During the 2023 F1 season, the FIA implemented a cost cap for power unit manufacturers for the first time ever. The cost cap for F1 teams was introduced back in 2021, but now, the FIA has implemented the same for Power Unit Manufacturers as well. After evaluating the numbers from last year, the FIA has found that Honda and Alpine were both in violation of the cost cap.
The cost cap for power units was implemented by the FIA to level the playing field between manufacturers. Over the years, we have seen some manufacturers build powerful engines while others are left in the dust. This cost cap will bring a bit more balance to the field. This will also result in the manufacturers being more innovative in unlocking power from the power units. But Honda and Alpine have crossed a line here.
FIA fines Honda and Alpine for cost-cap breach
The FIA has fined Honda $600,000, while Alpine received a fine of $400,000. The FIA also released the following statement:
“The Cost Cap Administration recognised that both PUMs [power unit manufacturers] 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,”
“There is no accusation or evidence that either Alpine or HRC has sought or obtained any undue advantage as a result of the breach.”
#F1 – Accepted Breach Agreement between Alpine Racing SAS and the FIA and between Honda Racing Corporation and the FIA for breach of the FIA Formula 1 Power Unit Financial Regulationshttps://t.co/KYH3fv0IPl
— FIA (@fia) October 29, 2024
So both Alpine and Honda have cooperated with the FIA in their investigation into the breaches. The breach was caused by Honda because the team’s cost calculations included incorrectly excluded or adjusted costs. Alpine on the other hand had “omitted relevant information”.
While this does seem like a stupid mistake to make, it is understandable considering that this is the first year of the cost cap. There are still some doubts about what to include and what not to include.
But both Honda and Alpine have been cooperative, hence, the FIA feels that the fines are penalty enough for the teams.
Did the excess amount spent on the power units give an advantage to the teams?
Honda, supplying power units to Red Bull, and Alpine both did breach the budget cap for the power unit. But no, the breach did not give an advantage to the teams in terms of performance.
Both breaches were considered to be minor and the manufacturers have apologized. If the breaches had given either of the manufacturers an advantage, the FIA would have given a bigger penalty. But just the fines for now.
🚨 BREAKING: Renault has confirmed it will not build power units for the new regulations Formula 1 is introducing in 2026.
Alpine is therefore in need of an engine supplier for the 2026 season. The team is believed to be in discussions with Mercedes to obtain power units as a… pic.twitter.com/49AHXP27nx
— Fastest Pitstop (@FastestPitStop) September 30, 2024
Honda will need to make a good note of what to include and what not to include as they look to be staying in F1 for a long time. From the 2026 season, Honda will supply power units to Aston Martin.
Alpine on the other hand might not have to worry about power unit budget caps for long. After the 2025 season, Renault is abandoning their F1 power unit project. This has pushed Alpine to depend on their power unit requirements from an outside party. From what it seems, it looks as though Mercedes will be powering the Alpine from 2026. But it’s still yet to be confirmed.
