Yahoo Autos Nissan, Jaguar punished for Formula E cost cap breaches
Jaguar and Nissan have been hit with fines and testing restrictions for breaching Formula E’s cost cap regulations during the 2022-23 season, following the FIA’s Cost Cap Administration process. They are the first-ever breaches of Formula E’s cost cap regulations.
Formula E introduced a cost cap of €13 million per season from the 2022-23 campaign – the ninth season of the all-electric series, and the first in which the GEN3 car was raced. Additionally, and separate from teams, powertrain manufacturers are only allowed to spend €25 million over the course of two consecutive seasons as of Season 9.
Jaguar Racing and Nissan Nissan Formula E team – the teams, not the manufacturers – were deemed to have committed procedural and minor overspend breaches during Season 9, with Nissan’s breach being 2 percent of the €13 million cost cap, and Jaguar’s breach being by 0.6 percent.
Nissan’s breach was said to be by €269,252, for incorrectly excluded and/or adjusted costs relating to simulator and travel costs, car component costs, social contribution costs, the offsetting of apprentice subsidy and other recharges, and costs of services received by its manufacturer partner (Nissan).
Jaguar’s breach, meanwhile, was by £73,849, and related to unrecorded costs of paddock fees, truck rental costs, simulator development costs, an overstatement of marketing activities, and “costs in respect of non-Formula E activities”.
The FIA said that both teams have “acted cooperatively throughout the review process and have sought to provide additional information and evidence when requested in a timely manner, that this is the first year of the full application of the Financial Regulations and that there is no accusation or evidence of aggravating factors or that they have sought at any time to act in bad faith, dishonestly or in fraudulent manner, and nor has it wilfully concealed any information from the Cost Cap Administration.”
For its breach, Nissan will pay a fine of €300,000 and will lose half a day (three hours) of running on the first day of pre-season testing for the upcoming season. Jaguar, meanwhile, gets a €100,000 fine and a loss of half a day of running on the first day of pre-season testing. All punishments come as part of an Accepted Breach Agreement reached by both teams with the FIA. Both decisions are final and cannot be appealed.
In response to the ruling, Nissan, in a statement sent to RACER, said, “Following the review of the Reporting Documentation for the 2022-2023 ABB FIA Formula E World Championship by the FIA Cost Cap Administration, Nissan Formula E Team recognizes to have unwittingly and unintentionally incurred in a minor procedural and overspend breach of less than two percent of the Cost Cap.
“The team has therefore signed an Accepted Breach of Agreement (ABA) as offered by the FIA Cost Cap Administration in order to resolve this matter. Following a very cooperative review process with the Cost Cap Administration and an exhaustive internal audit, Nissan Formula E Team has determined that these minor breaches are exclusively related to the process of interpretation and adaption of the new Financial Regulations at a time when the team was also facing specific challenges linked to its change of ownership, full restructure, and relocation.
“Nissan Formula E Team has since put in place all the necessary precautions to avoid these kinds of miscalculations and oversights in the future.”
The breaches are the first of their kind in Formula E. Simon Galloway/Motorsport Images
Jaguar, in a statement of its own, accepted the ruling, and said that had it filed correctly, it would have been compliant.
“Like all Formula E teams, we have welcomed the introduction of the FIA Formula E Financial Regulations and have worked transparently and cooperatively with the Cost Cap Administration throughout this first full reporting period covering Season 9,” the team said.
“It’s an extremely complex process and while at all times JRL acted in good faith with honesty, integrity and in a spirit of transparency and cooperation, we acknowledge that procedural filing errors have led to the minor overspend breach of 0.6%, GBP £73,849.
“Following consultation with the FIA, we believe that had we filed correctly we would have been fully compliant with Teams’ Cost Cap and the minor overspend breach would not have occurred. Unfortunately, we understand a re-filing is not allowable by the current Regulations and therefore due to these unintended procedural errors we are in a very minor overspend position. At no time did we seek or gain a technical or sporting advantage, as can be seen and confirmed by the Cost Cap Administration’s findings and the nature of the ABA.
“We will continue to work closely with the FIA going forward on the development and application of the cost cap and in the best interests of Formula E – the pinnacle of electric racing.”
Jaguar finished second in the 2022-23 season, with four wins (all courtesy of Mitch Evans), while Nissan finished seventh, its best finish being a second place in the second race of the Rome E-Prix by Norman Nato, who was recently re-signed by the team for upcoming season after a year with Andretti.
