F1 Engine Manufacturers Involved In Procedural Breach Of PU Manufacturer Cost Cap

Saajan Jogia | Sep 11, 2024

Nov 18, 2023; Las Vegas, Nevada, USA; BWT Alpine F1 driver Pierre Gasly of France (10) drives during the Formula 1 Heineken Silver Las Vegas Grand Prix at the Las Vegas Strip Circuit. Mandatory Credit: Lucas Peltier-Imagn Images / Lucas Peltier-Imagn Images

The FIA has identified Alpine and Honda as having committed procedural breaches of Formula 1's power unit cost cap regulations, though it is clear that neither team exceeded their spending limits. The financial regulations define several types of procedural breaches, such as non-compliance with requests for information or documents, late submissions, and the provision of inaccurate documentation.

The governing body confirmed that all four engine manufacturers in Formula 1, namely Ferrari, Alpine, Mercedes, and Honda, complied with the cap on spending after it concluded its review of the cost cap compliance for all teams and engine manufacturers until December 31, 2023. However, the Wednesday announcement revealed that the Japanese manufacturer, which supplies engines to Red Bull and its junior team VCARB (RB), alongside Alpine made "procedural breaches."

In addition to the spending limit, manufacturers have other obligations to fulfill, and the procedural breaches could be related to the timing of supplying the necessary paperwork to the FIA, and fulfilling other formalities that were mentioned earlier.

The penalties that the engine suppliers have to face are financial in nature, unless the FIA finds something serious that warrants a sporting punishment, or in case it finds the nature of the breach to be such that demands no further action from the manufacturer.

For the first time, power unit manufacturers competing in 2026 must adhere to a cost cap. The 2023 regulations set a spending limit of $140.4 million for the season, which accounts for 24 events, though the last-minute cancellation of the Emilia Romagna Grand Prix brought the total races down to 23.

Revealing the breach, the FIA said in a statement:

“The CCA (Cost Cap Administration) confirms that although Alpine Racing SAS and HRC (Honda Racing Corporation) have both been found to be in procedural breach, neither have exceeded the Cost Cap level.

“Both Alpine Racing SAS and HRC have acted at all times in good faith and are currently cooperating with the CCA to finalise the matter.

“Considering the nature of the breach, the complexities of the new Financial Regulations for PU Manufacturers and the challenges associated with their first year of implementation, it is the CCA’s intention to propose to these two PU Manufacturers to settle their respective breaches by means of an Accepted Breach Agreement (ABA).”

The concept of an Accepted Breach Agreement requires manufacturers to acknowledge and accept penalties imposed by the FIA for rule violations. The FIA, however, clarified that all 10 current teams in Formula 1 had fully complied with the spending restrictions over last year.