Formula 1 is on the verge of one of its biggest technical overhauls in decades. The 2026 season will mark a new chapter with five power unit manufacturers — Ferrari, Mercedes, Red Bull-Ford, Honda, and Audi — while Renault bows out. To keep the playing field level, the FIA has approved a new rule framework called “ADUO” (Additional Development and Upgrade Opportunities), designed to ensure that no manufacturer is left hopelessly behind.
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What is ADUO?
The FIA’s new ADUO system acts as a safety net for manufacturers who fall significantly short on performance. From 2026 onward, the FIA will monitor all power units throughout the 24-race season and evaluate performance gaps at rounds 6, 12, and 18. If a particular manufacturer’s engine is lagging well below the average benchmark, ADUO can be activated to grant them specific recovery allowances.
These allowances include:
- Permission to alter PU specifications: Normally locked before the season, manufacturers under ADUO can revise their designs mid-season.
- Relaxed cost caps: Additional development budgets can be approved temporarily.
- Extra dyno and testing hours: Teams get more time to refine their engines on the test bench.
- It’s essentially a “performance support” clause — a controlled way to let struggling manufacturers catch up without distorting the spirit of fair competition.
Why Now?
The timing of ADUO is crucial. The 2026 regulations bring the most radical hybrid overhaul since the V6 turbo-hybrid era began in 2014. The next-generation power units will have a 50-50 split between internal combustion and electric power, alongside sustainable fuels.
Overall view of the RA621H power unit supplied by Honda to Red Bull and AlphaTauri in the 2021 F1 seasonEven long-established teams admit the challenge is daunting. Mercedes dominated the 2010s because they nailed the initial hybrid regulations early. Now, the FIA wants to avoid another such runaway advantage. If one manufacturer finds a “silver bullet” solution and others fall years behind, the sport risks years of uncompetitive seasons.
ADUO is the FIA’s insurance policy — a mechanism to keep the grid compact, encourage close racing, and prevent any single manufacturer from defining an era.
Tackling Cost Cap Inequalities
Alongside ADUO, the FIA will introduce cost cap flexibility for power unit suppliers dealing with reliability crises. In the hybrid era, several teams have been hamstrung by cost restrictions that limited their ability to fix chronic issues mid-season.
From 2026, if a PU supplier can prove they are at a “significant disadvantage” because of reliability failures or unforeseen technical hurdles, the FIA can grant temporary relief on budget limits. This aims to prevent smaller or newer manufacturers like Audi from suffering long-term setbacks just because of financial limitations early in their development cycles.
A Competitive Five-Manufacturer Grid
For the first time in over a decade, F1 will have five active engine suppliers — a rare occurrence in modern motorsport.
- Ferrari continues as the sport’s oldest name.
- Mercedes seeks redemption after losing its hybrid-era dominance.
- Red Bull-Ford begins its first full PU program since ending its Honda partnership.
- Honda returns as a full works supplier after a brief hiatus.
- Audi makes its long-awaited debut following years of development.
This mix of legacy and new entrants has the FIA walking a tightrope between innovation and fairness. The governing body wants all five to compete meaningfully rather than see one dominate while others languish at the back.
The Bigger Picture: Concorde Agreement Nearing Completion
The ADUO system comes just as the new Concorde Agreement — the contract defining F1’s financial and regulatory framework — nears finalization. FIA President Mohamed Ben Sulayem confirmed that the talks with Formula One Management (FOM) are progressing smoothly, emphasizing a shared commitment to growth and sustainability.
He stated, “Our top priority is safety, supporting young driver development, and ensuring F1 grows sustainably across the globe.”
The ADUO policy fits neatly into that philosophy. By combining technological innovation with balanced competition, the FIA hopes to avoid one-sided dominance and deliver consistently close racing — something fans and teams have long demanded.
The Road Ahead
The 2026 season could define the next decade of Formula 1. The combination of sustainable fuels, expanded electric output, and now, the ADUO rule, signals a future where performance gaps are narrowed without dulling the technical challenge.
If successful, the ADUO framework might not just make racing closer — it could make every power unit supplier believe they have a fighting chance. And that, in Formula 1, is the true definition of competition.
