Honda and Alpine Confirmed to Be in Breach of Engine Cost Cap

Alex Harrington | Oct 29, 2024

May 4, 2024; Miami Gardens, Florida, USA; Red Bull Racing driver Max Verstappen (1) during F1 qualifying for Miami Grand Prix at Miami International Autodrome. Mandatory Credit: Peter Casey-Imagn Images / Peter Casey-Imagn Images

Two prominent engine manufacturers, Honda and Alpine, have been penalized for breaching the FIA Engine Cost Cap. The infractions were due to procedural mistakes rather than excessive spending. Honda has been fined $600,000, while Alpine faces a $400,000 penalty.

The introduction of the engine manufacturer cost cap was intended to curb runaway budgets and promote competitive fairness. All 10 F1 teams therefore comply with financial limitations.

Honda, well-regarded for its contributions to motor racing, made headlines when it transitioned out of Formula 1 as an engine manufacturer in 2021. However, it continued to foster relationships within the sport by supplying power units, under the moniker Honda RBPT, to Red Bull and VCARB. Now, Honda is set to re-enter the arena as an engine supplier for Aston Martin in 2026.

Meanwhile, Alpine supports the sport with Renault-branded engines.

Despite these hurdles, both manufacturers have cooperated with the FIA through Accepted Breach Agreements. The infractions, characterized primarily by administrative mistakes in financial reporting, do not involve financial overspending beyond the designated threshold of $140.4 million for 2023.

Aston Martin and Williams had similar breaches reported in 2022, with fines of $450,000 and $25,000.

Statement from the FIA:

Alpine Racing SAS (“Alpine”) and Honda Racing Corporation (“HRC”) were found to be in Procedural Breach of the Power Unit Financial Regulations notwithstanding the fact that their Relevant Costs during the 2023 reporting period were under the Cost Cap. The Cost Cap Administration offered to both Power Unit Manufacturers (“PUMs”) an Accepted Breach Agreement (“ABA”) to resolve these matters. The offer was accepted by both PUMs. The Cost Cap Administration recognised that both PUMs have acted cooperatively and in good faith throughout the review process and have sought to provide additional information and evidence when requested in a timely manner, that this is the first year of the full application of the Power Unit Financial Regulations and that there is no accusation or evidence that either Alpine or HRC has sought or obtained any undue advantage as a result of the breach.  

Pursuant to Article 6.28 of the Power Unit Financial Regulations the Cost Cap Administration entered into the following ABAs:

• an ABA with HRC on 7 October 2024; and
• an ABA with Alpine on 11 October 2024