F1’s 2026 pecking order is changing as Mercedes F1 suffer significant cost cap restrictions

A Historic Regulatory Reset

The Mercedes AMG F1 team certainly hit the ground running at the start of the 2026 season which has seen the biggest change in engine and car regulations in the history of the sport. For this season, the cost cap restricting the amount the teams spending was raised from $135m to a whopping $215m.

This substantial increase takes into account the major changes in the regulations together with the fact that previously expected expenditure which has now been folded in. The teams are also now allowed a $2m rollover sum from year to year, meaning unused allowances are no longer lost.

Both Red Bull and McLaren who were involved in the dog fight for the drivers’ championship in 2025 have admitted they started late on their 2026 projects, but both Ferrari and Mercedes were committed in the early summer to the following year’s project.

Early Success and the Ferrari Chase

Such was the dominance of the W17 and its power unit, Mercedes were the last front-running team to bring an upgrade to their car at round six in Montreal which saw them continue their romance with six from six Grand Prix wins.

At the next round in Barcelona, it was Ferrari who again brought improvements to their SF-26. The result – Lewis Hamilton’s first win for the Scuderia since joining the team some eighteen months earlier. Austria followed just a week later and the Ferrari strategy team elected to opt for a three-stop strategy for their drivers which opened the door for George Russell to take the win with just two changes of tyre.

Then at the British Grand Prix it was Ferrari’s Charles Leclerc who took the race win, as the team once again brought modifications to their car. Mercedes team boss Toto Wolff appeared rattled by the challenge from the Scuderia. “On the chassis, we’re always bringing small enhancements here and there, because we’re a little bit surprised that Ferrari can throw these huge updates at the car in the way they do,” the Mercedes team principal told Sky Sports F1.

Tensions in the Paddock

Wolff appeared to question Ferrari’s integrity by adding: “In my opinion they need to be running out of money soon, cost cap money, because we can’t do that. We’re simply lacking the buffer in cost cap to be able to bring so many parts in the way they do.”

Ferrari team boss Fred Vasseur hit back at Wolff’s comments over the rate of upgrades Ferrari were delivering. “I found it quite ironic coming from Toto and Mercedes,” said Vasseur. “But when Red Bull is developing or when Mercedes is developing they are geniuses; when we are developing we are cheating! I think you have to calm down with this. We didn’t bring more parts than Red Bull or another one. I don’t know if it was a joke or…”

When asked if he felt Wolff was saying Ferrari were cheating, Vasseur responded: “If you think that we overshoot the cost cap, for me, it’s going in this direction. I think it was better to avoid speaking.”

Given the FIA governance and audit procedures used to ensure the teams do not cheat and overspend beyond the limits set for each season, the comments from Wolff appeared strange, even prickly. The Ferrari boss went on to explain his team had chosen to upgrade little and often this year given a tenth gained five races earlier than waiting for a big upgrade would benefit the team for longer during the year.

The Sepang Upgrade Misstep

Mercedes’ second big upgrade of the year came this weekend at the Malaysian Grand Prix hosted in Sepang. Yet the week before in Azerbaijan, Sky Sports’ veteran pit lane reporter Ted Kravitz revealed during his notebook he believed Mercedes’ incoming upgrade was worth around half a second a lap. His secret source was said to be a Mercedes insider.

“When I suggested to Lando Norris the other day that some people in the paddock think the Mercedes upgrade that is coming is worth half a second per lap, he said ‘That’s ridiculous. What do you know? You’re just making it up.’

“Well, I’m not making it up. That was a suggestion from some sources within the Mercedes team, and they would know because they’ve done all the work and the development on it,” responded Kravitz.

“Lando said, ‘Any upgrade these days only gives you two-tenths of a second, maximum, so there’s no way they can bring half a second to the car.’ We will see.” Pete Bonnington, Kimi Antonelli’s engineer was asked live for his opinion on how much lap time the new upgrades would bring. He was coy with his response: “The upgrade will be what the upgrade is worth.”

In fact the much-anticipated upgrade Mercedes have brought, in Toto Wolff’s own words appear to have set them back “3-4 tenths of a second.” Now there are questions about how well Mercedes have indeed managed their spend this season and whether they are too close to the cost cap allowance.

The Cooling Vest Controversy

The FIA are expected to declare the Grand Prix on Sunday as a “heat hazard” thus triggering a regulation which allows the drivers to don a cooling vest. This apparel is attached to a water pump and a dry ice reserve which pumps coolant through the vest the drivers then wear during the Grand Prix.

When asked about his cooling vest for what is expected to be the most severe race of the season in terms of heat and attrition for the drivers, George Russell made a shocking revelation. “I would like to wear the cooling vest this week, and I would like to wear it next week (in Singapore). But the team asked me, ‘Look, we can develop it, and we can put the money towards it but at a cost when we are trying to develop the car within the budget cap.'”

If a team decides not to fit cooling vests for its driver’s when the FIA declares a heat hazard, it must increase the weight of their cars with ballast by 5kg, to prevent anyone attempting to gain an advantage.

This revelation over Mercedes cost cap decisions from Russell is truly shocking. Whilst other motorsports’ active cooling vests, along with their pumps and cooling systems cost in the region of $5,000 – it is only to be expected that for F1 the price would be significantly more. Yet realistically this should only be a five-figure sum, revealing Mercedes is sailing very close to the wind in terms of the cost cap restriction this season.

A Shifting Championship Picture

This also explains Toto Wolff’s irritation at Ferrari’s regular upgrades during the summer, given he knew his team were unable to follow suit. Clearly Mercedes front-loaded their launch car with development budget others used during the season and with the last big upgrade of the W17 failing to deliver, the rest of the year may see a change in the pecking order.

McLaren and Red Bull have been closing in on the Silver Arrows in the last six Grands Prix, which has seen Mercedes claim just one pole position with George Russell last time out in Baku. Today Max Verstappen was dominant in qualifying for the Malaysian Grand Prix, some 3/10ths of a second quicker than Lewis Hamilton in second place and a whopping half a second faster than Mercedes lead driver Kimi Antonelli.

Join the discussion below

Would you like to see more TJ13 Formula 1 coverage? Add us to your favourites list on Google to receive trusted F1 news.

Senior editor at  |  + posts

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.

In addition to editorial duties, Andrew is particularly interested in how media narratives shape fan perception of Formula 1, and how reporting can balance speed with accuracy in an increasingly digital news environment.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Discover more from TheJudge13

Subscribe now to keep reading and get access to the full archive.

Continue reading