Mercedes-AMG Petronas Could Dominate 2026 With Power Unit Advantage

The highly anticipated meeting recently convened by the FIA with manufacturers of the new generation of power units ended without yielding any concrete results. Ferrari was notably absent, unlike other major players.

The FIA’s technical leadership made a decision regarding the architecture of the new engines, and based on available information, this decision is unlikely to change in the near future. This represents a political victory for Audi and Mercedes, both of whom are keen on maintaining their current technological direction. Some manufacturers are pursuing this path to safeguard the significant investments they’ve already made in preparation for entering Formula 1. This notably includes Audi, which has taken over Sauber’s operations in Switzerland while concurrently developing new engines in Neuburg. Furthermore, it has been confirmed that Audi plans to establish a subsidiary in the United Kingdom to oversee its operational processes.

Audi Secures Investments, Mercedes Gains an Edge

Alongside the ongoing electrification of the automotive industry, the development of sustainable fuels is rapidly gaining traction as a viable alternative, with major players in the petrochemical industry increasingly jumping on board. During the recent meeting, manufacturers who are lagging behind failed to convince others that power units should not serve as a reference for road car technology.

“Mercedes has warmly welcomed the conclusions of the meeting, and for good reason: the team from Stuttgart is confident that they’ve designed the best engine among all the competitors. When this information is corroborated by a high-ranking manager from one of Mercedes’ client teams, it turns from speculation into fact. In short, Audi is pleased because its major investments have been validated, while Mercedes is celebrating because they believe they’ve achieved a technological breakthrough.” Even Mattia Binotto acknowledged that Audi had mapped out a five-year strategy for success. Mercedes, with its 15-year track record in Formula 1, has not had to invest as heavily. Their confidence stems from the belief that they hold a distinct advantage in developing new power units.

An exclusive insider report from Bahrain, obtained by the editorial team of an Italian publication, revealed a confidential statement from a senior official within a team set to use Mercedes engines in 2026, who requested to remain anonymous. The information sent a chill down the spine, hinting at a situation reminiscent of the early days of the turbo-hybrid era in 2014.

“This is a serious issue for a sport that aspires to broaden its appeal. If dominance from a single manufacturer wipes out uncertainty once again, public interest in Formula 1 could suffer a significant decline.”

“According to available information, Mercedes’ client teams for 2026—McLaren, Williams, and Alpine—could find themselves enjoying the same advantage that McLaren, Williams, and Force India had in 2014. In that year, teams without Mercedes engines faced tremendous challenges—particularly Ferrari, which paid the price for some risky decisions, such as placing the oil tank within the gearbox housing.”

“Additionally, Ferrari made a critical design mistake: their turbo was simply too small. If Mercedes truly enjoys such a large technological lead, there’s hope that other teams will be able to respond swiftly. A few more seasons of domination, similar to what we saw at the start of the turbo-hybrid era, could drastically diminish the sport’s appeal to audiences, drivers, engineers, and all those involved. And this is exactly what Liberty Media is keen to avoid.”