Alpine and Honda Racing Corporation have been found to be in procedural breach of the Power Unit Financial Regulations notwithstanding the fact that their Relevant Costs during the 2023 reporting period were under the Cost Cap.

The Cost Cap Administration offered to both manufacturers an Accepted Breach Agreement ("ABA") to resolve these matters and the offer was accepted by both.

The Cost Cap Administration recognised that both acted cooperatively and in good faith throughout the review process and sought to provide additional information and evidence when requested in a timely manner, that this is the first year of the full application of the Power Unit Financial Regulations and that there is no accusation or evidence that either has sought or obtained any undue advantage as a result of the breach.

In Alpine's case, the French manufacturer's initial report contained significant deficiencies, while several required procedures had not been performed at all, and several other procedures had only been partially completed.

As for Honda, the Japanese manufacturer breached Articles 8.1 and 8.2(e) of the Power Unit Financial Regulations due to its failure to file accurate reporting documentation in respect of the 2023 period because the reporting documentation submitted included incorrect excluded and/or adjusted costs in the calculation of its relevant costs.

Alpine accepted that it had breached Articles 8.1, 8.2(d) and 8.2(e) of the Power Unit Financial Regulations, in delaying the exercise by the Cost Cap Administration of its regulatory function and in submitting Reporting Documentation in respect of the 2023 Reporting Period that was inaccurate by omitting relevant information.

It accepted the imposition of a penalty of $400,000 to the FIA within 30 days of the date of execution of the ABA (Article 9.5 of the Power Unit Financial Regulations); and bears the costs incurred by the Cost Cap Administration in connection with the preparation of the ABA.

Similarly, Honda must pay a $600,000 penalty and also bears the costs incurred by the Cost Cap Administration.