Mercedes plans to reduce number of customer F1 teams in future engine cycles

Mercedes team principal Toto Wolff has signaled a strategic shift, indicating the manufacturer plans to reduce the number of customer teams it supplies in future Formula 1 engine cycles. Currently powering its own works team plus McLaren, Williams, and Alpine—nearly half the grid—Mercedes believes the optimal number is between two and three teams total.

Why it matters:

As F1 prepares for the 2026 power unit regulations, engine supply strategies are becoming a critical competitive factor. Mercedes supplying fewer teams would concentrate its resources, potentially accelerating development for its works team and remaining partners. This move could reshape the technical alliances across the grid and intensify the competition for top-tier engine partnerships.

The details:

• Wolff confirmed internal discussions with Mercedes chairman Ola Källenius are already underway about scaling back customer supply in the next regulatory cycle.
• He pointed to Honda's upcoming exclusive works partnership with Aston Martin from 2026 as a telling comparison, noting the logistical and production benefits of supplying fewer units.
• The decision will hinge on the complexity of future regulations and the balance between what Mercedes can learn from supplying multiple teams versus the need to lock in designs earlier in the development cycle.
• Currently, Mercedes is responsible for producing 16 power units across its four teams, a significant operational challenge that grows with new regulations.

What's next:

For now, Mercedes' current customer teams—McLaren, Williams, and Alpine—are secure with contracts running through the end of 2030. This ensures stability through the 2026 regulation change. However, Wolff's comments serve as an early warning that the landscape will shift in the next engine cycle, potentially triggering a strategic scramble among teams to secure long-term competitive power unit deals. The decision on which teams retain Mercedes power post-2030 will be a major political and technical storyline in the coming years.