Behind the debate over F1's future engines is a battle for control

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There is much more at stake than just a matter of technology behind the debate over the engine that will power the Formula 1 cars of the future. Over the past five years, the championship’s financial growth has been staggering: revenue has risen from $2.1billion in 2021 to $3.9bn in 2025, drastically changing the landscape. F1 teams have become companies capable of closing their annual financial statements with profits that, in some cases, have exceeded $100million - figures that were unthinkable just a few years ago.

The engine regulations that took effect this year were developed in a F1 landscape very different from today, one still heavily reliant on contributions from manufacturers that have been essential to the championship’s very survival. The compromise that shaped the current power unit arose from the need to bring in new automotive giants following the departure (and subsequent return) of Honda - and then the belated exit of Renault.

Fearing it would be only Ferrari and Mercedes left at the table, F1 accepted a series of compromises. In the short term, the move proved successful: Honda returned, Audi announced its official entry, and Red Bull launched its Powertrains project with Ford - a choice partly forced by the lack of credible alternatives.

Five years later, however, the landscape has changed. The new power unit did not have a particularly successful debut, and, above all, Formula 1 no longer depends so crucially on the financial contributions of the manufacturers. Recently, FIA Technical Director Nikolas Tombazis recalled how, in 2021, the manufacturers involved in defining the second generation of power units were convinced that, in the medium to long term, internal combustion engines would gradually disappear. The transition to electric power seemed inevitable, but five years later, that prediction has not materialized.

The experience gained during this period led Tombazis to clarify a specific point: “We need to protect the sport from the world macroeconomic situation, meaning we cannot be hostage to automotive companies deciding to be part of our sport or not.” The automotive market may take directions that do not necessarily align with what is best for F1. And while in the past the series was forced to yield to manufacturers’ demands in order not to lose vital funding, today it can sit at the negotiating table with strength, backed by the record revenue growth recorded in recent years.