The all-American sentiment is summed up in a few things. A classic muscle car racing down Route 66, a fiery backyard BBQ on July 4th, Friday night football under the lights, and the thrilling boom of stock cars rumbling around Daytona. Deeply ingrained in this culture, NASCAR has long served as a battlefield for all Americans. The history of NASCAR is steeped in American automotive innovation, from the heyday of Chrysler, Dodge, and Pontiac to the lasting contributions of Ford and Chevrolet. Since all but Toyota have been American-owned businesses thus far, the grid serves as a showcase for domestic competition. However, as the sport changes, so does the demand for new competitors.
All indications point to a brand that has already made an impact on international races, especially as rumors about a possible fourth OEM develop. Is Honda poised to become the next big name to change the NASCAR landscape?
Honda’s NASCAR risk: Steve Phelps Teases a Revolutionary Arrival
It looks like Honda and IndyCar’s long-standing partnership is coming to an end. The Japanese automaker may be heading to NASCAR next. “We’re in some discussions,” NASCAR President Steve Phelps stated in a recent interview, reiterating the sport’s efforts to bring in a fourth and potentially a fifth OEM. Although it takes a lot of labor, the main goal is to finish it. His remarks have rekindled rumors that Honda would be the newest manufacturer to join NASCAR.
Since 1994, Honda has been the engine of IndyCar teams, but growing financial issues might need a shift in strategy. The carmaker is a dominant power in open-wheel racing, providing over half of the 27-car grid, including 16–18 cars in the Indianapolis 500. However, keeping up this presence is expensive; annual costs can amount to eight figures. Honda’s exit from IndyCar appears more plausible in the absence of a defined cost-cutting strategy. When its engine contract expires in 2026, RACER writers recently reported that “Honda is nine toes out the door.” This is in spite of Roger Penske, the owner of IndyCar, trying to persuade them to stay. A major change in American racing would occur if Honda were to leave IndyCar and join NASCAR.
The Cup Series would become more competitive as a result of the shift. It will also provide NASCAR teams access to more money and sponsorship opportunities. Phelps highlighted a new OEM’s advantages. “They’ll come and advertise… talk about their brands… and promote drivers,” he said, highlighting the potential benefits of a Honda entry. However, it has been stated that Penske is not satisfied with the scenario because losing Honda would make IndyCar’s competitive structure weaker. However, if Honda joins NASCAR, we know one great who will be delighted. Yes, you guessed correctly! Jimmie Johnson, that’s our very own 2025 Daytona 500 podium finish. What about Penske, though?
Even if he is still optimistic about keeping the manufacturer, the increasing relationship between Honda and NASCAR indicates otherwise. Further rumors were stoked by NASCAR COO Steve O’Donnell’s earlier statement that negotiations were “heating up” with a possible new OEM. Honda seems to be considering every motorsport option available in the United States, so switching to NASCAR seems like a well-thought-out move. By making this change, the carmaker would diversify its racing offering. It will also put it in line with a sport that has a large following and is attractive to sponsors. All indications suggest that the world of stock car racing is about to undergo a significant upheaval, even though nothing is official yet.
A calculated financial move? An explanation of Honda’s NASCAR shift. As was previously mentioned, Honda is having financial difficulties in IndyCar. Its finances are being stretched by the high expenses of sustaining several teams and providing engines. The switch to NASCAR might offer a more profitable option. Most significantly, though, it can also yield a higher return on investment. According to a Cambridge study, this will be accomplished through more fan interaction and brand exposure. NASCAR sponsorship announcements have traditionally led to notable increases in shareholder wealth for sponsoring companies (including OEMs), according to The NASCAR Phenomenon: Auto Racing Sponsorships and Shareholder Wealth research. It’s more than $300 million on average.
This result emphasizes how strongly NASCAR sponsorships are supported by the market. According to the study, collaborations with prosperous racing teams increase the perceived success of sponsorships, which is consistent with the well-known 1960s and 1970s maxim “Win on Sunday, sell on Monday.” Beyond the figures, Honda’s involvement in NASCAR may improve its relationship with American customers. IndyCar lacks the distinct marketing advantage that NASCAR’s sizable and devoted fan base provides. Although IndyCar serves a specialized market, NASCAR’s mass appeal fits in nicely with Honda’s larger corporate objectives in the US auto industry. Steve Phelps added in an interview with Adam Stern that NASCAR has been in talks with many manufacturers about joining the Cup Series.
Steve Phelps, the president of NASCAR, also reiterated the group’s plans to add a fifth OEM. He clarified that the sport is constantly looking to increase the number of manufacturers it works with. Could now be the ideal time for the Japanese carmaker to make a historic move into stock car racing, given that NASCAR’s leadership is eager to draw in new brands and Honda is reassessing its prospects in IndyCar?
