P1racenews AI automatic summary:
FIA Single-Seater Director Nikolas Tombazis has explained why Audi is the sole Formula 1 team outside the UK to receive a cost-cap exemption in 2026.
Next year, the cost cap in Formula 1 will increase from $135 million to $215 million per global inflation and due to new technical regulations. Audi, set to take over Sauber in 2026, will have a higher cost cap because of the expensive living costs in Switzerland where the team is based. This decision has caused backlash from the other teams, especially since Ferrari, also based outside the UK, didn’t receive a similar exemption. The FIA defended the decision, citing the high labor costs in Switzerland compared to other F1 team bases. The adjustments in the financial regulations for 2026 aim to address fairness and ensure teams like Audi can operate competitively without relocating to cheaper countries. Additionally, Audi is getting a financial boost by selling a stake to the Qatar Investment Authority to support its Formula 1 endeavors.
