September 4‑6, where the interplay of technical upgrades and on‑track performance will be on full display.