What happens next after Alpine and Honda F1 cost cap breaches?

Alpine Racing SAS and Honda Racing Corporation (HRC) have both been found to be in a procedural breach of F1's power unit cost cap rules for 2023.

Coming into force on January 1st, 2023, the PU manufacturer cost cap was brought in to run parallel with the cost cap for grand prix teams that has been in force since 2021.

For the teams, the cost cap limit was a flat rate of $135 million for the season, although with the addition of two races beyond the 21 stipulated, an extra $1.8 million per race was allowed, bringing the total to $138.6 million. All 10 teams were found to be in compliance and under the limit.

For the PU manufacturers a spending limit of $95 million for the year was imposed, with the FIA finding that both Alpine and HRC had met this cap. 

However, both were found to have committed procedural breaches of the rules, meaning they must enter into an Accepted Breach Agreement with the FIA. 

What is an Accepted Breach Agreement?

An Accepted Breach Agreement (ABA) is the formal mechanism by which FIA penalises breaches of the cost cap.

In 2022, it was how Red Bull was penalised for breaching the 2021 spending limit, being handed a $7 million fine and being docked wind-tunnel and CFD time from its development allowance for the '23 car.

An ABA is only permitted if a team or PU manufacturer commits a procedural breach, as Alpine Racing SAS and HRC have done or a Minor Overspend.

In 2022, Aston Martin and Williams were found to have committed procedural breaches to the rules for 2021 along with Red Bull's actual overspend. All three entered into ABAs. 

What will the punishment be?

Williams entered into its ABA with the FIA in May 2022 and was fined $25,000 for its procedural breach of the rules. 

In the case of Aston Martin's procedural breach, the FIA found that it had excluded or adjusted 12 separate costs in its 2021 submissions - promptly fining the team $450,000. 

In both cases, the costs of the FIA's cost cap body were also borne by the teams. 

In its statement, the FIA noted that "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)."