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Penske, DXC Technology continue on Pagenaud’s IndyCar

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Team Penske and DXC Technology will renew their partnership for the 2018 Verizon IndyCar Series season. DXC joined Penske in 2017, serving as a primary sponsor for six races on Simon Pagenaud’s No. 1 Team Penske Chevrolet.

In re-upping with Penske, DXC will again adorn Pagenaud’s entry – switching back to the No. 22 in 2018, with teammate Josef Newgarden carrying the champion’s No. 1 – for six races, the first being the Toyota Grand Prix of Long Beach in April.

“Team Penske is excited to grow the partnership with DXC Technology for 2018,” said team owner Roger Penske via a release. “This is a technology-dependent sport and we were able to integrate DXC into our INDYCAR program this season and we will be ready to take our performance, and hopefully our results, to the next level with them in 2018.”

Pagenaud echoed Penske’s sentiments, adding that team and sponsor share a common philosophy that drives them forward. ““I enjoyed working with DXC Technology and representing their brand this past season. DXC Technology shares a similar philosophy with us at Team Penske, which is to strive for excellence. We are very proud to work together relentlessly toward further limits in our respective industries. We were excited to get a win with them in Sonoma and everyone at Team Penske wants to build on that as we welcome them back for 2018.”

DXC president, chairman, and CEO Mike Lawrie also highlighted Penske’s reputation as a point of interest to continue their partnership.

“Our partnership with Team Penske provides a great opportunity for DXC Technology,” said Lawrie. “Performance and reputation make Team Penske the type of organization with which we want to align. Like us, they strive for excellence in everything they do and work diligently to provide value for both sides of the relationship.”

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The DXC partnership extension is one of several Team Penske has announced in recent weeks, which are as follows on the IndyCar program:

  • REV Group, a leading manufacturer of specialty vehicle brands serving the commercial, fire and emergency and recreational markets, will continue as a full-season associate sponsor on the No. 1 of Josef Newgarden and the No. 3 of Helio Castroneves during the 102nd running of the Indianapolis 500 during the month of May.
  • Fitzgerald Glider Kits, North America’s leading truck glider kit assembler, will also continue as an associate sponsor with a presence on Newgarden’s No. 1 Chevrolet throughout next season.
  • Miller Lite, Discount Tire, Alliance Truck Parts, Wurth Group and Auto Club of Southern California and AAA have extended with Team Penske’s NASCAR programs.

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Street race in Vietnam could lead Formula One’s Asia expansion

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TOKYO (AP) — Formula One is expected to add more races in Asia, including a street circuit in the capital of Vietnam, a country with little auto racing history that is on the verge of getting a marquee event.

“We think Hanoi could come on in the next couple of years, and we’re working with the Hanoi government to that end,” Sean Bratches, Formula One’s managing director of commercial operations, told the Associated Press.

There is even speculation it could be on the schedule next season, which Bratches rebuffed.

Vietnam would join countries like Azerbaijan, Russia and Bahrain, which have Grand Prix races, little history in the sport, and authoritarian governments with deep pockets that serve F1 as it tries to expand into new markets.

“This (Hanoi) is a street race where we can go downtown, where we can activate a large fan base,” Bratches said. “And you have extraordinary iconography from a television standpoint.”

A second race in China is also likely and would join Shanghai on the F1 calendar. Bratches said deciding where to stage the GP will “be left to local Chinese partners” – Beijing is a strong candidate.

Bratches runs the commercial side of Formula One, which was acquired last year by U.S.-based Liberty Media from long-time operator Bernie Ecclestone.

Formula One’s long-term goal is to have 24-25 races – up from the present 21 – and arrange them in three geographical segments: Asia, Europe and the Americas. Bratches said the Europe-based races would stay in middle of the calendar, with Asia or the Americas opening or ending the season.

He said their positioning had not been decided, and getting this done will be slowed by current contracts that mandate specific places on the calendar for several races. This means eventually that all the races in Asia would be run together, as would races in Europe and the Americas.

The F1 schedule is now an inefficient jumble, allowing Bratches to take a good-natured poke at how the sport was run under Ecclestone.

“We’ve acquired an undermanaged asset that’s 67-years-old, but effectively a start-up,” Bratches said.

Early-season races in Australia and China this year were conducted either side of a trip to Bahrain in the Middle East. Late in the season Formula One returns to Asia with races in Japan and Singapore.

The Canadian GP this season is run in the middle of the European swing, separated by four months from the other races in the Americas – the United States, Mexico and Brazil. These three are followed by the season-ending race in Abu Dhabi, which means another trip across the globe.

“With the right economics, with the right structure and cadence of events across territories, 24 or 25 is probably where we’d like to be from a longer-term standpoint,” Bratches said.

Big changes are not likely to happen until the 2020 season ends. This is when many current rules and contracts expire as F1’s new owners try to redistribute some income to allow smaller teams to compete.

“There’s more interest than we have capacity in the schedule,” Bratches said, firing off Berlin, Paris or London as potentially attractive venues. “We want to be very selective.”

“Those cites from an economic impact standpoint would find us value, as do others around the world,” Bratches added. “It’s very important for us as we move forward to go to locations that are a credit to the Formula One brand.”

An expanded schedule would have to be approved by the teams, which will be stretched by the travel and the wear-and-tear on their crews. The burden will fall on the smaller teams, which have significantly smaller revenue compared with Ferrari, Mercedes or Red Bull.

Bratches also envisions another race in the U.S., joining the United States Grand Prix held annually in Austin, Texas. A street race in Miami is a strong candidate, as are possible venues like Las Vegas or New York.

“We see the United States and China as countries that could support two races,” he said.

Liberty Media has reported Formula One’s total annual revenue at $1.8 billion, generated by fees paid by promoters, broadcast rights, advertising and sponsorship. Race promotion fees also tend to be higher in Asia, which makes the area attractive – along with a largely untapped fan base.

In a four-year cycle, F1 generates more revenue than FIFA or the International Olympic Committee, which rely almost entirely on one-time showcase events.

Reports suggest Vietnamese promoters may pay between $50-60 million annually as a race fee, with those fees paid by the government. Bratches said 19 of 21 Formula One races are supported by government payments.

“The race promotion fee being derived from the government … is a model that has worked historically,” Bratches said.