Alpine Is Saving Around $105 Million by Choosing Mercedes Engines

Earlier this week, Alpine revealed that it had decided to shut down its powertrains department and become a Mercedes customer team instead. The French squad, which currently produces its engines at its Viry-Châtillon base under Renault’s banner, announced this decision as a part of its ‘Hypertech’ transformation project. This decision will also save Alpine over a hundred million dollars.

The deal signed with Mercedes will see the German manufacturer supply power units and gearboxes to Alpine from 2026 until at least 2030. However, reports suggest that Alpine plans to take over the gearbox department starting in 2027.

Journalist Tom Clarkson recently revealed the financial implications of this deal, highlighting just how expensive it has been for Alpine to produce its own engines over the years.

“It is saving a load of money,” Clarkson said on the F1 Nation Podcast. “It’s about a €100 million (approx. $105 million) swing between developing your own engines and being a customer because, of course, the FIA set a price cap on what the power units cost at €17 million (approx. $18 million), whereas it’s more than €100 million to develop your own, which is what Renault have been doing at their Viry-Châtillon base.”

The FIA’s price cap for customer engines is set at $18 million. However, producing power units independently gets significantly costlier. It includes research, development, testing, and also maintaining cutting-edge facilities, all of which add up quickly.

Alpine’s parent company Renault has been managing these expenses for years, but with tighter budgets and a push for efficiency across the sport, continuing no longer made sense for the top brass.

Alpine could be even more competitive with a Mercedes engine

The end of Alpine’s engine program will also mark the conclusion of Renault’s long-standing legacy as an engine supplier in F1. Renault power units have been a key part of the sport for decades, featuring in over 400 races, and have helped both their team and others, like Red Bull, achieve Championship glory.

However, becoming a customer team does not mean Alpine will abandon its championship ambitions. Teams like McLaren have shown that it is possible to compete for wins and titles without operating an in-house engine department. Alpine could adopt a similar approach, focusing its resources on car development and optimizing the performance of its chassis and aerodynamics.

Choosing Mercedes as its engine supplier is a smart decision for Alpine. Since the start of the turbo-hybrid era in 2014, Mercedes has consistently produced some of the most powerful and reliable engines on the grid. With the 2026 regulation changes expected to focus on engines, this move could work to Alpine’s advantage.