Mercedes facing F1 upgrade dilemma as Wolff admits lack of money

Mercedes team principal Toto Wolff has admitted that the team lacks the budget to keep up with the pace of upgrades being introduced by Ferrari and McLaren. While Mercedes enjoyed a strong start to the 2026 Formula 1 season, their advantage has diminished as their rivals have introduced significant developments to their cars. Kimi Antonelli noted after the Dutch Grand Prix that Mercedes is no longer the fastest car on the grid, with McLaren's recent upgrade package aiding Lando Norris in securing back-to-back victories in Hungary and Zandvoort.

Wolff disclosed that Mercedes has deliberately distributed their development budget throughout the season, making it impossible to respond to every upgrade introduced by their rivals. He explained that they attempted to evenly split the budget based on their calculations of when they could implement the most impactful updates and optimize championship points. However, they are now facing a development race, as each of the top teams gains at least a couple of tenths of a second from every upgrade, which they lose.

When questioned about McLaren and Ferrari's ability to bring upgrades, Wolff acknowledged that it remains to be seen whether they will be able to deploy as much on the car towards the end of the season. He suggested that teams might adopt different strategies, spending more resources at the beginning and middle of the year compared to the later stages.

Despite Lando Norris's recent form, which includes a second consecutive win, Wolff is not overly concerned. He compared Norris's performance to Max Verstappen's comeback last year, emphasizing that Verstappen did not win the championship.