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Honda warns IndyCar that it could leave if costs don't come down by 2026

JHby:Jonathan Howard12/09/23

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Honda IndyCar Romain Grosjean
James Simpson II / USA TODAY NETWORK

While things in motorsports seem to be improving across the board, Honda has a warning for IndyCar to bring down costs, or else. Lowering costs in motorsports is one of the hardest things to do. NASCAR, IndyCar, F1 – all would love to make racing cheaper, but it just isn’t a cheap sport.

Honda and Chevy are the only engine suppliers in IndyCar right now. Dallara provides the chassis for the teams. So, it isn’t like there is a lot of competition going on here. That means costs are going to be higher as all the teams are supplied by just a limited group of suppliers.

In a conversation with RACER Mag, American Honda Motorsports Manager Chuck Schifsky laid out a dire warning for the sport.

“We have great concerns over the costs,” Shifsky said. “If we were to choose not to renew, that would be the reason why. And it’s easy to see. We don’t have a third manufacturer, and there’s a reason for that: It has to do with the cost. If the return on investment matched up with the investment, we’d have a number of other manufacturers involved.”

Honda has almost been in IndyCar for 30 years, joining in 1994. The current agreement with IndyCar has Honda producing engines through 2026. Amid issues debuting the hybrid engine, which won’t happen until after the Indy 500 in 2024, things don’t feel too great for the sport.

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Honda could ditch IndyCar for NASCAR, F1

When it comes down to it, Honda wants to see more money in their pockets. Teams want more money. So, how do you make that happen? The viewership for IndyCar is not what it used to be. In terms of American viewers, it still edges out F1, but falls short to NASCAR each year.

Speaking of F1 and NASCAR, Honda could take their money to those series. This is very interesting coming from Shifsky, as you rarely hear a manufacturer representative, not already in NASCAR, talk about joining up. Maybe Steve Phelps is attracting new OEMs?

“We’re looking for a wholesale change to the engine regulations so that we can eliminate fives and tens of millions of dollars of annual technical costs,” Schifsky said. “Because if we don’t, then it’s too much money, and we will go do something else. That something else could be NASCAR, or a further investment in our Formula 1 effort. Or something that isn’t motorsports at all.”

For Shifsky, Honda would like to see IndyCar end up more like IMSA. There are almost two dozen OEMs and it is rumored to be growing. Shifsky says “the costs match the value” in that series.

So, what can IndyCar do to keep Honda and Chevy happy past 2026?