With new power unit regulations set to come into force in 2026, discussions around how they will look are already under way.
Early indications are that both Porsche and Audi are looking to enter Formula 1 if the regulations suit.
Most major manufacturers have shied away from entering Formula 1 in the turbo-hybrid era, due in part to the complicated power unit systems,the Honda/McLaren disaster and the dominance of Mercedes.
This looks to be changing, with discussions around the new power units already taking place, it would seem that more manufacturers are interested than in recent times.
Although both Porsche and Audi are part of the Volkswagen Group, they have complete control of their respective racing divisions. In theory this would allow both manufactures complete autonomy within Formula 1.
What are the reason for the sudden change of heart?
The news that manufacturers are taking a serious look at Formula 1is due to a number of different factors. Some are the proposed power unit regulations set for 2026 others are non power unit decisions.
The Salary Cap
The salary cap that has come into effect for this season (2021) limits teams to a max budget of $145million, this reduces to $135million from 2023. This give the idea of entering Formula 1 a more enticing prospect, gone are the days of over inflated budgets with little return.

The salary cap does include notable exceptions, including the drivers salary, however this will more than likely be added to the cap structure with a $30 million per year for both drivers being mentioned.
The limit to spending has opened the doors to the Formula 1, manufacturers can look at it as a profitable exercise, with less outlay than ever before.
Benefits to Losing?
A new rule that also came into effect was the decision to link Aero testing and CFD development to on track performance, in essence this is Formula 1’s version of the NHL/NFL draft.
Teams will gain or lose testing time dependant on their finishing position at the end of the season.
For example if Mercedes were to win the Formula 1 Championship they would get 90% or 36 runs in the wind tunnel, the team that were to finish last in the Championship would be allowed 112.5% or 45 runs in the wind tunnel.
The theory being that the teams at the back of the grid would be able to use the extra development to gain on the other teams around them.
This is an enticing rule for a new team, they would understand that although it is never good to finish last or lower than expected, it gives them the opportunity to develop the cars with more ease, this will only be beneficial if the team are able to take advantage of the extra time/runs.
What is a Power Unit
The biggest headache for Formula 1 is the complex nature of the Power Unit, the Power Unit has several different parts, including the Internal Combustion Engine (ICE), Turbo, MGU-K, MGU-H, Control Electronics and Energy Store. Each element needs its own Research and Development, each having its own complexities.
With Formula 1 already having restrictions on the amount of Power Unit parts that that a team can use before they incur grid penalties, getting any part of these components wrong can cut a team adrift extremely quickly.
The most complex component is the MGU-H, due to the nature of the component it needs the most investment, it is also an easy part to mis-develop. Getting this part wrong could see a team at the back for multiple seasons. Due to this most manufacturers saw it as an “investment black hole”.
Formula 1 and its current manufactures recognised that this was a barrier for any new manufacturer to enter the sport. They have, in principle allowed that the MGU-H can be dropped from the new regulations provided that Audi and Porsche commit to a long term entry to Formula 1.
MOTOR GENERATED UNITS
The MGU-H and MGU-K are part of the Energy Recovery System, the MGU-K feeds waste energy from decelerating wheels back into the Energy Store for later use. The MGU-H takes the excess gasses from the exhaust to feed the Energy Store.
MGU stands for Motor Generated Unit, in Formula 1 both the MGU-H and K take heat or thermal energy and convert it to electrical energy using a Motor System.
The complex nature of the MGU systems stem from how the system converts the energy from heat to electrical energy, essentially the system use a series of wires and magnets. When wires are placed in a rotating magnetic field they are able to produce an electrical current even when they are not connected to a power source.

The MGU-H, is connected to the Turbo, the excess gasses are used to rotate a turbine that turns a compressor, boosting the air intake to the engine, which increases the power output of the PowerUnit. The MGU-H is used to negate turbo lag, this is the delay form the driver pressing the accelerator and the power from the Turbo reaching the engine. Turbo lag stems from the fact the for the turbo to work effectively it needs the engine to run at full power to feed the energy into the system, when the driver accelerates, the energy from the exhaust gasses is sent to the Energy Store. Once the driver presses the accelerator the energy store feeds the compressor immediately thus eliminating the turbo lag.
The opportunity to expand the Formula 1 grid with teams from both Porsche and Audi, is almost to good to be true, with $500million budgets consigned to the past, the future could be one of closer competition, equality and stability.



