Earlier quoted context omitted.
It’s also the balance that the FIA has never managed to maintain to anybody’s satisfaction. A lot of the issues with F1 stem from the fact that it’s actually two seperate competitions. If you let constructors build the fastest car that they safely can, then two bad things happen. Firstly, the fastest car will win. Secondly, the teams with less money can’t compete. The F1 brand is about having the most technologically…
A budget cap is one solution to keep design regulations to a minimum and ensure that smaller teams can compete. F1 introduced a $145 million budget cap for the 2021 season, going down to $135 million for 2023-25 seasons. Right now the three biggest teams (MB, Ferrari, Red Bull) spend somewhere around half a billion or so per season.
Somebody will optimize for the engine, somebody for the aerodynamics, somebody for the suspensions, somebody for the tires (buy them from whoever they want) etc. I guess very few will spend much on the driver.
At the beginning they'll be slower than the current cars (which are only marginally faster than the v10s of 2004) but year after year they'll improve new areas of the design and get fast again. I expect a lot of technical drama and very different solutions. It's going to be back to the 70x and 80s with today's technology and processes.