Electric Cars

A recent accord by the FIA will permit Formula 1 teams to continue conducting TPC (Testing of Previous Cars) sessions, a practice that has grown in importance for vehicle development and nurturing emerging talent. These sessions, typically utilizing cars at least two years old, enable teams to fine-tune engineering and give promising drivers crucial track experience. Notably, teams like McLaren and Red Bull have extensively leveraged TPC to refine their current machinery and evaluate future prospects, leading to the establishment of a new FIA regulation that limits current F1 drivers to 1,000 kilometers in these older vehicles.

Looking ahead to the 2026 Formula 1 season, a substantial number of teams are poised to transition to new engine manufacturers. This shift presents a unique challenge for TPC continuity, as older cars are intrinsically linked to their original power unit suppliers. Following extensive dialogue, the FIA has intervened, implementing a mandatory two-year supply obligation. This means engine manufacturers with expiring contracts will be compelled to provide their previous client teams with current-spec power units for TPC activities. While this ensures testing can proceed, industry sources from the Belgian Grand Prix weekend suggest that power unit costs for TPC will significantly escalate, potentially doubling. Despite this, teams are likely to absorb the increased expenditure, as TPC running is exempt from the sport's strict budget caps, allowing them to allocate additional funds without impacting their primary development budgets.

This strategic move by the FIA aims to maintain competitive parity and driver development opportunities amidst a period of significant technical transition in Formula 1. By ensuring access to necessary power units, even for those changing suppliers, the sport safeguards the vital role TPC testing plays in preparing for future seasons. While the financial burden on teams will be greater, the long-term benefits of sustained testing and talent development are deemed paramount for the sport's evolution and competitive health.

A pivotal agreement has been reached by the FIA concerning Formula 1 teams' ability to continue their Testing of Previous Cars (TPC) programs, particularly as the sport approaches the significant regulatory shifts of 2026. This development ensures that teams transitioning to new engine suppliers will still have access to current power units for testing purposes, facilitating a smoother transition and ongoing development. Nevertheless, this assurance is accompanied by a projected surge in costs for these power units, raising questions about the financial implications for teams, even if these expenses are exempt from the standard budget cap.

This new mandate underscores the FIA's commitment to maintaining competitive balance and fostering talent development within the sport. By requiring manufacturers to supply previous customers with engines for TPC, the governing body aims to prevent any competitive disadvantage stemming from contractual changes. While the financial burden on teams is expected to escalate, the fact that these costs operate outside the defined budget cap means that on-track development and junior driver programs can proceed without directly impacting primary competitive spending. This strategic foresight addresses a critical concern for teams navigating the complex landscape of Formula 1's evolving technical regulations.

Sustaining Testing Programs Amidst Engine Transitions

The FIA's latest ruling guarantees that Formula 1 teams will be able to maintain their TPC initiatives, which are vital for both junior driver development and crucial car evolution. This comes as a significant portion of the grid prepares for a change in engine suppliers in 2026, including notable shifts such as Sauber moving to Audi, Aston Martin partnering with Honda, Alpine transitioning to Mercedes power, and Red Bull, alongside Racing Bulls, developing their own new power units. The agreement ensures that despite these supplier changes, teams will still have access to the necessary power units from their former partners for two years, preventing any disruption to their established testing protocols.

TPC activities have emerged as an increasingly integral component of Formula 1 operations, allowing teams to rigorously test and refine aspects of their vehicles and assess new talent without the constraints of official in-season testing limits. Past instances, like McLaren's intensive program and Max Verstappen's development testing with a two-year-old car, have highlighted the strategic importance of these sessions. The FIA's intervention, which now caps TPC mileage for current F1 drivers at 1,000 kilometers per season, aims to standardize the practice while this new agreement addresses the unique challenges posed by significant engine supplier transitions, ensuring an uninterrupted pathway for team and driver progression.

Escalating Power Unit Costs and Budget Cap Considerations

While the FIA's agreement resolves the logistical challenges of TPC testing during engine transitions, it introduces a substantial financial consideration: the projected doubling of power unit costs. Although the governing body has mandated the supply of current engines to former customer teams for the next two seasons, it has deliberately refrained from imposing any price caps. This autonomy granted to suppliers means they are at liberty to determine their own pricing structures for these older power units. Reports from paddock sources during the Belgian Grand Prix weekend have already indicated that at least one major power unit supplier intends to double the cost of its engines compared to current prices.

However, this anticipated increase in expenditure for TPC operations is not expected to significantly burden teams' core competitive budgets. The key lies in the fact that TPC testing expenses fall outside the Formula 1 budget cap. This distinction means that teams can absorb the higher costs without compromising their primary development and operational spending for the upcoming seasons. As one team insider succinctly put it, "Any expense not included in the budget cap doesn’t seem to be an area where F1 teams are looking to save money nowadays," suggesting that teams are prepared to invest in these critical testing programs given their importance to long-term performance and driver readiness.