Paddock ‘rumours’ suggest Mercedes rivals have now ‘broken through’ with their 2026 F1 power unit

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Mercedes are being backed as the manufacturer to beat under the new technical regulations in 2026, but their rivals may be much closer than expected.

The 2026 F1 regulations will see dramatic chassis and aerodynamic changes, with the power unit now being a 50/50 split between internal combustion and electrical power. Several teams have scrambled to develop their 2026 cars alongside, or at the expense of, upgrading this year’s machine.

No one will know where any of the teams are until they hit the track for winter testing. However, rumours in the F1 paddock believe that Mercedes will have the fastest power unit in 2026.

Mercedes staff have been playing down the speculation that they are on top with engine development. Likewise, James Vowles shut down talk about the German manufacturer’s advantage – his team Williams, Alpine and McLaren will be powered by Mercedes engines alongside the works team.

Mercedes’ rivals will hope to build competitive packages in 2026, with Ferrari searching for improvements on 2025, while Honda will partner with Aston Martin. Audi and Red Bull will become new manufacturers next year as they roll out their exciting projects.

Paddock ‘rumours’ suggest Audi have ‘broken through’ with 2026 power unit and are catching Mercedes

According to a report from Motorsport Italia, ‘paddock rumours’ say Mercedes have the strongest engine at the moment, while there is ‘high expectations’ for Ferrari and Honda. However, ‘almost no one knows anything about Audi and Red Bull Powertrains by Ford’.

The former will be the most exciting team to look out for in 2026 as they join F1 as a new outfit and engine supplier, taking over from Sauber. The German manufacturer have been working on the new regulations behind the scenes for the past few years.

Their development and progress have been kept a secret, but ‘rumours’ are now circulating that they could be close to Mercedes in 2026. The report states that Audi have ‘broken through the 400 kW barrier with their internal combustion engine’.

It has reached up to ‘over 540/550 horsepower’, with Mercedes being credited with 420kW, or ‘approximately 571 horsepower’. This puts Audi not far off their German rivals in the initial development stage.

Of course, these figures should be taken with a ‘pinch of salt’, as this is merely speculation rather than ‘hard data’. However, if the numbers are true, Audi could be much more of a threat to Mercedes than previously thought.

READ MORE: All you need to know about Sauber from team principal to 2026 Audi future

Can Audi be competitive in 2026?

It was reported last year that Audi’s engine was looking good for 2026. Now, with this latest report, they could be in an even better position.

The German manufacturer will keep Sauber’s driver pairing of Nico Hulkenberg and Gabriel Bortoleto in 2026. Audi have the perfect blend with the German’s experience and the Brazilian’s young talent.

Bortoleto has been hugely impressive in his rookie season, displaying strong pace in qualifying and scoring decent points. Hulkenberg grabbed a podium at Silverstone, marking the first of his career after a 239-race streak of one eluding him.

The German manufacturer have everything they need to have a strong impact in F1. Mattia Binotto backs Hulkenberg to win with Audi, but whether he can do that in their debut season in 2026 is another question.