Alpine and Honda found in F1 cost cap procedural breach

Alpine and Honda found in F1 cost cap procedural breach

The FIA has announced that both Alpine and Honda committed F1 cost cap procedural breaches during the 2023 season.

This revelation comes as part of the governing body’s ongoing efforts to enforce financial compliance within the sport, which has been under strict budgetary constraints since the introduction of the cost cap in 2021.

While no team exceeded the financial limits set for the season, the F1 cost cap procedural breaches highlight the complexities and challenges faced by engine manufacturers in adapting to the new financial regulations.

In its latest report, the FIA confirmed that all ten F1 teams complied with the cost cap for the second consecutive year. However, it identified procedural breaches for Alpine and Honda during the 2023 season.

The nature of these breaches has not been explicitly detailed by the FIA, but they could involve issues such as late submissions of required documents, inaccuracies in financial reporting, or failure to comply with specific requests from the Cost Cap Administration (CCA).

A statement from the FIA read: “The CCA (Cost Cap Administration) confirms that although Alpine Racing SAS and HRC 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).”

F1 cost cap procedural breaches, while serious, do not carry the same weight as financial breaches. In the past, teams such as Aston Martin and Williams have faced fines for similar infractions.

Aston Martin was fined $450,000 in 2022 for inaccuracies in their cost calculations, while Williams incurred a $25,000 fine for failing to submit their financial accounts on time.

The FIA has indicated that it intends to propose an Accepted Breach Agreement (ABA) for Alpine and Honda, which would likely result in a financial penalty rather than a sporting one.

The ABA process allows teams to acknowledge their procedural breaches and settle the matter without further investigation or penalties that could impact their competitive standing.

This is the first year that the power unit manufacturers who have applied to compete in 2026 have had to comply with a cost cap and as the sport moves towards the new engine regulations, the importance of compliance with financial regulations will only increase.

The FIA’s findings will likely prompt a reevaluation of internal processes within Alpine and Honda to ensure that they align with the regulatory framework.

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