Formula 1 engine manufacturers agree customer cost cap with FIA

Formula 1 has agreed a way forward with regard to the cost and supply of power units, Autosport has learned

Formula 1 engine manufacturers agree customer cost cap with FIA

With no formal announcement expected from the FIA, news has emerged following a two-day meeting in Geneva, initially of the Strategy Group on Monday, followed by the F1 Commission on Tuesday.

The four engine manufacturers - Mercedes, Ferrari, Renault and Honda - have agreed to a reduction in cost to supply the 1.6-litre V6 turbo-charged hybrid systems to €12million per season to a customer team.

They have also provided assurances the whole grid will be supplied, with new regulations due to come into force in 2018 and, once written, to remain stable for three seasons through to the end of 2020.

Such moves are to be implemented in a positive response to the threat of an independent engine, as proposed by FIA president Jean Todt and F1 supremo Bernie Ecclestone late last year.

Towards the end of 2015, the manufacturers were charged with the task of addressing a number of issues, which also included the simplification of the technical specification and an improvement in noise.

The quartet had until January 15 to present their proposals to Ecclestone and Todt ahead of this week's Geneva meetings, from which a positive outcome has emerged.

There is currently formal approval for the aforementioned plans, which will help ease the cost burden on the smaller teams, who were paying around €20-25million per annum for an engine supply.

It means the independent engine idea is now firmly off the table, pending final agreement amongst the teams, to be ratified by the World Motor Sport Council in March.

By way of further cost reduction, drivers are to be limited to three gearboxes per season.

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