Formula 1 engine manufacturers agree to lower Power Unit costs

Formula 1 manufacturers have agreed to supply power units to customer teams at a lower price.

F1’s four engine manufacturers, Mercedes, Ferrari, Renault and Honda have all agreed to reduce the price of a 1.6-litre V6 turbo-charged hybrid system to €12million per season to a customer team. This agreement will help ease the cost burden on smaller teams, paying around €20-25million per year for their engine supply.

The new regulations will come into force ahead of the 2018 season and will remain in place for at least 3 seasons, provisionally set to end in 2020, providing the final hurdle of having the agreement finalised between Formula 1 teams and the World Motor Sport Council in March.

The positive news emerged following discussions at the Strategy Group meeting on 18 January and the F1 Commission on 19 January, with no formal announcement expected. With an ongoing stand-off between the FIA and manufacturers after Ferrari decided to ban a cost cap on customer engines last year.

This prompted president of the FIA, Jean Todt and F1 boss Bernie Ecclestone to join together to push for an alternative to an ‘budget’ engine, this threat being an independent engine, something Red Bull Racing in particular were eager to see after their disappointing season with Renault power in 2015.

With this news however, the independent engine idea has been firmly pushed off the table.