IndyCar, Dallara reach cost cutting agreement

The IZOD IndyCar Series has reached an agreement with Dallara that will reduce costs for its teams.

The deal sees an extension of a parts reduction initiative until March 15, 2014. Dallara in 2012 agreed to reduce the cost of parts by 14 percent through the end of the 2013 season, so that deal runs another six months to get teams prepared for the 2014 season. According to IndyCar officials, the savings will be about $50,000 per full-season entry, or about 1 percent in a $5 million budget.

As for the more expensive DW12 chassis, the cost of the parts was a subject of dispute between team owners and IndyCar and led to Randy Bernard’s demise as CEO. In an further effort to help teams save money, IndyCar is also reducing the number of test days.
Preseason testing is therefore cut from six days to two, and engine manufacturers are being held to two such tests before the first race in St. Petersburg, Florida, on March 24. Another measure being taken is the cutting in half of tire allotments for these tests.

Teams have been unhappy with the running costs of the new car that was introduced at the start of the 2012 season, claiming their running costs jumped by a much as 40 percent in the first year.