The FIA has applied its Additional Development and Upgrade Opportunities (ADUO) system to Formula 1 power units for the first time, with Ferrari and Mercedes among the manufacturers benefiting from the new concessions. According to reports from The Race, Red Bull’s internal combustion engine has been classified as the current technical benchmark, preventing the Anglo-Austrian team from accessing any development allowances.
As a result, rival manufacturers will be allowed to introduce performance upgrades supported by additional dyno testing hours and exemptions from certain budget cap restrictions. The decision represents one of the first major interventions designed to prevent the competitive order from becoming too heavily influenced by a single manufacturer under Formula 1’s new generation of power units.
The introduction of ADUO is intended to provide a structured mechanism that allows manufacturers who fall behind to recover performance without completely disrupting the competitive balance of the championship. While Formula 1 has traditionally relied on open development races between manufacturers, the modern regulatory environment increasingly includes measures aimed at preventing long-term technical dominance.
The FIA’s evaluation paradox: only the internal combustion engine counts
Formula 1’s increasingly complex regulatory framework has now delivered its first verdict on the power unit front, reshaping the competitive development landscape ahead of the new technical cycle. During the Monaco Grand Prix weekend, teams were formally informed of the FIA’s assessment under the ADUO mechanism.
The findings, revealed by The Race, have raised eyebrows because they appear to contradict what fans, engineers, and teams observe on track. While Mercedes’ power unit is widely regarded as the benchmark package in Formula 1 and has been praised throughout the paddock for its overall efficiency and performance, FIA technical inspectors identified the engine developed by Red Bull Powertrains in partnership with Ford as the strongest unit under the ADUO evaluation process.
This apparent contradiction stems entirely from the specific criteria used by the FIA. The assessment used to determine eligibility for development concessions focused exclusively on one component: the internal combustion engine.
The hybrid systems, which have become the defining performance differentiator in modern Formula 1, were deliberately excluded from the calculation. Advantages generated through superior energy recovery, more effective deployment strategies, advanced MGU-K operation, battery management efficiency, electrical architecture, or energy optimization were not taken into account when determining ADUO eligibility.
This means that the overall performance advantage visible on race weekends does not necessarily correspond with the FIA’s technical benchmark for the purpose of development concessions. In practical terms, a manufacturer may possess the strongest complete power unit package while still being classified behind another competitor in the narrow area examined by the governing body.
The FIA decision that could spark debate at Ferrari and beyond
Because Red Bull excelled in the combustion-engine metrics used by the FIA, it was classified as the reference manufacturer and therefore lost the right to introduce corrective development upgrades under the ADUO framework. The exact mathematical criteria used by the FIA remain confidential. The governing body has intentionally avoided publishing the calculations within the regulations in order to prevent manufacturers from designing engines specifically to exploit the system.
The FIA reportedly feared that teams could intentionally underperform in certain benchmark areas during testing, creating the appearance of a competitive deficit and thereby unlocking development concessions that would otherwise not be available. In theory, such a strategy could manipulate the FIA’s assessment process and allow manufacturers to gain access to additional upgrades unfairly. By keeping the methodology confidential, the governing body believes it can preserve the integrity of the system while ensuring that development opportunities are granted only to manufacturers genuinely in need of assistance.
Nevertheless, the outcome has already generated discussion throughout the paddock. Mercedes continues to dominate in overall power unit performance, helping drivers Andrea Kimi Antonelli and George Russell remain highly competitive, yet the manufacturer still qualifies for ADUO concessions because the FIA’s evaluation focuses solely on combustion-engine performance.
For many observers, this represents one of those uniquely Formula 1 situations in which the reality seen on track differs significantly from the technical definitions contained within the regulations. It is precisely these nuances that often generate debate among teams, engineers, analysts, and fans.
Ferrari qualifies for the over-4% ADUO category
The ADUO system structures development opportunities according to percentage deficits relative to the benchmark power unit. Mercedes was judged to be more than 2% behind the reference engine and therefore qualified for a single development homologation. Ferrari, meanwhile, was placed in the category representing a deficit greater than 4%.
As a result, the Maranello-based team is entitled to two development steps that can be distributed between the current season and the following campaign. These additional homologation opportunities could prove particularly important as Ferrari seeks to close the gap to its main rivals and improve the overall competitiveness of its power unit package.
It is important to note that being placed in the same category as another manufacturer does not imply equal performance levels. Ferrari and Honda, for example, may both be classified in the over-4% bracket while still having significantly different power unit characteristics. The classification simply indicates that both manufacturers are more than 4% behind the Red Bull benchmark according to FIA measurements.
The system therefore groups manufacturers according to broad performance ranges rather than precise competitive rankings. This distinction is crucial because it prevents incorrect assumptions regarding the relative performance of different power units. In other words, Ferrari’s placement within the over-4% category does not mean that its engine performs identically to Honda’s. It simply confirms that both manufacturers fall beyond the same threshold when compared with the benchmark established by Red Bull Powertrains and Ford.
The financial and technical advantages behind ADUO
The real significance of the ADUO system lies not only in the additional homologation opportunities but also in the financial and operational benefits attached to them. Power unit development requires enormous investment, sophisticated engineering resources, advanced simulation tools, and extensive dyno testing, all of which are normally constrained by Formula 1’s budget cap regulations. The development of modern hybrid power units involves thousands of hours of analysis, testing, validation, and optimization.
Mercedes’ single homologation opportunity comes with a crucial exemption worth $3 million and an additional 70 hours of dyno testing. These benefits are particularly valuable because additional dyno time allows engineers to validate upgrades more quickly and gather performance data that would otherwise be impossible to obtain within standard limitations. In a sport where fractions of a percent can determine championship outcomes, even relatively small increases in testing opportunities can have a substantial impact.
The concessions increase progressively as the measured performance deficit grows. This approach reflects the FIA’s intention to create a structured recovery path for manufacturers facing larger competitive disadvantages.
Honda receives the largest ADUO package
Manufacturers with a deficit between 4% and 6%—the category that includes Ferrari—receive an allowance worth $4.65 million along with 100 additional dyno testing hours. For Ferrari, these benefits could be particularly significant. The Scuderia now has access to additional financial flexibility and valuable development resources that could help accelerate improvements to its power unit over the coming seasons.
The system then scales upward through several clearly defined tiers. Teams classified with a deficit between 6% and 8% receive $6.35 million and 150 additional dyno hours, while those between 8% and 10% gain $8 million and 190 extra testing hours. At the top end of the scale sits a recently expanded concession package that appears particularly beneficial for Honda.
Having been assessed as more than 10% behind the benchmark, the Japanese manufacturer is entitled to an additional $11 million in development spending and a remarkable 230 extra dyno testing hours. Such a substantial allocation of resources demonstrates the FIA’s determination to prevent any manufacturer from becoming permanently uncompetitive under the current power unit regulations. The governing body clearly wants every engine supplier to retain a realistic opportunity to improve and eventually challenge at the front.
This substantial support package could therefore have a major influence on the future competitive order in Formula 1, giving Honda the resources required to address the shortcomings that have left it significantly behind under the FIA’s ADUO evaluation system.
Whether these development concessions ultimately succeed in reducing the performance gaps remains to be seen. However, the first implementation of ADUO has already reshaped the strategic landscape for engine manufacturers. Ferrari, Mercedes, Honda, and the other suppliers now have a clearer picture of their development opportunities and limitations as the championship moves deeper into Formula 1’s next technical era.
For Ferrari in particular, the allocation of two development steps, additional spending flexibility, and 100 extra dyno hours could prove to be an important opportunity. The Maranello team will now be expected to make full use of the tools provided by the ADUO framework as it works to close the gap to the benchmark established by Red Bull and strengthen its position in future championship battles.
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