The FIA (Fédération Internationale de l'Automobile) has announced that engine manufacturers Honda and Alpine have both committed a “procedural breach” of Formula 1's cost-cap regulations for the 2023 season. Honda, which supplies engines to Red Bull, and Alpine, which provides engines to its own team, were both found not to have exceeded the spending limit.
What did FIA say?
The FIA did not specify the exact nature of the breaches but indicated that they were related to discrepancies in financial reporting. Both manufacturers are cooperating with the FIA's cost-cap administration and are proposed to enter an 'accepted breach agreement,' which involves acknowledging the rule violation and accepting a potential sanction.
A Honda spokesperson mentioned that the breach was a minor procedural error, with no intent to exceed the cost cap, and they would discuss details after the FIA discloses the agreement.
"We would like to discuss the details of the matter after the ABA is disclosed by the FIA. In any case, it was a simple procedural mistake and not at all intentional. Furthermore, even including this procedural error, we have not exceeded the cost cap,” said the Honda Spokesperson to BBC.
Similarly, an Alpine spokesperson confirmed that the breach was purely administrative and not related to financial overspending. They are in regular communication with the FIA to ensure future compliance.
“The breach in question is directly in relation to Alpine Racing SAS (Viry-Chatillon) and relates to an administrative issue, and is in no way associated to financial overspending. We acknowledge and accept the findings of the review process and remain in regular dialogue with the FIA to ensure future compliance,” said a Spokesperson from Alpine.
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Not the first instance
The FIA's statement also noted that all 10 teams complied with the cost cap on chassis manufacturing. Last year they marked the first season the cost cap applied to engine manufacturers. In the previous season, Red Bull was found to have overspent by over £1.8m, resulting in a $7m fine and a 10% reduction in aerodynamic research time. Aston Martin was fined $450,000 for a procedural breach in the same year.
The statement
"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 co-operating with the CCA to finalise the matter,” the statement read.
“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,” the statement added.
This season's budget cap findings will be revealed in 12 months. The 2024 F1 season resumes this weekend with the Azerbaijan Grand Prix in Baku.
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