FIA causes shock across the paddock: Red Bull named best engine, Mercedes allowed to make updates

GPblog can confirm that the FIA has provisionally informed teams that Red Bull currently possesses the strongest engine on the grid. As a result, the Milton Keynes-based operation will not be permitted to introduce performance updates under Formula 1's Additional Development and Upgrade Opportunities (ADUO) regulations.

The ADUO system was introduced as part of Formula 1's 2026 engine regulations to prevent manufacturers from falling too far behind while maintaining a competitive championship. Under the rules, engine suppliers that are deemed to be trailing the leading power unit by a certain percentage are granted additional development opportunities and financial allowances within the budget cap.

Manufacturers that are found to be at least 2% behind the benchmark engine can introduce one performance update in both 2026 and 2027. If the gap exceeds 4%, they are permitted two updates during each season.

The system also provides additional budget cap flexibility. Engine manufacturers trailing by between 2% and 4% receive an extra $3 million, while larger deficits unlock even greater allowances. A gap of 4% to 6% is worth $4.65 million, 6% to 8% earns $6.35 million, and manufacturers more than 8% behind receive an additional $8 million under the cost cap.

The FIA was expected to assess the competitive order of the new power units following the Canadian Grand Prix. According to information shared with teams ahead of the Monaco Grand Prix weekend, Red Bull-Ford has been identified as the current benchmark.

Mercedes had widely been viewed as the manufacturer most likely to lead the field when the new regulations were introduced. However, the FIA's assessment reportedly places the German manufacturer around 2% behind Red Bull's power unit. That means Mercedes is eligible to bring performance upgrades despite being considered one of the frontrunners.

Ferrari is understood to be approximately 4% behind Red Bull, placing the Italian manufacturer in a position to benefit from even greater development opportunities. Audi reportedly sits between 4% and 6% behind the benchmark, while Honda faces the biggest challenge, with sources indicating a deficit of between 6% and 8%.

Speaking after the Monaco Grand Prix, Red Bull team principal Laurent Mekies stopped short of confirming the FIA's findings. He said: “It’s a bit early to comment on that. As a team we have received information, but I believe the FIA has not made it public yet. So we are waiting for the official confirmation from F1.”

Multiple sources have told GPblog that Red Bull has indeed been designated as having the best engine—and that’s not all for Red Bull. Not only are they barred from making updates themselves, all competitors are allowed to. While Mercedes was regarded throughout the paddock as having the best engine on the grid, the FIA has placed them 2% behind. Even Mercedes may therefore introduce an engine update.

The other figures are also out in the open. Ferrari trails Red Bull’s internal combustion engine by 4%, Audi by 4–6%, and Honda by a startling 6–8%.

Having built the strongest power unit under Formula 1's new regulations, the team now faces the prospect of watching its rivals steadily close the gap through additional development opportunities over the next two seasons.

For Red Bull, the challenge may no longer be building the best engine. It may be holding onto its advantage.