Mercedes Plans to Reduce Customer Teams in Next F1 Era

Toto Wolff has announced that Mercedes intends to reduce the number of Formula 1 teams it supplies with power units starting from the 2026 season. The move signals a strategic shift to prioritize the works team's title bid, moving away from the current model of supplying four teams on the grid, including McLaren and Williams.

Why it matters:

This decision is a direct response to the frustration of seeing customer teams, particularly McLaren, win championships with Mercedes power units while the factory team falls short. It underscores a fundamental conflict of interest in being both a supplier and a competitor, and signals a reset for Mercedes' approach, aiming to funnel all resources and focus into winning with their own team. The move will also have a significant impact on the grid's competitive balance and the future of its customer partnerships.

The details:

• Current Supply: Mercedes High-Performance Powertrains (HPP) currently supplies four teams: the works Mercedes team, McLaren, Williams, and will add Alpine in 2026.
• Future Reduction: Wolff stated the goal is to reduce this number to "between two and three" teams total for the next regulation cycle, which begins in 2026.
• Logistical Burden: Supplying four teams creates immense logistical complexity, with Wolff noting the need to ship "16 engines... to Melbourne" for all parties. This requires longer lead times and production cycles.
• Strategic Drawback: A larger customer base forces HPP to lock in power unit designs earlier to meet production demands, potentially limiting aggressive, late-stage development that could be crucial for a performance advantage.
• Primary Mission: Both Wolff and HPP Managing Director Hywel Thomas emphasized that the division's core purpose is singular: to win World Championships with the Mercedes works team. Wolff referred to McLaren's success as having an "enemy in the house," highlighting that customer victories ultimately expose the chassis team's shortcomings.

What's next:

The immediate question becomes which of its current partners—McLaren, Williams, or Alpine—may lose their supply deal after the initial 2026 season. This decision puts immense pressure on the Brackley-based chassis department to deliver a car capable of winning championships with the proven Mercedes power unit. For the 2026-2030 era, Mercedes is signaling a more focused, streamlined, and potentially more aggressive assault on the title.