All ten Formula One teams successfully adhered to the cost cap regulations for the second consecutive year in 2023. However, the governing body, the FIA, announced on Wednesday that procedural breaches were identified for engine manufacturers Alpine and Honda. This was the third year that teams were subjected to the cost cap, which was set at $138.6 million for the 2023 season, and the first year for power unit manufacturers under these regulations as the sport transitions towards new engines in 2026.
The FIA confirmed that despite the procedural breaches, neither Alpine Racing SAS nor HRC (Honda Racing Corporation) exceeded the cost cap limit. Both teams have assured the FIA that they acted in good faith throughout the process and are cooperating fully with the Cost Cap Administration (CCA) to resolve the matter.
The FIA stated that the CCA intends to propose a settlement through an Accepted Breach Agreement (ABA) taking into account the nature of the breaches, the complexity of the new financial regulations, and the challenges associated with their initial implementation.
While the specifics of the procedural breaches were not detailed, they might involve late submissions of documents or errors in the submitted documentation. An ABA would typically involve a financial penalty rather than any sporting sanctions.
Alpine is currently owned by Renault, while Honda is a partner to reigning champion Red Bull. Honda will be powering Aston Martin from 2026 onwards.
In 2022, Aston Martin was fined $450,000 for a procedural breach, and Williams paid a $25,000 fine under an ABA for missing the deadline to submit their 2021 financial accounts.
All other four power unit manufacturers who have applied to compete in the 2026 season were found to be in compliance with the cost cap regulations. The 2023 engine regulations set a spending limit of $140.4 million.
