The FIA has imposed fines on engine manufacturers Honda and Alpine for violations of the rules surrounding the cost cap for Formula 1 engines. Although both parties have stayed within the budget limit for the power units, they have still received a penalty due to procedural errors in their financial reports.
Accepted Breach Agreement
Honda, which supplies engines to the Red Bull teams, and Alpine, responsible for the engines of its own team Alpine, have reached what is known as an Accepted Breach Agreement (ABA) with the FIA. This agreement means that they have agreed to a fine to settle the matter without further steps. Honda has received a fine of $600,000, while Alpine must pay $400,000. The differences are due to the nature of the violations: Honda has incorrectly excluded or adjusted costs in their report. Alpine has submitted certain documents late.
No Unfair Advantage
In its report, the FIA emphasized that both manufacturers cooperated throughout the entire process and acted in ‘good faith’. There was no unfair advantage or exploitation of the situation by Honda or Alpine. In addition to the fine, both parties must also pay the administrative costs of the investigation.
Cost Cap in Effect Since 2023
Since 2023, a cost cap has been in place for engine manufacturers in Formula 1. Although all teams fully complied with the financial rules for the 2023 season, Honda and Alpine encountered a procedural violation of the cost cap in September. For both manufacturers, this is a lesson in the strict requirements that the FIA sets for financial reporting.
Interestingly, Renault, the owner of Alpine, recently announced that it will stop developing Formula 1 engines in its French factory in 2026. Alpine is likely to switch to Lewis Hamilton‘s Mercedes engines in the future, marking a new direction and saying goodbye to its own engine program.
