Audi’s ambitious foray into Formula 1, in partnership with Sauber, is gaining momentum ahead of the sport’s new engine era in 2026. The Swiss-based Sauber, located in Hinwil near Zurich, will become Audi’s works team, but the financial dynamics of operating in Switzerland have sparked significant debate. In a sport where every dollar counts under strict cost caps, Audi faced a potential disadvantage—until now.
Starting in 2026, all F1 teams will operate under a cost cap of $215 million, a figure that will now include additional items in the financial regulations. However, for teams like Sauber, headquartered in high-cost countries like Switzerland, the cap presented a unique challenge. According to data from the Organisation for Economic Co-operation and Development (OECD), Switzerland’s average wage in 2022 stood at $79,926—significantly higher than the $54,891 in the UK, where seven of the ten teams are based. Audi, meanwhile, is developing its power unit in Germany, where wages are somewhat lower at $62,570.
These wage disparities posed a major issue for Sauber, potentially reducing their workforce by 30% to 40% compared to their English-based rivals, as noted by Nikolas Tombazis, head of single-seaters at the FIA. Tombazis highlighted the imbalance, explaining that the high cost of living and salaries in countries like Switzerland could lead to fewer people working on Sauber’s car, a disadvantage that the governing body deemed “fundamentally unfair.”
The FIA has responded by adjusting the financial regulations for 2026. Teams based in higher-wage countries will see cost cap considerations tailored to account for local economic conditions, based on OECD data. This move ensures that Sauber—and potentially other teams in similar situations—can compete on a more level playing field without needing to relocate from Switzerland, a concern raised by Tombazis.
“We don’t think that’s the right way for a world championship to operate,” Tombazis said, referring to the idea that teams like Sauber could be forced to move to lower-cost regions. The new regulations, he emphasized, are backed by clear evidence from salary data across teams, making the adjustment both necessary and fair.
Sauber’s team principal, Mattia Binotto, welcomed the change but was quick to note that the move doesn’t provide an advantage, rather it eliminates a major handicap. “It’s removed what could have been a disadvantage,” Binotto explained, adding that the new rules are a matter of fairness and are “certainly welcome.”
As Audi gears up for its F1 debut, the decision marks a significant win, ensuring they won’t be hamstrung by Switzerland’s higher labor costs. While Ferrari, Red Bull-owned VCARB, and other teams headquartered outside the UK will also benefit from the adjustment, it’s clear that the rules have been crafted with a sense of equity in mind.
For F1’s governing body, this move represents a step towards ensuring that the sport’s global reach isn’t compromised by geographical financial disparities, paving the way for a more inclusive and competitive grid in 2026.
