Last month, the FIA revealed that Alpine and Honda were in procedural violation, although they had not surpassed the $140.4 million spending cap. The cost cap, intended to regulate team expenditures and foster a more equitable competitive environment, has been a central concern for F1 governance in recent years. In 2023, all 10 Formula One teams complied with the cost cap for the second year in a row, although procedural violations were identified with engine manufacturers Alpine and Honda.
On Tuesday, the FIA announced that Honda and Renault-owned Alpine have been fined a total of $1 million for procedural violations related to the 2023 cost cap for engine manufacturers. Honda, currently partnered with Red Bull but set to join Aston Martin in 2026, was fined $600,000, while Alpine received a $400,000 penalty.
Honda failed to submit accurate reporting documentation, which included incorrect excluded and adjusted costs associated with the maintenance of engine dynamometers and inventories.
Alpine, on the other hand, “delayed the cost-cap administration’s regulatory function and provided inaccurate reports that lacked essential information.”
The FIA stated that the French company, owned by Renault, acknowledged that its initial assessment report “had significant deficiencies,” noting that “several required procedures were not conducted at all, while others were only partially completed.”
BREAKING: Formula 1 power unit manufacturers Honda and Alpine (Renault) have been fined by the FIA over breaching the #F1 engine cost cap rules.
Full story ⬇️https://t.co/58jvpeI5PB
— Motorsport.com (@Motorsport) October 29, 2024
Both companies have entered into accepted breach agreements with the FIA regarding their penalties. Last year marked the inaugural implementation of the engine cost cap, and the FIA stated that both Honda and Alpine “acted cooperatively and in good faith during the review process, providing additional information and evidence promptly when requested.”
Adhering to the power-unit financial regulations is a prerequisite for participating in F1 as an engine supplier starting in 2026; however, the offenses in question pertain to the inaugural year of the cap’s implementation in 2023.
Last month, Renault announced that it would cease F1 engine production after the next season due to financial constraints, with the Alpine team anticipated to compete with Mercedes engines starting in 2026, although this deal has not yet been finalized.
Red Bull’s history of overspending in F1
The F1 budget cap was introduced in the 2021 season, with Red Bull Racing becoming the first team found guilty of overspending during the initial trial in 2021. The Milton Keynes-based team received a $7 million fine, while Aston Martin, which was also found guilty of minor breaches, was fined $450,000.
In 2022, they were again held guilty of minor overspending but despite the fines imposed, the overspending did not significantly impact on-track performance. Red Bull secured two consecutive Constructors’ titles and three Drivers’ Championships, rendering the financial penalties largely ineffective.
This season, another $1 million fine has been slashed on the Milton Keans outfit and it remains to be seen whether it helps to curb the growing concern of overspending that has haunted F1 for decades.
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Mohd Faisal Hakak is a sports author from Kashmir. He likes to keep tabs on the sporting world with a keen interest in football, motorsports, NBA, and other marquee sports. He is a science graduate from Islamia College Srinagar.
