SAP SE announced that the Mercedes-AMG PETRONAS Formula One Team will use SAP’s intelligent enterprise solutions to improve operations, innovation, and regulatory compliance as Formula One prepares for new financial regulations in 2026.
With the cost cap increasing to $215 million in 2026 due to changes in technical rules and expense categories, F1 teams must manage greater complexity under stricter financial boundaries. The Mercedes-AMG PETRONAS F1 Team is partnering with SAP to address these requirements.
The team plans to implement SAP Cloud ERP Private solutions as its digital core. This system will provide real-time financial insights, predictive analytics, and more efficient operations throughout the organization. By leveraging SAP Business AI, the team aims to forecast budget needs, optimize supply chains, and manage inventory more precisely—capabilities that are increasingly important given the evolving cost cap framework.
One key application involves managing stock inventory. Using SAP Cloud ERP Private, the team can track and value over 14,500 individual components per race car. This automation reduces manual work for FIA reporting and ensures accurate real-time valuation of parts—an essential requirement under new financial rules. The cloud-based platform also supports high availability during critical race weekends.
“SAP’s technology gives us the agility and transparency we need to compete at the highest level while staying within the financial guardrails of the sport,” said Michael Taylor, Director of IT, Mercedes-AMG PETRONAS F1 Team. “With SAP, we’re not just racing faster—we’re racing smarter.”
The upcoming regulations expand covered expenses and introduce tighter reporting demands. With SAP’s tools, Mercedes-AMG PETRONAS F1 Team will be able to:
– Track and allocate costs across R&D, manufacturing, and race operations
– Automate compliance reporting with built-in audit trails
– Model financial scenarios for strategic decision-making
SAP Business AI will also help strengthen sustainability tracking and operational decisions by using intelligent data models to reduce carbon footprint and improve efficiency. Predictive capabilities support inventory management and supply chain optimization. Additionally, SAP Business Technology Platform and SAP Build solutions are being used by the team to develop custom applications that digitize workflows and improve collaboration across departments.
“The Mercedes-AMG PETRONAS F1 Team is setting the standard for digital transformation and AI-driven progress in motorsport,” said Sebastian Steinhaeuser, Member of the Executive Board and Chief Operating Officer at SAP SE. “Together, we’re proving that operational excellence and innovation can go hand in hand—even at 300 km per hour.”
More information about this partnership can be found on the SAP News Center.
