Desperate not to lose Honda, Penske throws them a bone

In the cutthroat arena of American open-wheel racing, Roger Penske’s latest gambit to dangle charters in front of Honda and Chevrolet smacks of a high-stakes poker bluff—equal parts savvy and sheer panic.

–by Mark Cipolloni–

As the owner of IndyCar, Penske is staring down the barrel of a potential exodus by one of his two engine suppliers, and let’s be real: offering “factory team” status via charters isn’t just an incentive; it’s a desperate lifeline to keep Honda from bolting to NASCAR’s bigger, brasher circus.

With Honda’s contract expiring at the end of 2026, and whispers of a NASCAR switch growing louder, this move underscores how fragile IndyCar’s ecosystem truly is. In my view, it’s a smart pivot, but one that reveals deeper cracks in the series’ foundation.

Let’s rewind to the facts fueling this frenzy. Honda, the $115 billion behemoth that’s powered IndyCar engines since 2003, has been vocal about its gripes: ballooning costs, underwhelming returns on investment, and a stifling two-manufacturer duopoly that limits innovation and excitement.

Add in the PR headaches from Penske’s own team scandals—like the 2024 push-to-pass fiasco and the 2025 rear attenuator drama right before Indy 500 qualifying—and it’s no wonder Honda Racing’s David Salters quipped, “Having that in the background is not helpful, is it?” President Toshihiro Mibe has played coy, praising the series while dodging firm commitments, all while eyeing NASCAR’s massive U.S. audience and global buzz. Rumors of Honda jumping ship aren’t new; they’ve simmered since at least 2024, with speculation about potential NASCAR partnerships heating up as the sport evolves its team charts for 2026 and beyond.

Enter Penske’s pre-Christmas Hail Mary in December 2025: proposing charters specifically for Chevrolet and Honda, allowing them to morph into bona fide factory teams. Modeled after NASCAR’s system but tailored for IndyCar, these charters guarantee race entries (Indy 500 excepted), can be sold as assets, and empower OEMs to run single-car programs—either solo or via existing teams.

Upon departure, they’d sell back to Penske at market value, not to rivals. Journalist Adam Stern nailed it on X: this is IndyCar’s bid to lock in the manufacturers past 2026, potentially reviving the glory of CART-era factory squads. Negotiations are in the homestretch, including bridge engines for 2027 and fresh 2.4-liter twin-turbo V6s by 2028.

This is brilliance wrapped in desperation. Penske, the eternal empire-builder, knows losing Honda would doom IndyCar to a Chevy monopoly, sapping competition and sponsor appeal. Charters could inject equity, giving OEMs skin in the game and a seat at the strategy table—think joint powwows with team owners. It builds on IndyCar’s 2024 charter rollout to 10 teams for up to 25 entries over a decade, and pairs nicely with the July 2025 Fox Corporation stake sale to amp up promotion.

But here’s the rub: it reeks of reactive patching rather than visionary growth. Why not court more manufacturers earlier? Toyota’s been MIA since 2005, and others like Ford have snubbed invites. NASCAR’s allure—bigger crowds, more races, and evolving manufacturer shifts like teams ditching Ford for 2026—makes IndyCar look like the underdog begging for scraps.

And let’s not gloss over the elephant in the garage: if these engine manufacturers field their own factory teams, there’s no question they’ll hold an unfair advantage over customer squads. Perhaps it’s inevitable—deeper pockets for R&D, direct access to proprietary tech, and prioritized engine tweaks could tilt the scales, echoing the dominance of factory-backed outfits in other series. It might boost spectacle, but at the cost of parity, potentially alienating independent teams who rely on off-the-shelf powerplants. Penske’s plan could inadvertently create a two-tier system, where factories feast while customers scramble for crumbs.

If Honda bites, it could stabilize the grid, maybe even expand it, though skeptics worry about squeezing full-time entries from 27. Reject it, and IndyCar risks a solo-engine era that could alienate fans and drivers alike. Penske’s betting big on heritage—the Indy 500’s unmatched prestige—but in a motorsport world tilting toward stock cars, this charter olive branch might just be the spark IndyCar needs. Or, it could highlight how far the series has fallen since its heyday. Either way, as we hurtle toward 2027, keep your eyes on Honda: their decision could redefine American racing.