The 1998 season saw a significant shift in the competitive landscape, with McLaren emerging as the dominant constructor. The withdrawal of Renault as a direct engine supplier impacted teams like Williams, who were unable to defend their 1997 championships. Williams suffered their first winless season since 1988.
Several team changes occurred before the season. Renault’s withdrawal meant that Williams and Benetton had to find alternative engine suppliers. Williams opted for Mecachrome engines, which were rebadged Renaults, while Benetton used Playlife-branded engines, also based on Renault designs. Arrows purchased Brian Hart's preparation company to build their own engines, starting with the 1998 season. Prost and Jordan swapped engine suppliers, with Prost using Peugeot and Jordan switching to Mugen-Honda. Minardi moved from Hart to Ford engines.
Driver changes were also prevalent. Gerhard Berger retired from Formula One at the end of 1997, creating a vacancy at Benetton. Benetton replaced Berger and Jean Alesi (who joined Sauber) with Giancarlo Fisichella and Alexander Wurz. Jordan signed 1996 World Champion Damon Hill alongside Ralf Schumacher, and Arrows secured the services of Mika Salo. Jos Verstappen, after leaving Tyrrell, returned to F1 midway through the season with Stewart.
Mid-season, Jan Magnussen was dropped by Stewart after the Canadian Grand Prix due to poor performances, including a collision with teammate Rubens Barrichello at Imola. He was replaced by Jos Verstappen.
The Portuguese Grand Prix, originally scheduled for 11 October, was cancelled due to the government’s refusal to fund safety upgrades. The European Grand Prix, held at Jerez in 1997, was absent from the 1998 calendar.
Technical regulation changes for 1998 included the reintroduction of grooved tyres, replacing slicks for the first time since 1970, and a reduction in car track width from 2,000 mm to 1,800 mm. These changes were intended to reduce cornering speeds and improve overtaking opportunities. Regulations regarding brakes were also tightened to limit braking performance. The cameras mounted on engine covers were changed from an I-shape to a T-shape.
Before the Spanish Grand Prix, “X wings” – aerodynamic appendages first seen on the Tyrrell 025 in 1997 – were banned. Teams that had used them included Ferrari, Jordan, Prost, Sauber, and Tyrrell.
The season began with a 1–2 finish for McLaren at the Australian Grand Prix, with Mika Häkkinen winning after a pre-race agreement with teammate David Coulthard. McLaren continued their dominance with another 1–2 in Brazil, but a protest regarding their braking system was lodged. Michael Schumacher won the Argentinian Grand Prix, while Coulthard won at Imola. Häkkinen secured wins in Spain and Monaco, establishing a significant lead in the championship.
Schumacher won three consecutive races, closing the gap to Häkkinen, but Häkkinen responded with wins in Austria and Germany. Schumacher won again in Hungary, reducing the championship gap to seven points.
The Belgian Grand Prix was marred by a major accident at the start, with multiple cars involved in a collision. Damon Hill won the restarted race for Jordan, their first-ever victory. Schumacher won in Italy, levelling the points standings with Häkkinen. Häkkinen won at the Nürburgring and ultimately secured the championship with a win at the Japanese Grand Prix, where Schumacher stalled on the grid and later retired.
The World Drivers' Championship standings saw Mika Häkkinen crowned champion. The World Constructors' Championship was won by McLaren. Williams experienced a disappointing season, with only two podium finishes for Jacques Villeneuve and one for Heinz-Harald Frentzen. They finished third in the Constructors' Championship, ahead of Jordan and Benetton.
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