F1’s next big milestone for its all-new hybrid engines is just around the corner. Following the Canadian Grand Prix, the FIA will publish its assessment of the state of the various Formula One manufacturers’ power units and offer Additional Development and Upgrade Opportunities (ADUO) to those which are significantly underpowered.
But questions arise over whether the recent V8 announcements mean Honda could game the system.
Learning from 2014: Preventing a New Mercedes Era
Learning from the mistakes of 2014, which saw Mercedes build a dominant power unit and go on to win the constructors’ championship eight consecutive seasons in a row, F1’s governing body designed the ADUO for the new engine era. The goal is to prevent power unit (PU) manufacturers from being trapped with uncompetitive hardware for years.
It was expected that the key to designing and building a successful powertrain for F1’s current era of engines would be the performance of the internal combustion engine (ICE), which both powers the rear wheels and at times acts as a generator for electrical energy.
The Newey Prediction: The ICE as King
Having announced he was leaving Red Bull Racing and whilst on garden leave before joining Aston Martin, F1’s guru designer—Adrian Newey—predicted that the ICE would be key to the future performance of the new 2026 power units.
“I think there has to be a big chance that it’s an engine formula at the start… There has to be a chance that one manufacturer will come out well on top and it will become a power unit-dominated regulation, at least to start with,” German publication AMuS reported Newey as saying early in 2025. “I can’t remember another time in Formula 1 when both the chassis regulations and the engine regulations have changed simultaneously… the chassis regulations have been very much written to try to compensate for the power unit regulations.”
Honda’s Struggle and the 2% Trigger
Little did he know at the time it would be his Aston Martin engine partner Honda who would be the manufacturer in biggest need of the ADUO. The trigger for a manufacturer to receive the additional upgrade opportunities was simple: any ICE more than 2% down on power behind the benchmark manufacturer would qualify.
Further, if the power deficit was greater than 4%, additional allowances for upgrades would be allowed. The FIA’s Single Seater Director, Nikolas Tombazis, recently revealed that the governing body had proposed a much more “forensic” measurement system during the drafting of the 2026 regulations. This more complex version would have factored in a wide array of secondary parameters—such as chassis-specific cooling efficiency and fuel-burn fluctuations—to isolate the engine’s pure performance from the car’s aerodynamics.
The Manufacturers’ Resistance to “BoP”
Yet the manufacturers argued that a more complex measurement would move F1 too close to the system used by the World Endurance Championship, which seeks to create a “Balance of Performance (BoP).” The likes of Mercedes and Ferrari strongly believed F1 should remain a meritocracy and that if the FIA’s measurement became too accurate, it would effectively “punish” the best engineers by giving everyone else a perfect blueprint of where they are lacking.
And so the ADUO was agreed to remain based on a simple measure of ICE power, ignoring the ‘dark arts’ of how it interacts with the rest of the design of the car and the hybrid system.
Revised Timelines and Tombazis’ Reassurance
The original timeline set was for the FIA to issue reports after rounds 6, 12, and 18 and subsequently allow any manufacturer in the defined deficit to upgrade their engines. However, the loss of the Bahrain and Saudi Grand Prix saw F1’s governing body decide the first round of the ADUO would kick in after the race in Montreal, which is now round 5.
With the first results imminent, Nikolas Tombazis once again insists the ADUO is nothing like the disliked BoP.
“A team or manufacturer will not suddenly get greater fuel flow rate or more or less ballast. It is, in fact, a Cost Cap relief mechanism, where a PU manufacturer meeting ADUO criteria during a review period is given an opportunity to develop its engine through a downward adjustment,” insisted the Greek-born official.
Financial Lifelines and Scaled Support
So there is no instant on-track advantage following the review, as the ADUO acts as a cost cap lifeline by allowing F1 manufacturers to spend more on R&D and introduces technical adjustments to their power unit. The level of assistance is directly related to the performance gap. So the further behind the manufacturer is of the leading PU, the more financial and technical leeway they are given.
While eligibility is strictly based on the Internal Combustion Engine (ICE), manufacturers can apply their granted upgrades to other components, such as turbochargers or control electronics. However, these benefits are not cumulative; manufacturers cannot “stack” multiple ADUO claims within a single season.
The Honda and Aston Martin Outlook
So with Honda trailing miserably and Aston Martin having completed just two finishes from 8 starts, it is likely they will receive the following allowance: $11m for a greater than 10% performance deficit together with a new element of support approved by the FIA.
There is now also a second cash element available to Honda—another $8m—however, this will be in the form of relief against future spending. So in effect, Honda will be borrowing the money from its own future budget of regular spend under the cost cap.
Borrowing from the Future
The $8m is available across the first two years of this era of F1 power, and it must be paid back over the final three years of the planned life of the current F1 power units. However, Honda can choose how to draw down and pay back this allowance with 100% available in year 1—or split across the first two years.
The payback cannot be more than 50% in a single season, so the option for Honda to wait until 2030 to pay back 100% is not on the table. However, with 2030 now potentially being the first season of the new V8 power units as announced by the FIA president, the Japanese manufacturer may be coy—opting for 50% payback in 2029 and the rest in 2030, which may never come.
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With over 30 years of experience in Formula 1 as an insider journalist, I have built trusted connections across the paddock, from race engineers and mechanics to senior team figures. At The Judge 13, I and a handful of trusted colleagues share exclusive Formula 1 news, expert analysis and behind-the-scenes stories you will not find in mainstream motorsport media.
A.J. Hunt is Senior Editor at TJ13, where Andrew oversees editorial standards and contributes to the site’s Formula 1 coverage. A career journalist with experience in both print and digital sports media, Andrew trained in investigative journalism and has written for a range of European sports outlets.
At TJ13, Andrew plays a central role in shaping the site’s output, working across breaking news, analysis, and long-form features. Andrew’s responsibilities include fact-checking, refining editorial structure, and ensuring consistency in reporting across a fast-moving news cycle.
Andrew’s work focuses particularly on the intersection of Formula 1 politics, regulation, and team strategy. Andrew closely follows developments involving the FIA, team leadership, and driver market dynamics, helping to provide context behind the sport’s biggest stories.
With experience covering multiple seasons of Formula 1’s modern hybrid era, Andrew has developed a detailed understanding of how regulatory changes and competitive shifts influence the grid. Andrew’s editorial approach prioritises clarity and context, aiming to help readers navigate complex developments within the sport.
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