Everything we know about Alpine’s Mercedes power unit deal after scrapping their works engine division

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Alpine have confirmed the Formula 1 team will get power units from Mercedes after scrapping their works engine division, so F1 Oversteer looks at all you need to know.

Groupe Renault made the shock decision to scrap its F1 engine programme at the motoring giant’s fabled Viry-Chatillon factory this September. Alpine are the sole team on the current grid using Renault engines but have regularly been down on power compared to their rivals.

Renault continually struggled to build a competitive engine since Formula 1 first introduced the 1.6L V6 turbo-hybrid power units in 2014. So, after also rebranding its F1 team as Alpine in 2021, Renault yanked the plug and has now made the team a Mercedes engine customer.

Alpine will also use Mercedes gearboxes when the team makes the move in 2026 under the incoming Formula 1 engine regulations. So, with that in mind, F1 Oversteer has taken a look into everything that you need to know about Alpine’s move to buy Mercedes power units…

Alpine will start to buy Formula 1 power units from Mercedes in 2026

Alpine and Mercedes agreed a multi-year contract in November 2024 which will the Enstone outfit buy power units and gearboxes from the Silver Arrows’ High Performance Powertrains division starting in the 2026 season when Formula 1 introduces its latest engine regulations.

Executives for Alpine also spoke with other engine manufacturers about a supply deal after Groupe Renault decided to scrap its works power unit programme. But Mercedes were the desired partner over uniting with Ferrari, Honda, Red Bull Powertrains or newcomers Audi.

READ MORE: Everything to know about Alpine F1 Team from team principal to lineage

Audi will debut in Formula 1 in 2026 as a factory team and as a works power unit producer after buying Sauber. Red Bull will also become power unit producers in 2026 in partnership with Ford following Honda pulling out of F1, just to return in partnership with Aston Martin.

Aston Martin dropping their customer Mercedes engine deal to become a works team with Honda under the 2026 regulations opened a door for Alpine to swoop. Mercedes also build the power units McLaren and Williams use, with those teams even locked in through 2030.

How long is Alpine’s contract to buy engines and gearboxes from Mercedes?

Mercedes agreed to give Alpine a Formula 1 engine and gearbox supply contract until 2030 as the Enstone squad moved from being a works team to a power unit customer. It marked the first time that Alpine including as Renault were a customer team since as Lotus in 2015.

The Enstone natives have also solely used Renault power units since the French automotive brand bought the Formula 1 team back from Lotus before the 2016 season. Lotus had used Mercedes engines in the 2015 season with drivers Romain Grosjean and Pastor Maldonado.

READ MORE: Everything to know about Formula 1’s 2026 engine and chassis regulations

Alpine will now complete the list of Mercedes engine customer teams on the Formula 1 grid from 2026 alongside McLaren and Williams. All three squads are also signed up to purchase power units from the Silver Arrows’ Brixworth division through, at least, the 2030 F1 season.

Why have Alpine chosen to buy power units from Mercedes?

Alpine sought a contract with Mercedes for at least 2026-2030 to ensure they have a supply of power units through the latest set of Formula 1 engine regulations. It is widely expected that Mercedes will have the best power unit when Formula 1’s regulations change in 2026.

Ferrari are also expected to have one of the best 2026 F1 power units but teams have rarely tasted success as a customer of the Scuderia. The only team to ever win a Grand Prix with a Ferrari engine other than the Maranello natives was Toro Rosso back at the 2008 Italian GP.

Mercedes, on the other hand, have traditionally handed their customer F1 teams the same engines that the factory Brackley natives run. McLaren even used Mercedes power units to challenge for the drivers’ and constructors’ titles during 2024 as the Silver Arrows struggle.

How much are Alpine paying for Mercedes F1 engines?

It currently remains unconfirmed how much Alpine will pay Mercedes to buy F1 power units and gearboxes from the Silver Arrows starting in 2026. But reports have claimed that Alpine will pay Mercedes upwards of £15m a year for their engines alone with the price set to rise.

Currently, Formula 1’s rules dictate that power unit manufacturers can charge a maximum of £10.5m per year for engines. But the real price of a Formula 1 power unit is nearer to £13m per each unit as teams even need to purchase auxiliary aspects from their engine providers.

Why has Renault axed its Formula 1 engine programme?

Groupe Renault risked an internal war in September 2024 when it confirmed the end of the Formula 1 engine programme at its Viry factory which has solely supplied Alpine since 2021. But Renault ruled that Viry will stop building Alpine’s engines at the end of the 2025 season.

Renault engines have been a staple of Formula 1 since 1977 and have secured multiple race wins and championships. But Red Bull were the last team to win a title with Renault engines in 2013 during the final season in which Formula 1 ran V8 engines before moving to hybrids.

Since the switch to turbo-hybrid power units in 2014, Renault engines have never been able to match what Mercedes, Ferrari and Honda created. So, Groupe Renault CEO Luca de Meo decided that enough was enough and the Viry factory will transform into ‘Hypertech Alpine’.