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Alpine to Cut Renault Power for Mercedes Engines in 2026 due to Financial Struggles

Carl Smith by Carl Smith
January 9, 2025
in Motorsports
Reading Time: 3 mins read
0
The potential impact of Alpine’s recent F1 team leader swap

Alpine F1 Instagram

Alpine has confirmed it will no longer use Renault engines from the 2026 Formula 1 season, opting instead for Mercedes power units as part of a dramatic overhaul aimed at saving the struggling team. CEO Luca De Meo revealed that the decision was made to prevent Alpine’s total collapse within two years, citing severe financial losses and a need to restructure.

Renault’s exit from engine production had been speculated for months, and Alpine’s shift to becoming a customer team marks a turning point for the brand’s F1 future. According to De Meo, Alpine has been losing a staggering €40 million daily since he took charge, pushing the CEO to make what he described as a “decisive” move to stabilize the project.

“We’ve been spiraling downwards for three seasons,” De Meo told L’Equipe. “If we continued like this for another two years, the project would have completely collapsed. We had to act and make changes.”

Alpine’s sharp drop to ninth in the Constructors’ Championship this season has led to a significant financial hit. De Meo highlighted that poor performance has cost the team millions in lost sponsorship deals and bonuses, further justifying the pivot away from Renault’s engines.

“We are losing bonuses and sponsors because of our standings,” De Meo added. “It’s embarrassing finishing in 16th and 17th places. We’re just not competitive.”

De Meo, who took over as CEO in July 2020, emphasized that his role as a leader of a listed company required him to make tough, business-minded decisions. The move to Mercedes power units is seen as a bid to reverse Alpine’s fortunes and make the team more competitive as F1 undergoes a rules overhaul in 2026.

“We had to rethink the project if we ever want to win,” De Meo stated. “As a manager, my responsibility is to make decisions that are in the best interest of the business.”

Despite rumors circulating that former team principal Flavio Briatore had been brought back to prepare Alpine for a sale, De Meo refuted these claims, clarifying that Briatore’s role was focused on revitalizing the team rather than packaging it for a sale.

“I’ve heard the rumors about Flavio and selling the team. It’s completely false. I didn’t bring him in to exit F1,” De Meo affirmed. “We are committed to staying. Flavio is here to help reorganize and refocus on Enstone.”

De Meo also dismissed any intention to sell the team, despite acknowledging that financiers and investors regularly approach him, eager to enter the F1 arena before costs skyrocket post-2026.

“Every other week, I get calls from investors who want a piece of F1. They know that after 2026, the value of teams could skyrocket,” he explained. “If I sold for a billion today, they could flip it for triple. But I’m not interested; I’m not stupid. F1 is vital for Alpine’s brand presence. We’re in an exclusive club, and it gives us credibility.”

Alpine’s decision marks a strategic shift as the team seeks to reclaim competitiveness, leveraging the reliability of Mercedes’ engines and the expertise of its newly reorganized team. With De Meo’s commitment to rebuilding Alpine, the team is poised to undergo a transformation in preparation for the new era of Formula 1.

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