HONDA The Power of Dreams

All teams competing in Formula 1 must be constructors. Under the regulations, a constructor is defined as an organization that designs and manufactures its own car (chassis) using proprietary technology.

As a result, an F1 team’s core responsibilities include vehicle development and manufacturing, as well as race operations at the circuit. In addition, teams maintain departments dedicated to marketing and promotion, merchandising and sponsor relations, logistics and circuit infrastructure setup, and legal affairs related to contracts and compliance. In both personnel and facilities, an F1 team is therefore a very large organization.

In particular, vehicle development and manufacturing require highly skilled personnel and state-of-the-art facilities. The quality of these resources has a direct impact on on-track performance and race results.

For many years, the number of teams competing in Formula 1 has remained at around ten, and since 2017 participation has been limited to 10 teams. This is because entry into Formula 1 requires approval from the Fédération Internationale de l’Automobile (FIA), Formula One Management (FOM) (formerly FOCA), and all existing teams. The barriers to entry are extremely high, requiring not only technical capability but also political influence and substantial financial resources. In 2026, Cadillac F1 Team will join Formula 1 as the 11th team. This represents a rare case in which a new entrant has successfully overcome these hurdles over an extended period of time. Most current teams, meanwhile, trace their origins to the acquisition and rebranding of previously existing teams.

One example is Mercedes-AMG Petronas Formula One Team. Mercedes achieved prominence in the early days of Formula 1 as the “Silver Arrows,” but later suspended its factory racing activities for many years. The current Mercedes team traces its roots to the historic constructor Tyrrell Racing, which was acquired by British American Racing (BAR) in 1998. BAR was subsequently acquired by Honda, and following Honda’s withdrawal from Formula 1, the team’s assets were transferred to Brawn GP. After winning the championship in 2009, Brawn GP was acquired by Mercedes, forming the basis of the current team.

The primary sources of income for Formula 1 teams are revenue distributions from FOM and sponsorship income. FOM distributions vary depending on a team’s finishing position in the previous season’s Constructors’ Championship, making race results critically important from a financial perspective. Other aspects of revenue distribution and commercial arrangements are governed by the Concorde Agreement. However, the detailed contents of this agreement are not publicly disclosed.