APRIL 25, 2002
Jordan looking for new engine partner
EDDIE JORDAN won't be admitting for it for some months, but we hear from the industry that he is already putting out feelers to car companies hoping to find an engine deal for the future. Jordan's deal with Honda has a series of options in it and it is expected that Honda is going to terminate the agreement and offer Jordan a deal for Mugen to prepare engines for him. This is an option for the future - but Jordan will have to pay and so he is looking around to see if there is any potential from other engine manufacturers.
The Jordan deal was always a contentious one in Japan and was engineered by former Honda boss Nobuhiko Kawamoto and his supporters within the firm. They are now much less powerful than was the case two years ago and the feeling within Honda is that it would be best to concentrate on one team - British American Racing.
The current restructuring at Jordan Grand Prix is a clear sign that Jordan has decided that budgets must be slashed this year so that the company avoids incurring big debts. Our sources say that the team was looking at a shortfall in its budget of $18m but there is no way to verify this figure.
We hear from insiders that the original plan was for Jordan and his partners to underwrite any losses this year but they have now decided not to do that and have decided to cut back instead. As part of the pruning the Jordan test team and testing program have been seriously hit and this will inevitably mean that progress will slow as the season progresses.
It is this move which is believed to have caused some of the management to decide that there is not much point in continuing.
|Print News Story|