F1 | Famin: “Low revenues and high PU costs, it pays to be a customer”

The Belgian Grand Prix weekend saw confirmation of rumours that had been circulating for weeks, namely Alpine’s more than likely farewell to Renault engines starting in 2026, the year in which the new technical cycle for Power Units will begin.

Team Principal Bruno Famin confirmed this himself, also revealing a few more details about the reasons and process that led the French brand to make a decision of profound significance, given that Renault’s legacy in the world of Formula 1 dates back to the 1970s, even if not always officially.

this decision has a profound meaning. Renault’s legacy in the world of Formula 1 as an engine manufacturer dates back to the 1970s and, although not always officially, has often represented one of the most important and significant constructors. A story that should end at the end of next year because, as explained by Bruno Famin, the Viry headquarters should be used for other extra-F1 projects useful to the group, definitively abandoning work on the creation of the 2026 Power Unit.

Renault’s decision to end the Power Unit project represents a major change for a manufacturer that has its roots in Formula 1 way back in the Seventies, but such a radical choice finds its reasons in both competitive and financial factors. It is no mystery that in the last technical cycle the French engine has lagged behind the competition, so much so that last year there was even speculation of an intervention by the FIA ​​to level the situation, at least before this idea faded.

“At the moment the current engine is a little behind its rivals by about 20hp, I think that’s what the FIA ​​data says,” Famin explained, underlining the current situation of the Renault engine. After starting the technical cycle of these engines with a very unreliable unit, the French engineers have still managed to make a step forward, although the gap estimated on average by Famin remains around two tenths per lap, although clearly this figure depends on the track.

Of course, however, Alpine is missing much more than two tenths and this also depends on other aspects that are not up to par, such as the chassis and aerodynamics. According to Famin, in fact, the team cannot hide behind the Power Unit issue, because it has several problems, such as the lack of traction and load.

However, this is not the only reason that pushed Renault to reevaluate the project. In view of the next technical cycle, Renault would have had to continue to supply only one team, namely Alpine, while all the other teams would have relied on other manufacturers. The only possibility of having a customer team was the entry of Andretti, which had already drawn up a pre-agreement with Alpine in the event that it received the green light from Formula 1 for its entry on the grid. The decision taken by Liberty Media to reject the proposal of the American team led to the expiration of the agreement with the Renault group.

Bruno Famin, Team Principal, Alpine F1 Team

Photo by: Sam Bagnall / Motorsport Images

Famin, who will step down as Team Principal in favor of Oliver Oakes at the end of August, stressed that engine manufacturers do not receive a share of F1 prize money unlike chassis manufacturers: in fact, all teams receive part of the proceeds shared with Liberty Media, but this does not extend to engine manufacturers. This is an aspect that Famin believes is fundamental in the evaluation of such an expensive project, especially considering that the engines are then resold at a fixed price to the various customers, as established by the Formula 1 regulations.

“It’s a fact that the business model, if you will, is a bit strange,” Famin told the official Formula 1 podcast, “Beyond the Grid.”

“We know that with the Concorde Agreement the prize money system benefits only the teams. On the other hand, the FIA ​​has a financial regulation and a sporting regulation that makes it mandatory for the manufacturer to sell, at a maximum price, the Power Units to the teams that want to have them.”

While it is true that starting in 2026, Formula 1 will also impose a maximum cost cap on Power Units, precisely to respond to this aspect, similarly to what happens with teams, clearly the financial outlay will still be very high. In fact, F1 will introduce a budget cap set at around 130 million dollars, a high figure in any case, especially if you end up having only one customer team and the performance is not on par with that of the opponents, both on the engine side and on the team side.

Alpine A523, technical detail

Picture of: George Piola

For example, a few years ago Honda had chosen to face the Toro Rosso challenge but with the sole aim of then supplying engines to Red Bull, a high-ranking team with which it could have aspired to win the title, as it actually did. The same logic was applied for the return in 2026, for which it decided to ally itself with Aston Martin, a team that is investing large sums to build a group that can fight for the world title.

For this reason, according to the leaders who have come to make a decision, becoming a customer of another manufacturer can potentially be interesting from a financial point of view. “When you look at the research and development costs to build a Power Unit compared to buying one from another manufacturer, there is a huge difference,” Famin explained.

“This huge difference is not compensated by any prize money, because the prize money goes to the teams. So we are not talking about performance, but about a huge difference in terms of money.”

“These are public aspects that everyone knows. The cost ceiling, the amount of money granted to Power Unit manufacturers to develop their project, the supply price of a PU and the selling price of an engine are also public. It is something like 120 million euros for annual costs, 17 for resale, so it doesn’t take much to do a calculation”.