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Home » Ferrari secures first $3 million ADUO allocation for power unit upgrades

Ferrari secures first $3 million ADUO allocation for power unit upgrades. Ferrari receives first $3 million ADUO boost as engine development battle intensifies.

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Ferrari is approaching the proposed 2027 Formula 1 engine regulations with caution, as the new rules could introduce significant changes, particularly regarding power units. At the same time, Maranello has already received early indications regarding the first development budget made available through the ADUO system.

The Italian team is currently evaluating whether the proposed shift to a 60-40 split between combustion and electric power would be beneficial, and in which areas such a change could offer advantages. Meanwhile, Ferrari has started to gain a clearer picture of the resources that could become available through ADUO concessions.

According to earlier reports, Ferrari and Audi were the two manufacturers most opposed to the proposed engine changes. Both companies feared that the ADUO concessions could lose much of their value if the internal combustion engine becomes more dominant, given the strength Mercedes and Red Bull have already demonstrated in ICE development.

Furthermore, such a scenario could allow those manufacturers to continue improving their power units, something Ferrari believes would undermine the original purpose of the concession system. The Scuderia hopes to reduce the performance deficit to the team led by Toto Wolff, but recovering a gap estimated at around 30 horsepower with a single upgrade package is considered unrealistic. New details have now emerged regarding Ferrari’s position on the matter and the broader discussions taking place among manufacturers.

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Ferrari has already used its first extra $3 million for engine development, but remains firm on power unit hardware

According to a report from AutoRacer.it, Ferrari agrees with the principle of restoring greater importance to the combustion engine. Such a move would reduce concerns for both drivers and engineers while promoting a more natural driving style, rather than forcing competitors to focus heavily on energy-saving strategies.

However, the first draft of the proposed regulations was not accepted because manufacturers felt there was not enough time to properly evaluate its implications. This uncertainty also affects how teams plan to allocate their development budgets for next season.

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Changes are expected to be made, but there is currently no clear timeline and the process could take some time. Any final decision will need to satisfy the manufacturers while also preserving the work already carried out under the ADUO framework.

In this respect, Ferrari is open to discussions but remains completely opposed to any modifications involving the hardware of the power units. Maranello’s position is firm and non-negotiable on this point.

The concern is that a regulatory change could allow rivals to make structural modifications to their internal combustion engines, effectively bypassing the principles on which the ADUO system was established. Ferrari believes that Mercedes and Red Bull should not be granted additional freedom to alter their existing power units.

The resources available to those trying to close the gap are already limited, and allowing leading manufacturers to continue developing key hardware components would make the challenge even greater, potentially rendering any recovery effort almost impossible. As a result, discussions are focusing on compromises involving more efficient calibration methods and improved software management. Several potential solutions are currently being considered.

At the same time, Ferrari, together with Honda and Audi, has already invested significant effort into developing its new power unit package. The updated engine is expected to debut after FIA homologation, potentially around the Belgian Grand Prix.

Sources indicate that Ferrari has already received and cautiously utilized the first $3 million of additional budget made available through the ADUO mechanism, as the team is confident it will remain within the 2% performance threshold. However, substantially greater resources would be required to implement major upgrades, which would become available if the deficit reaches the 4% level.

Before any new components can be introduced, they must successfully complete validation on the dyno. While obtaining an “ADUO 1” concession and the possibility of an early installation represents a positive step, Ferrari does not consider it sufficient. The Scuderia is targeting two homologation opportunities in an effort to close a significant portion of the performance gap to Mercedes.

May 31, 2026David Carter
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David Carter

David Carter is a ScuderiaFans editorial byline for race-weekend analysis, strategy and Ferrari performance. His coverage examines the decisions and developments that shape each Grand Prix.

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