Audi’s highly anticipated entry into Formula 1 in 2026 will be bolstered by a significant cost cap boost, according to reports. As the German marque prepares to take over the Hinwil-based Sauber outfit, it faces a steep uphill climb. One of the key challenges stems from the fact that salaries in Switzerland are reportedly 35-45% higher than in other F1 strongholds like the UK or Italy. To level the playing field, Audi will receive a special adjustment to offset its higher staffing costs.
BBC Sport has learned that the 2026 cost cap will allow for modifications to account for these inflated wages, giving Audi some breathing room in its budget. This comes as a critical relief for the team, which has yet to score a point in the 2024 season, with Sauber’s average salary sitting at £125,000—allegedly £35,000 more than the top teams.
Mattia Binotto, the Chief Operating and Chief Technical Officer for the Sauber/Audi F1 project, highlighted the importance of this adjustment, explaining that the team would have been at a $20 million disadvantage without it. Binotto stated that Audi simply wouldn’t have been competitive without this crucial cost cap modification.
Starting in 2026, the cost cap itself will also be increased from $135 million to $215 million per year. This accounts for inflation and the inclusion of more items under the cap, further helping teams like Audi manage their budgets more effectively.
Despite the financial relief, Audi’s Formula 1 journey has not been smooth. The departure of key senior figures who initially pushed Audi into F1, coupled with reports of struggles in its engine development programme, has raised concerns about the project’s stability. Joe Saward even reported that Audi is experiencing second thoughts about the venture. However, CEO Gernot Dollner remains publicly committed to a long-term F1 project, describing it as “a long-term commitment to Formula 1.”
While the team has secured Nico Hülkenberg for 2025, they have yet to finalize a second driver, adding to the uncertainty. Nevertheless, Binotto remains optimistic but realistic, suggesting that Audi won’t be a regular contender at the sharp end of the grid until 2030.
Audi’s decision to enter Formula 1 comes at a pivotal time for the sport, and the additional cost cap flexibility may provide just the lifeline they need to get their project on track. However, with significant hurdles still ahead, the pressure is on for the German manufacturer to ensure its ambitious F1 journey isn’t derailed before it even begins.
