For , he was signed by Arrows team boss Jackie Oliver to partner British driver Derek Warwick (Cheever's appointment coincided with the U.S.-based USF&amp;G financial group becoming the team's major sponsor). Cheever and Warwick (who had been teammates at TWR the previous year) were evenly matched and would have many on-track battles throughout 1987 and . He secured third place at the 1988 Italian Grand Prix at Monza; at one stage, he was almost disqualified when his Arrows A10B's 150-liter fuel tank was found to actually contain 151 liters. Luckily, further examination revealed the tank size to be 149 liters and his third-place stood. The podium cost him a new pair of sunglasses for the chief mechanic. Monza, won by the Ferrari of Gerhard Berger, was the only time the McLaren-Hondas of Alain Prost and 1988 World Champion Ayrton Senna did not win a race in 1988. Cheever's third place in the 1988 Italian Grand Prix was also the final podium for the turbocharged l4 BMW M12 engine (badged as "Megatron" in 1987 and 1988). At the time, it was the oldest turbo engine in use in Formula One, having been first used by the Brabham team in 1982.