Alpine Partners with Mercedes for Engine Supply in Strategic Shift from Renault Starting 2026

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Alpine Partners with Mercedes for Engine Supply in Strategic Shift from Renault Starting 2026
Alpine Partners with Mercedes for Engine Supply in Strategic Shift from Renault Starting 2026

Alpine Formula One has confirmed a new partnership with Mercedes for engine and gearbox supply, starting in 2026 and continuing through 2030. This arrangement marks a major shift from Alpine’s reliance on its parent company, Renault Group, for engine production. With Mercedes taking on Alpine as a new client, alongside existing agreements with McLaren and Williams, Mercedes will remain a prominent engine supplier in Formula One, even as it loses Aston Martin to a new Honda partnership in 2026. This agreement allows Alpine to benefit from Mercedes’ established power unit technology while maintaining a long-term supply agreement.

The move follows Renault Group’s decision to end Alpine’s independent engine program after assessing that the investment was not delivering the anticipated returns. Renault Group CEO Luca de Meo expressed that the project would likely face insurmountable challenges without a shift in approach, which led to the termination of Alpine’s in-house engine development after the 2025 season. Starting in 2026, Alpine will rely fully on Mercedes for power units and gearboxes, allowing the team to focus more on other areas of competition while cutting down on the costs of engine research and production.

Alpine Partners with Mercedes for Engine Supply in Strategic Shift from Renault Starting 2026
Alpine Partners with Mercedes for Engine Supply in Strategic Shift from Renault Starting 2026

Since its entry into Formula One in 1977, Alpine has produced its engines at the Viry-Chatillon facility in France, marking an end to nearly five decades of in-house development. This change signifies a growing trend within the sport, as more teams opt for established suppliers over developing engines independently. With Alpine’s new deal, Mercedes will serve as the engine supplier for three teams in 2026, ensuring it maintains a significant role as a supplier despite Aston Martin’s upcoming switch to Honda.

This partnership with Mercedes is expected to bring substantial financial relief to Alpine, especially given that the team’s profits fell by 70 percent in 2023 to £7.8 million ($10.4 million). By shifting engine production to Mercedes, Alpine is set to save on development and manufacturing expenses, which will be essential in stabilizing its financial outlook in the coming years. The cost reductions from this deal are also likely to support Alpine’s long-term competitiveness and financial health as it continues its journey in Formula One.

Renault Group’s strategic decision to partner with Mercedes also leaves the door open for a potential sale of Alpine if needed. Although CEO Luca de Meo previously ruled out the possibility of a sale in 2023, the reliability and reduced costs brought by Mercedes engines may make Alpine a more appealing asset for prospective buyers. This collaboration, therefore, secures Alpine’s immediate needs while offering Renault Group flexibility for the team’s future in Formula One, depending on how its executive priorities evolve.

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