One of the biggest challenges for teams this year will be deciding when and how many resources to allocate toward the development of their 2026 car. With an entirely new set of regulations coming into effect, teams must carefully balance their focus between their current performance and long-term competitiveness. Many teams will have to work on both their 2025 and 2026 cars simultaneously, making any mistakes in this year’s design or upgrades highly costly.

Mercedes team principal Toto Wolff has already warned that his team “cannot afford” to start the season poorly, especially with the upcoming power unit regulations set to reshape the competitive landscape.

Mercedes has struggled with poor starts in the last three seasons but managed to recover and win four races last year. With the season set to begin this weekend in Australia, Wolff understands that a slow start is not an option, as significant upgrades will be challenging with the new regulations on the horizon.

“The first six months [of 2024] cost us the most points because we didn’t get the car going,” he told OE24.

“In the second half of the year, we won four races anyway and were among the front runners. Our aim is still to compete for world championships. But it’s incredibly close between the four teams that can win this year. You can be first or eighth.”

This intense competition makes Mercedes’ balancing act even more difficult, as they must develop the W16 while keeping an eye on the drastic regulatory changes coming in 2026.

For a team like Mercedes, the challenge of timing the transition to next year’s development is even greater due to its role as a power unit supplier. Wolff faces the difficult task of deciding when to shift focus, knowing that an ill-timed transition could jeopardise their competitiveness in both the short and long term.

“The difficulty will be to develop the current car further and, on the other hand, to look ahead to next year with the huge change. You have to be very flexible."

Wolff is unwilling to sacrifice this season, fully aware of the expectations surrounding the team. He knows that Mercedes must continue to fight for victories and championships, even as they prepare for the future.

“That requires a lot of tact,” he added.

“We are Mercedes. Our aim is always to drive for victories and titles. Given our reputation, we cannot afford to turn things around in the spring.”