Dubai – Asdaf News:
SAP SE (NYSE: SAP) has announced that the Mercedes-AMG PETRONAS F1Team is leveraging SAP’s intelligent enterprise solutions to drive operational excellence, innovation, and regulatory compliance as the sport prepares for the new 2026 FIA Financial Regulations.
With the 2026 cost cap set to increase to $215 million to accommodate new technical regulations and previously exempted items, Formula One teams face growing complexity in managing performance within strict financial boundaries. Mercedes-AMG PETRONAS F1 Team has partnered with SAP to meet this challenge head-on.
Once the Team adopts SAP Cloud ERP Private as its digital core, the team will be enabled with real-time financial insights, predictive analytics, and streamlined operations across the organization. The team will also be able to utilize SAP Business AI to forecast budget needs, optimize supply chains, and manage inventory with precision –critical capabilities under the evolving cost cap framework.
A key use case is the management of the team’s stock inventory, where SAP Cloud ERP Private serves as the foundation for tracking and valuing over 14,500 individual components in each race car. This system reduces manual effort in reporting to the FIA and ensures accurate, real-time valuation of parts – an essential requirement under the new financial regulations. Additionally, the cloud-based architecture ensures high availability, especially important during race weekends when operations are most critical.
“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 at the Mercedes-AMG PETRONAS F1 Team. “With SAP, we’re not just racing faster – we’re racing smarter.”
The 2026 cost cap regulations, which include broader expense categories and stricter reporting requirements, demand a new level of financial discipline. SAP’s solutions will help Mercedes-AMG PETRONAS F1 Team:
- Track and allocate costs across research & development, manufacturing, and race operations
- Automate compliance reporting with built-in audit trails
- Model financial scenarios to support strategic decision-making
The team is harnessing SAP Business AI to strengthen sustainability tracking and operational decision-making – key priorities under the evolving 2026 FIA Financial Regulations. Intelligent data models are being used to reduce carbon footprint and improve efficiency, while predictive capabilities support inventory and supply chain optimization. In parallel, the team is using SAP Business Technology Platform and SAP Build to develop custom applications that digitize workflows and enhance 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 of SAP SE. “Together, we’re proving that operational excellence and innovation can go hand in hand –even at 300 km/h.”
