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With new racing regulations on the horizon, Formula 1’s current third-placed team, Mercedes-AMG Petronas, has signed up with SAP for cloud ERP. (For background on ERP, read our guide to Enterprise Resource Planning.)
Last year, F1’s governing body the FIA (Fédération Internationale de l’Automobile), published new regulations that will govern the way teams operate from 1 January 2026, including increasing their spending cap for the year to $215 million. Companies that exceed the cap will face stiff penalties from the FIA.
According to Mercedes-AMG Petronas, the deal with SAP will allow the team to “face growing complexity in managing performance within strict financial boundaries”.
The team will move to SAP Cloud ERP Private to analyse and manage financial and operational data. The software will also be used to keep track of the 14,500 components that the Mercedes-AMG Petronas team uses during the racing season, as well as to keep tabs on the value of the components, to ensure the team is in line with the 2026 rules.
The SAP software will also provide insight into Mercedes-AMG Petronas’ costs across its R&D, manufacturing and racing operations.
According to Mercedes-AMG Petronas, the ERP will also allow it to automate its compliance reporting, as well as model financial scenarios to help with the team’s strategic decision-making, all in line with the incoming regulatory changes.
Alongside ERP, Mercedes-AMG Petronas has signed up for some of the company’s artificial intelligence products too: it will be using SAP Business AI to for modelling that can be used to feed into the teams’ sustainability decisions, or improve its operational efficiency through better inventory and supply chain management.
The F1 team has also deployed SAP Business Technology Platform and SAP Build to streamline workflows and improve collaboration across the business.
Mercedes-AMG Petronas began a multi-year deal with SAP last year, moving onto S/4 HANA as its “technology foundation”. It cited improving cost control and optimising its supply chain as reasons for the shift.
The SAP deal isn’t the team’s first foray into AI. In 2023, it signed a multiyear agreement with the Abu Dhabi-based tech firm G42. The partnership was set up to analyse race data that Mercedes-AMG Petronas could use to achieve “marginal gains” for the team to help it get ahead of competitors.
