As the 2026 cost cap is set to rise to US$215 million, teams in Formula One (F1) are facing increased complexity in balancing performance within tight financial limits due to new technical regulations and formerly excluded elements. To tackle this issue, the Mercedes-AMG PETRONAS F1 Team has joined forces with SAP.

Upon integrating SAP Cloud ERP Private solutions as its digital foundation, the Team will have access to instant financial information, advanced predictive analytics, and efficient operations throughout the entire organization. Additionally, they can leverage SAP Business AI to anticipate budget requirements, enhance supply chain efficiency, and accurately monitor inventory levels – all crucial capabilities within the changing cost cap framework.

Using SAP Cloud ERP Private, the team is able to effectively manage their stock inventory, which includes over 14,500 individual components for each race car. This not only streamlines the FIA reporting process but also guarantees precise and up-to-date valuation of parts, a crucial requirement under the latest financial regulations. Furthermore, the cloud-based system provides reliable availability, which is especially valuable during weekends when operations are at their peak.

According to Mercedes-AMG PETRONAS F1 Team’s Director of IT, Michael Taylor, SAP’s technology enables them to maintain a competitive edge and adhere to budget restrictions in the sport. Working with SAP means not only achieving faster speeds on the track, but also implementing strategic strategies.

The 2026 cost cap regulations bring forth a higher level of financial discipline, with their expanded expense categories and more stringent reporting demands. In this regard, the utilization of SAP solutions will be beneficial to the Mercedes-AMG PETRONAS F1 Team.

Efficiently manage expenses within R&D, manufacturing, and race operations.

Streamline your compliance reporting process with the automatic inclusion of audit trails.

Analyze potential financial outcomes to aid in strategic decision-making.

Utilizing SAP Business AI, the team is enhancing sustainability tracking and operational decision-making, which are essential objectives in accordance with the developing 2026 FIA financial regulations. Intelligent data models aid in reducing carbon footprint and increasing efficiency, while predictive capabilities facilitate inventory and supply chain optimization. At the same time, SAP Business Technology Platform and SAP Build solutions are being employed to create customized applications that streamline workflows and promote collaboration among departments.

According to Sebastian Steinhaeuser, Member of the Executive Board and Chief Operating Officer at SAP SE, the Mercedes-AMG PETRONAS F1 Team is leading the charge in digital transformation and AI advancements within motorsport. Together, they are demonstrating that operational excellence and innovation can coexist, even at speeds of 300 km per hour.