Alpine and Honda penalized for financial errors on engines for F1 2026

The FIA (International Automobile Federation) announced that Alpine Racing and Honda Racing Corporation (HRC) made errors in the financial documentation related to the development of engines for the 2026 Formula 1 season. Although both manufacturers kept their costs below the established limit, problems were detected in the submitted reports. These violations do not directly affect the Alpine and Red Bull teams on the track, as they are solely related to financial matters.

What exactly happened?

The FIA has strict financial rules to control the expenses that engine manufacturers can incur. This is known as the "cost cap" and aims to keep the Formula 1 competition as fair as possible. Teams and manufacturers must report all their annual expenses in detail.

In this case, both Alpine and Honda reported their 2023 expenses, but upon reviewing the documents, the FIA found errors in the way some costs were calculated or presented. These errors did not mean the manufacturers spent more than allowed, but they failed to follow certain procedures when preparing their financial reports.

What kind of errors were made?

• Honda Racing Corporation (HRC): Honda's mistake was including some costs that should not have been counted that way. For example, expenses related to the maintenance of engine test equipment (known as dynamometers) and the calculation of inventories were not correctly reported. These errors were classified as a procedural breach.
• Alpine Racing: Alpine made a different error. Instead of misreporting some costs, they submitted an incomplete report. Their first expense report did not meet all the requirements and lacked important information, which delayed the FIA's review process.

What penalties did they receive?

The FIA proposed an "Accepted Breach Agreement" (ABA) to both manufacturers. This means that by acknowledging their mistakes and accepting the agreement, Alpine and Honda avoided more severe penalties or the possibility of an appeal.

• Honda was fined 600,000 USD for their errors in cost reporting. They must also pay the expenses incurred by the FIA to review the case.
• Alpine received a smaller fine of 400,000 USD since their breach was considered less severe, although they will also have to cover the related administrative costs.

Does this affect the Alpine and Red Bull teams?

No, these agreements do not directly affect the Alpine or Red Bull teams in races. The penalties are solely related to how Alpine Racing SAS (which manufactures engines for the Alpine team) and Honda Racing Corporation (HRC) (which supplies engines to Red Bull) handled their financial reports.

• Alpine Racing SAS: Although the sanction affects Alpine's engine manufacturer, it does not impact the team's performance on the track. The Alpine team can continue using their engines without any issues.
• Honda Racing Corporation (HRC): Honda manufactures engines for Red Bull, but this sanction does not affect the team's performance. Red Bull is not involved in the breach and receives no penalty.

Why are these errors important?

It is crucial to understand that these errors did not give the manufacturers any advantage in terms of track performance. The FIA made it clear that there is no evidence that Honda or Alpine acted in bad faith or tried to hide information. Since the financial regulations are new and complex, it is expected that manufacturers will adapt their procedures to fully comply with the rules in the coming years.