“Having that in the background is probably…unfortunate in all ways, isn’t it?” Honda Racing Corporation president David Salters dropped these ominous words over a year ago. That was just after Team Penske sent shockwaves across IndyCar with its push-to-pass scandal. Josef Newgarden lost his race win at St. Petersburg, and Scott McLaughlin lost his runner-up finish.
Within a year, further worrisome developments emerged. Yet another scandal unfolded in Roger Penske’s fold, painting a dire light on his team. This is further motivating the Japanese automobile giant to pack its bags. That is all the more so because of Penske’s monopoly in the $300 million empire.
Bad news is looming for Roger Penske
Well, the contribution of Honda to the IndyCar Series has been huge. Behind Roger Penske’s ownership, HRC designs, tests, and builds the engines that have won 14 of the last 21 IndyCar championships. Since 2004, Honda has won the Indianapolis 500 15 times. Basically, the Japanese automobile giant’s contribution has been huge – it probably helped save IndyCar after its open-wheel civil war. However, ever since Penske took over IndyCar in 2018, things have become complicated. The St. Pete scandal got a sequel prior to the 2025 Indy 500, when the cars of Newgarden and Will Power were found to have illegal attenuations. These twin scandals are accompanied by something else.
Although Honda is a major stakeholder in IndyCar, it has competition from another brand getting Roger Penske‘s support. Penske has a large stake in Ilmor Engineering, which designs and manufactures engines for Chevrolet, Honda’s biggest competitor. The Japanese brand’s contract expires after 2026, and it seems unlikely that Honda would renew. Journalist Adam Stern quoted Honda’s recent words from a Los Angeles Times article on X: “Honda said in a written statement Thursday that it has many concerns, among them ‘the relatively high overall cost to participate as an engine supplier’ and ‘the potential (perceived or real) conflict of interest which may exist’ with Penske’s ownership.”
“Honda said in a written statement Thursday that it has many concerns, among them ‘the relatively high overall cost to participate as an engine supplier’ and ‘the potential (perceived or real) conflict of interest which may exist’ with Penske’s ownership.” https://t.co/05sXQatRh8
— Adam Stern (@A_S12) June 1, 2025
Talks are apparently going on about Team Penske handing race control duties as soon as 2026 or 2027 to an outside body like USAC or the FIA. Roger Penske clearly denied such a conversation in April: “I don’t want to leave this conversation with (you all) knowing that I understand the integrity, and there’s got to be a bright line. To me, I know what my job is, and hopefully I’ve got enough credibility with everyone that we can be sure that there is not a conflict.” However, this statement came before Penske fired three of his most trusted executives following the Indy 500 scandal. At this juncture, a double blow, along with Honda’s imminent departure, seems more than likely.
In fact, a leading IndyCar veteran pointed out more reasons for Honda to cut ties.
The list grows longer
The HRC building is a hub of fine-tuned brilliance. It has become a one-stop shop for racing teams, housing comprehensive engine research and development operations. Not a speck of grease or oil can be found on its floors, as David Salters believes in fostering a “clinical and professional” environment. That is how Honda carried IndyCar to so many championships and victories. However, this habit of excellence may soon leave the sport. Along with the twin scandals and Roger Penske’s biased ownership, the promotion of an increasingly high number of races on the calendar (eight of the 17 in 2025) does not sit well with Honda. The Japanese brand also publicly called into question IndyCar’s lack of return on investment more than a year ago.
That is why Dan Towriss, TWG Motorsports CEO, who serves as the lead executive in charge of Andretti Global, confirmed his fears in May of Honda walking out. He said, “I think so, yeah. It seems like a real possibility. I hope it doesn’t happen, but I think it’s a real possibility.” He added that the combination of ROI concerns and independence conflicts might be the final nail in the coffin. “I think (Honda) has been vocal about costs, but then also just the ownership structure of the series…They may want to see independence in certain areas.”
Clearly, the alarm bells are ringing loudly for Roger Penske and his enterprise. As Honda’s stance unfolds, let us see where this story takes us.
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