Lotus's foray in Indycar going from bad to worse
Discussion
Lotus started the season supplying 4 teams with the new for 2012 twin turbo V6 engines. Dreyer & Reinbold, HVM, Barracuda and Dragon Racing. Lotus released Barracuda and Dreyer & Reinbold from their engine contracts last month due to supply problems (we were told) so that they could supply the remaining 2 teams with enough engines. It was rushed engine project, less time to get it all together than Chevrolet and Honda.
But now it might be down to 1 team as Dragon Racing have filed legal papers citing Lotus of contractual fraud........whoops....
But now it might be down to 1 team as Dragon Racing have filed legal papers citing Lotus of contractual fraud........whoops....
Crash.net said:
Just when it seemed that the crisis situation surrounding Lotus' involvement in the IZOD IndyCar Series was calming down come reports that Dragon Racing is launching legal action against the engine manufacturer for "contractual fraud".
According to multiple reports in the media, Jay Penske's team has filed a lawsuit in California where Dragon Racing is headquartered. The case number BC484135 was filed with a Los Angeles court, citing breach of contract.
The latest reports say that Dragon Racing has already returned all its Lotus engines and related equipment and will no longer be using Lotus engines with immediate effect.
It's not clear at this point what the exact grounds for the legal action are, but first reports of the suit suggest that Dragon is alleging that Lotus failed to deliver either of the two Dallara chassis that it was supposed to purchase for the team, leaving the team itself to pay out the "roughly $400,000" per DW12.
One report quotes the lawsuit as adding: "Put simply, Dragon has had enough of Lotus' deceit and wrongdoing. Dragon has put an end to its ill-fated relationship with Lotus and now seeks recompense for the damages inflicted upon it."
There had been apparent disagreement between Dragon and Lotus ahead of the first race of the season. The engine for Sebastien Bourdais' car arrive only the night before track activity started for the 2012 Honda Grand Prix of St Petersburg, in a disagreement over what contracts had been signed and when. Lotus' inability to manufacturer sufficient engines in time to allow its teams to participate in the sole series test at Indianapolis last month is another major factor affecting the company's relationship with its IndyCar partners.
Lotus announced at the end of last month that they had agreed to release two of their four full-time teams, Bryan Herta Autosport and Dreyer & Reinbold Racing, ahead of the Indianapolis 500. Both teams are yet to formally announce replacement engine deals with either of Lotus' rivals, Honda and Chevrolet, although deals are said to be close with BHA joining Honda and DRR set for Chevy engines.
At the time, Lotus said that this would enable them to focus resources on supporting its remaining teams, Dragon and HVM Racing. The IndyCar Series also subsequently enacted a new rule to prevent any further changes in engine supply deals during a season with effect from April 30, except in extra-ordinary circumstances and with the series organisers' right of sign-off.
Presumably, a lawsuit would qualify as extra-ordinary circumstances; and the series organisers will be under pressure to allow Dragon to sign up with a new manufacturer, or they face falling well short of a full 33-car grid at the Indianapolis 500 on May 27 - which would be acutely embarrassing for the sport.
Given the strong relationship between Jay Penske's father Roger and the Chevrolet marque, it's expected that Dragon should find a new slot as part of the bow tie brigade, but time is critically short for them to do so as Opening Day at Indianapolis Motor Speedway is just five days away on Saturday.
Roger Penske is quoted by SPEED.com as saying that he understands negotiations are underway between his son and General Motors, but that he himself has not been a party to them. "I want to see him in the race," the senior Penske is quoted as saying. "He's got a helluva driver in Bourdais."
Indeed, Bourdais' performances have been almost the only shining light for Lotus since their late entry into the IndyCar engine supply scene, with his nine place at the Honda Indy Grand Prix of Alabama the best result of any Lotus-powered car in 2012.
Losing Dragon from their line-up will leave Lotus with only one car in the series - HVM Racing's car driven by Simona de Silvestro - and almost certainly no longer a commercially viable operation.
An announcement about Lotus fielding Jean Alesi in the Indy 500 through a one-off deal with a Firestone Indy Lights team is also said to be on the verge of being formally announced later today.
Edited with correct story this time According to multiple reports in the media, Jay Penske's team has filed a lawsuit in California where Dragon Racing is headquartered. The case number BC484135 was filed with a Los Angeles court, citing breach of contract.
The latest reports say that Dragon Racing has already returned all its Lotus engines and related equipment and will no longer be using Lotus engines with immediate effect.
It's not clear at this point what the exact grounds for the legal action are, but first reports of the suit suggest that Dragon is alleging that Lotus failed to deliver either of the two Dallara chassis that it was supposed to purchase for the team, leaving the team itself to pay out the "roughly $400,000" per DW12.
One report quotes the lawsuit as adding: "Put simply, Dragon has had enough of Lotus' deceit and wrongdoing. Dragon has put an end to its ill-fated relationship with Lotus and now seeks recompense for the damages inflicted upon it."
There had been apparent disagreement between Dragon and Lotus ahead of the first race of the season. The engine for Sebastien Bourdais' car arrive only the night before track activity started for the 2012 Honda Grand Prix of St Petersburg, in a disagreement over what contracts had been signed and when. Lotus' inability to manufacturer sufficient engines in time to allow its teams to participate in the sole series test at Indianapolis last month is another major factor affecting the company's relationship with its IndyCar partners.
Lotus announced at the end of last month that they had agreed to release two of their four full-time teams, Bryan Herta Autosport and Dreyer & Reinbold Racing, ahead of the Indianapolis 500. Both teams are yet to formally announce replacement engine deals with either of Lotus' rivals, Honda and Chevrolet, although deals are said to be close with BHA joining Honda and DRR set for Chevy engines.
At the time, Lotus said that this would enable them to focus resources on supporting its remaining teams, Dragon and HVM Racing. The IndyCar Series also subsequently enacted a new rule to prevent any further changes in engine supply deals during a season with effect from April 30, except in extra-ordinary circumstances and with the series organisers' right of sign-off.
Presumably, a lawsuit would qualify as extra-ordinary circumstances; and the series organisers will be under pressure to allow Dragon to sign up with a new manufacturer, or they face falling well short of a full 33-car grid at the Indianapolis 500 on May 27 - which would be acutely embarrassing for the sport.
Given the strong relationship between Jay Penske's father Roger and the Chevrolet marque, it's expected that Dragon should find a new slot as part of the bow tie brigade, but time is critically short for them to do so as Opening Day at Indianapolis Motor Speedway is just five days away on Saturday.
Roger Penske is quoted by SPEED.com as saying that he understands negotiations are underway between his son and General Motors, but that he himself has not been a party to them. "I want to see him in the race," the senior Penske is quoted as saying. "He's got a helluva driver in Bourdais."
Indeed, Bourdais' performances have been almost the only shining light for Lotus since their late entry into the IndyCar engine supply scene, with his nine place at the Honda Indy Grand Prix of Alabama the best result of any Lotus-powered car in 2012.
Losing Dragon from their line-up will leave Lotus with only one car in the series - HVM Racing's car driven by Simona de Silvestro - and almost certainly no longer a commercially viable operation.
An announcement about Lotus fielding Jean Alesi in the Indy 500 through a one-off deal with a Firestone Indy Lights team is also said to be on the verge of being formally announced later today.
Edited by FourWheelDrift on Monday 7th May 22:46
Clusterf*ck all round really isn't it? I guess you could view it as "no such thing as bad publicity" for the series, as God knows they need the coverage, but it's a shame to see the Lotus name being dragged through the mud, especially on the verge of the 500. On the plus side, assuming Chevy can step up and supply them, Bourdais could be one to watch for the rest of the season.
PW said:
False rumour #6: Clusterf*ck all round really isn't it?
Fact: Rubbish. Lotus really focusing hard on strengthening it's position. Without the distraction of supplying customers with a sufficient number of reliable, competitive engines, Lotus can commit its resources fully to its core motorsport programme of handing out tins of black & gold paint.
Fact: Rubbish. Lotus really focusing hard on strengthening it's position. Without the distraction of supplying customers with a sufficient number of reliable, competitive engines, Lotus can commit its resources fully to its core motorsport programme of handing out tins of black & gold paint.
PW said:
False rumour #6: Clusterf*ck all round really isn't it?
Fact: Rubbish. Lotus really focusing hard on strengthening it's position. Without the distraction of supplying customers with a sufficient number of reliable, competitive engines, Lotus can commit its resources fully to its core motorsport programme of handing out tins of black & gold paint.
SuperbFact: Rubbish. Lotus really focusing hard on strengthening it's position. Without the distraction of supplying customers with a sufficient number of reliable, competitive engines, Lotus can commit its resources fully to its core motorsport programme of handing out tins of black & gold paint.
PW said:
Fact: Rubbish. Lotus really focusing hard on strengthening it's position. Without the distraction of supplying customers with a sufficient number of reliable, competitive engines, Lotus can commit its resources fully to its core motorsport programme of handing out tins of black & gold paint.
PW said:
If there are problems with Judd, Lotus should put in the resources to make sure those problems are overcome and their obligations are met.
i suspect a major falling out with Judd and Lotus. i don't know Judd's side of the story but i know people high up at lotus are very embarassed and highly regret the decision to use Judd as a partner. PW said:
wildman0609 said:
i suspect a major falling out with Judd and Lotus.
I'm not an expert - i'm just reading the articles with a vague sense of disbelief.Whatever Judd have done wrong, doesn't change any of what Lotus have been saying in the press about the situation, and doesn't have much to do with Lotus not buying Dragon the Chassis they were supposed to. If it isn't their fault, they are certainly doing a great job of making it look like it is!
Scuffers said:
as I understand it, the 'problem' for Judd is getting paid.
I did wonder if that might be the case. Especially with the funding freeze during the drb-hicom takeover. If the root of the problem was with Judd, I'm sure it would've been mentioned in a (remarkably infantile) Lotus press release.Gassing Station | General Motorsport | Top of Page | What's New | My Stuff