SPA-FRANCORCHAMPS, Belgium - Formula 1 fans, you can finally breathe. The engine saga that has dragged through boardrooms and technical working groups for what feels like an eternity is shifting into the fast lane. F1 CEO Stefano Domenicali told reporters at the Belgian Grand Prix that the marathon negotiations over the 2028 engine regulations are “heading in the right direction” - and for the first time, he’s backing that up with real numbers.
A draft framework for the next-generation power unit is reportedly 95% agreed. That’s not diplomatic fluff; it’s a near-done deal on the technical side. The remaining 5% isn’t about horsepower or hybrid wizardry - it’s about cold, hard cash. And with a target to finalise everything by October 2026, the clock is ticking louder than a Red Bull launch.
The goal? A more powerful, sustainable, and fiercely competitive power unit that keeps the current manufacturer lineup intact - and lures new giants to the grid. This isn’t evolution. This is a full revolution, and it’s coming faster than you think.
A 95% Agreed Blueprint: What’s on the Table?
Let’s cut through the technical jargon and get to what matters. The core of the next-gen rules is essentially locked in. Domenicali confirmed the removal of the complex MGU-H - a system that has given engineers headaches for years - a significant boost to electrical power, and the mandate for 100% sustainable fuels as the technical foundation.
This isn’t a minor tweak. It’s a complete philosophical shift to a V6 turbo hybrid targeting a monstrous 600kW total output, with 50% coming from electrical systems. That’s a rocketship with a conscience, and it’s exactly what the sport needs to stay relevant in a world obsessed with sustainability.
But here’s where it gets interesting. The final 5% of the agreement isn’t about engineering; it’s about the bottom line. The FIA’s latest technical working group note sets the cost cap at €95 million per manufacturer per season - a hefty jump from the current €85M to cover R&D for the new power units.
📊 €95M cost cap per manufacturer per season - Up from €85M currently, this covers R&D for the 2028 V6 turbo hybrid with 50% electrical output.
While Audi - which has already dyno-tested its 2026 power unit - and Honda have voiced support, the real sticking point is commercial leverage. The unresolved battle revolves around the engine manufacturer bonus pool. Currently set at $20M per year per manufacturer, Ferrari and Mercedes are pushing for a raise to $35M for those supplying three or more customer teams. Spoiler alert: Ferrari now has four customer teams. Coincidence? Absolutely not.
| Manufacturer | Customer Teams | Current Status |
|---|---|---|
| Ferrari | 4 (Ferrari, Haas, Sauber/Audi, Cadillac F1) | Pushing for $35M bonus |
| Mercedes | 3 (Merc, McLaren, Williams) | Pushing for $35M bonus |
| Red Bull Ford | 2 (Red Bull, RB) | Neutral on bonus amount |
| Renault/Alpine | 1 (Alpine) | Threatening exit post-2027 |
This financial wrinkle is slated for a final showdown at the F1 Commission meeting in London on September 15. Domenicali has called it the “most important commercial discussion” of the entire process.
The Manufacturer Chessboard: Threats and Commitments
Behind the scenes, the political maneuvering is as intense as any on-track battle - think Verstappen defending from Hamilton at Silverstone, but with more spreadsheets. Renault/Alpine has thrown a wrench into the works by officially threatening to exit F1 post-2027 unless the development freeze is lifted for the current engines.
That’s not an empty threat; it’s leverage. Domenicali acknowledged this is “on the table,” signalling a willingness to negotiate on flexibility to keep the French manufacturer in the paddock. Lose Alpine, and you lose a player that’s been part of F1’s DNA for decades - even if their recent on-track form hasn’t matched their ambition.
Conversely, the carrot of increased electrical power is attracting massive outside interest. With BMW and Hyundai both confirming “active exploratory talks” as of June, the 2028 grid could feature at least seven manufacturers. That’s the biggest lineup in modern F1 history - a sign that Domenicali’s vision is resonating beyond the sport’s traditional borders.
