Honda, Renault could be fined for F1 budget breaches

It is possible Formula 1 engine suppliers Honda and Alpine (Renault) will be fined for breaching last year’s budget cap.

In a statement, the sport’s governing body, the FIA, said every team successfully complied with the complex cost limit rules last year.

However, with separate cost restrictions now also applying to engine manufacturers, both Honda (HRC) and Alpine (Renault) were found to have committed "procedural breaches".

The statement, however, clarified that "neither have exceeded the cost cap level", and both "acted at all times in good faith and are currently cooperating ... to finalise the matter".

In 2021, Red Bull was found to have broken the cap as well as committing procedural breaches - offences McLaren CEO Zak Brown said at the time "constitute cheating".

But the FIA sounds likely to go easy on Honda and Alpine this time around due to "the nature of the breach", and the "complexities" of the brand new rules applying to engine manufacture.

It is therefore the FIA’s "intention to propose to these two PU manufacturers to settle their respective breaches by means of an Accepted Breach Agreement" or ABA.

According to Auto Motor und Sport, the agreement will involve the manufacturers admitting wrongdoing, waiving the right to appeal, and agreeing to the penalties.

"It is difficult to say how severe the sanctions will be," correspondent Tobias Gruner explained. "The FIA can impose a fine or sporting penalties, such as reducing test bench times," he added.

Gruner predicts that only fines will apply for Renault and Honda’s breaches.