Honda and Alpine have been found to be in procedural breach of Formula 1’s power unit cost cap by the FIA, although it has been made clear neither overspent.
Motor racing’s governing body announced on Wednesday morning that it had completed its administration process in evaluating the cost cap of all the current teams and engine manufacturers up until the end of 31 December, 2023.
It stated that all the current 10 teams in F1 had fully complied with the spending restrictions over the course of last year.
However, a green light was not given to all the engine manufacturers, with a statement explaining that while all four manufacturers had complied with the spending limits, Alpine and Honda had been identified for what it deemed “procedural breaches.”
A statement from the FIA added: “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).”
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.
The power unit cost cap regulations for 2023 set down a spending limit of $140.4 million for the 23-race campaign – with the rules allowing for a calculation of spending for 24 events because the Emilia Romagna Grand Prix was cancelled at the last minute.
But beyond the pure spending limit, there are other obligations that manufacturers have to fulfil, and the procedural breaches could be related to the timing of supplying the necessary paperwork to the FIA.
The financial regulations layout different elements that can be classified as procedural breaches. These include making a late submission, failing to co-operate with written requests for information or documents, and submitting inaccurate documentation.
The reference for the manufacturers being asked to accept an Accepted Breach Agreement refers to a procedure in the rules whereby the guilty parties accept a sanction laid down by the FIA.
Penalties for procedural breaches are purely financial, unless the FIA determines that there are mitigating factors that justify no further action, or there are sufficient aggravating factors that determine a sporting penalty should be given instead.
When the team cost cap first came into force for 2022, Aston Martin and Williams both fell foul of procedural breaches in their submissions for the 2021 season. The two outfits were eventually fined after accepting an ABA with the FIA.
