Honda and Alpine Fined for F1 Cost Cap Violations in First Year of Regulations
Formula 1’s governing body, the FIA, has fined Honda and Alpine for procedural breaches of the engine cost-cap rules introduced in 2023. Although both manufacturers stayed under the $95 million limit, Honda will pay a $600,000 penalty, while Alpine’s fine totals $400,000.
So why were they fined?
This year marked the introduction of cost restrictions specifically for engine suppliers in Formula 1, pushing manufacturers to operate under financial limitations similar to those already applied to teams. While the budget cap ensures spending remains under control, some costs for current engines are not included as the new regulations are still being refined.
Honda was fined due to submitting incorrect financial documentation with the documents listing incorrect, excluded, and/or adjusted costs related to the maintenance of engine dynamometers, and inventories.
Alpine’s breach is a result of delays in submitting information, with documents missing essential details.
Despite the errors, the FIA noted that both companies acted “in good faith” and had cooperated fully throughout the investigation. The FIA also stated that neither Honda nor Alpine gained a competitive advantage from their breaches.
"There is no accusation or evidence that either manufacturer has sought or obtained any undue advantage as a result of the breach,” read the FIA’s report, recognizing the companies' efforts to provide additional information when requested.
This isn’t the first time F1 has seen budget-cap breaches. Aston Martin and Williams were previously fined for procedural errors, and Red Bull incurred a substantial fine in 2021 for exceeding the team budget cap, affecting their wind tunnel time as a further penalty.
This season, however, all 10 teams fully complied with the budget cap, a positive sign as F1 looks to maintain financial discipline across the sport.
What’s next for Alpine and Honda?
For Honda, the fine follows their recent announcement to shift from Red Bull to Aston Martin as their exclusive engine supplier in 2026, when the new F1 regulations take effect. Red Bull, meanwhile, has secured a partnership with Ford, effective after next season.
Alpine, backed by parent company Renault, plans to exit F1 engine production altogether by 2026. Renault will instead focus on other ventures, including Alpine’s supercar production and battery development.
