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Red Bull could face another ‘multi-million’ pound ‘disadvantage’ if F1 rivals exploit ADUO loophole

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Red Bull may be looking down the barrel of another ‘multi-million’ pound disadvantage in Formula 1 if their ADUO-granted rivals choose to exploit a loophole in the FIA’s new initiative.

The Milton Keynes-based outfit continues to challenge the FIA’s ruling that they have developed the best engine for the 2026 F1 campaign, with every other power unit manufacturer, including championship leaders Mercedes, receiving free upgrades.

What are your thoughts on Mercedes being granted an engine upgrade through ADUO despite their 2026 dominance?

Mercedes driver Kimi Antonelli during the 2026 Monaco Grad Prix
Photo by Rudy Carezzevoli/Getty Images

Both Ferrari and Mercedes have been accused of turning down their engines in order to ensure that they will be considered for the FIA’s first roll-out of ADUO, with the Silver Arrows being given one free upgrade, and the iconic Italian racing team being handed two.

Toto Wolff initially theorised that Red Bull had the strongest engine during pre-season, but Mercedes’ dominance in the opening rounds of 2026 meant that fingers were instead pointed at the Brackley-based outfit.

Red Bull’s qualm with ADUO is that the assessment only accounts for the Internal Combustion Engine (ICE), not the full package. In the current regulations, the ICE only makes up 50% of the overall power unit.

However, the free upgrades reportedly don’t have to be used solely on the ICE, which could have even more of a negative effect on Red Bull’s place in the F1 pecking order if teams opt to use this loophole.

ADUO-granted F1 teams can continue to receive aid by upgrading electrical power instead of the ICE

According to a report from Sport.de, every engine manufacturer that has been granted ADUO could ‘theoretically’ use their free upgrade on their power unit’s electrical components instead of the combustion engine.

Isack Hadjar blames Red Bull’s chassis for their poor start to 2026 – Are you surprised that their engine has not been the biggest issue?

Red Bull driver Isack Hadjar walks to the grid before the 2026 F1 Japanese Grand Prix
Photo by Kym Illman/Getty Images

That would mean that when the FIA come to assessing the competitiveness of the grid’s engines again after the Hungarian GP, the measurement would yield the same result as before, ensuring that the current beneficiaries will receive further upgrades down the line.

Each upgrade is understood to be worth around £2.6m ($3.5m) each, with the attraction of ADUO being that manufacturers will have the cost completely omitted from their cost-capped budget.

In Red Bull’s case, however, any further upgrades will have to be deducted from their overall budget, thus meaning Milton Keynes could be facing even a ‘multi-million dollar disadvantage’ over their rivals for the remainder of the current campaign.

If successful, it would be the second loophole that Mercedes has exploited during the introduction of the current ruleset. During pre-season, the grid was up in arms over the team’s Brixworth-based engineers utilising a compression ratio trick to gain an early advantage.

The loophole was officially closed ahead of the Monaco Grand Prix, with the FIA amending the wording of its technical regulations at the start of June. The sport’s governing body had initially planned to put a stop to it at the beginning of August.