Group Lotus CEO Dany Bahar announced at the Los Angeles Auto Show on Thursday that Lotus would build engines for the IZOD IndyCar Series’ new 2012 formula. Few details were revealed at the announcement, including who will design and build the engine, although Bahar’s comments suggest Lotus would do the work on its own without a partner like Cosworth.

“What we’re trying to do with the Lotus brand is leverage our heritage, which is all about motor racing,” he said. “We’re taking racing seriously. We don’t just want to put a sticker on a car that we did not have an interest in building. We want to fight with the big guys.

“We started this year with a very small activity with Takuma Sato in the KV Technology team. It was just one car to understand Indycar racing. It was an opportunity for us to become a real contender. The series is developing well and I think it fits perfectly with our abilities and strategy in the US, which is our biggest market.

“So we took the decision to build our own engine. By doing that we are going to be the underdogs fighting Chevy and Honda. But that’s fine. It’s all about competition.”

Bahar confirmed that Lotus would develop its own ‘aero kit’ for 2012. “We will be designing our own chassis and own aero kit,” he said. “We want to compete by designing our own cars and hope other teams can profit from our design. We’ve started already investing in developing the right aero kit and engine for 2012.”

Bahar also said that as many as four Indycars will run in Lotus colours next year. “We’ll be expanding our activities in IndyCar with our partner KV Technology. There will probably be three or even more cars in our livery.”

Kevin Kalkhoven owns the KV team with former driver Jimmy Vasser. He also owns Cosworth in partnership with Jerry Forsythe. Kalkhoven was conspicuous by his absence from Thursday’s Lotus engine announcement and did not respond to requests to comment on the news. So we await further details with interest.

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Last week I enjoyed a couple of days at Cosworth in order to write a story for the magazine about the company’s expansion in recent years into businesses beyond motor racing. Cosworth was bought from Ford six years ago by Kevin Kalkhoven and Jerry Forsythe and under CEO Tim Routsis’s leadership the renowned engine-building company has moved aggressively into many other non-racing businesses which now comprise three-quarters of Cosworth’s income.

Among other things Cosworth builds UAV engines and data loggers for the aerospace and defence industries, electronic data loggers for the marine and aircraft industries, monitoring systems for clean technology windmills, engines and tuning components for the road car industry and has expanded into many other areas of mechanical and electronic engineering.

Cosworth also returned to Formula One this year and has been quite successful with Williams who will continue to lead the company’s F1 attack next year. The people at Cosworth are proud that – with Williams at least – their latest F1 engine has proven itself competitive with the heavy hitters. They’re also proud that prior to next weekend’s inaugural Korean Grand Prix their V8 stands as the only engine in F1 with a perfect reliability record.

Cosworth intends to continue to compete in F1, but the focus for the future is on its diversification, which has made the Northamptonshire company infinitely more stable and profitable. CEO Routsis credits Cosworth’s racing success as the key to its expansion outside the sport.

“I think it would be true to say the brand name was pivotal in the success of the diversification of Cosworth,” Routsis remarked. “I would go as far as to say that if we had exactly the same people, skills and equipment but we hadn’t got the brand name from racing the story may well have had a different ending.

“I’m glad to say that by the end of 2007 we had got to a position of being able to win substantive multi-million pound orders in adjacent industries and by the end of 2008 the business was solidly profitable. By the end of 2009 it was completely debt-free and this year the business has doubled over the size it was this time last year. So it is a very counter-trend story in today’s economy.”

Routsis has no doubts that F1 and racing in general must adapt to the changing times both technically and economically. “In the longer term I think the sport has some challenges in front of it,” Routsis observed. “It has to address its perceived image of offensive excess in certain areas. That is certainly something that is recognised by the thinking people within the operations of Formula One. A huge amount of effort is being put in place to try and map out a future which preserves the things that are best about Formula One, but equally recognises that the world is a changing place and Formula One has to fit with the world. It cannot take a risk of becoming anachronistic because if it does it won’t have a future.

“Our expectation is that we will be present in the sport in 2013 – when the new engine regulations come in – as providers of an entire powertrain. We will expand away from the traditional areas of just providing the internal combustion engine. What’s very clear is if you look at the technology road maps both in sport and automotive, powertrains are going to be about much more than just the internal combustion engine. That’s where Cosworth is going to be positioning itself in both the sport and the premium performance, low-volume automotive market.”

Over the past five years Cosworth has adapted superbly to the changing world. Here’s hoping F1 and motor sport in general can learn from Cosworth’s successful transformation.

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Last week, following Graham Rahal’s (above) inspired victory in his first IRL race in the streets of St Petersburg, team owner Carl Haas (below) was in the best spirits he’s been in for months. Like all the former Champ Car teams, Newman/Haas/Lanigan has been up to its elbows in a serious thrash over the past two months re-building old Dallara-Hondas or building new cars from parts. So it was particularly sweet for Champ Car’s most successful team to win in St Pete with its talented, teen-aged driver.

“Graham did a tremendous job and Justin (Wilson) (below) was very quick,” Haas said. “Justin had a real chance to win the thing, but he caught-out by the yellows and the pit strategy. It’s too bad because he was very quick.

“It was great for the team because everyone has really worked their tails off,” Haas added. “But there’s a lot to do. We’ve got two more cars to build before Indy next month and it’s going to be tough on the ovals. The top guys have got five or six years of running on us. It’s good to know we can run strong with these cars on a street circuit, but the ovals are completely different. We don’t have any data or information to work from.”

Haas said everyone in his team is delighted to be part of the IRL’s unified Indycar series. “It’s been very, very difficult for the teams from Champ Car to make the change in such a short period of time,” Haas acknowledged. “But people are really loving the fact that it’s just one series and we’re all racing together again. I think it’s going to be a lot better for Indycar racing. There was so much confusion. Nobody knew who was what and the whole thing lost all its identity. This unification had to happen and it’s going to be a good thing for the sport.”

But Haas has his reservations about next weekend’s Long Beach GP where the former Champ Car teams will give their Panoz-Cosworths one last hurrah while the IRL regulars are racing at Motegi in Japan. “I hope Long Beach works out,” Haas remarked. “It’s a terrible way to have to do it and I’m not sure how the people – the fans – are going to feel about it.”

We were assured last week that twenty cars will be on the grid at Long Beach, including former winner Jimmy Vasser. But four-time Long Beach winner Paul Tracy apparently will not be in the field as he struggles to resolve his contract dispute with Jerry Forsythe.

“As far as I know, I’m not driving,” Tracy said. “I’ve told the team that I’m more than happy to do Long Beach, but they don’t want to acknowledge there’s a termination clause in the contract. Nobody has told me anything.”

As Carl Haas says, it will be interesting to see how the fans react to Champ Car’s swansong in the streets of Long Beach next weekend.

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The first unified Indycar race of the 21st century took place last Saturday night before a modest crowd at the Homestead-Miami Speedway. There were many good things to see, including a fierce battle at the front and watching Marco Andretti drive such a strong race on a track where he has fared poorly in the past. In the end, Scott Dixon (below) showed that he and Chip Ganassi’s team will once again be serious championship contenders by taking pole and coming through to win the race with a near-perfect performance after Tony Kanaan ran out of luck in the closing laps. It was also clear that the IRL continues to be all about its three big teams – Ganassi, Andretti-Green and Penske, who entirely dominated the evening.

The tough task facing the former Champ Car teams was made equally clear. French rookie Franck Perera (below) was the fastest of this group, qualifying 15th on his debut with Eric Bachelart’s Conquest team, while Oriol Servia was the best finisher in 12th place, five laps down. Perera finished 14th, six laps down, while Justin Wilson was 15th and seven laps back in his first race with Newman/Haas/Lanigan.

These guys are expected to be in better shape on the St Petersburg street circuit this weekend, but let’s not forget that the top IRL teams have spent years and many millions of dollars in the wind tunnel and elsewhere developing, testing, understanding and dialling in these cars. With limited resources, minimal testing and a brief switch back to their Panoz DP01s for Long Beach before the long month of May in Indianapolis followed by 12 races in 15 weeks, the ex-Champ Car teams face a long and challenging season.

So after all the anticipation and white heat surrounding the unification of Indycar racing we are faced with the realisation that nothing much has changed. Ganassi, Andretti-Green and Penske are clearly on top of a spec-car series with little emotional appeal that is filled with largely faceless drivers. There are few names, no superstars, and the only notable blip the series might enjoy is if Marco Andretti were to win a string of races and challenge for the championship. And, of course, the former Champ Car teams face an embarrassing struggle, which is not likely to improve their hopes of selling any serious sponsorship, nor encourage long-suffering Champ Car fans to turn out to support them.

And what about Paul Tracy (below)? It’s ridiculous that he’s not in the field. He’s the biggest draw by far, the only guy with a real persona and a predilection to speak his mind. He may be near the end of his career on street circuits and some road courses, but like any driver he’ll continue to cut the mustard on ovals well into his forties. Let’s not forget some of Paul’s ferocious recent performances at Milwaukee in Champ Car’s final years at the venerable track, when he showed everyone what it’s all about with some superbly aggressive outside passes.

As Tracy says, he would love to go back to Indianapolis with a properly competitive car and team to attempt to avenge his loss there in 2003. With the right car, Tracy would bring some flavour and excitement to the Indy 500 that it hasn’t enjoyed in many years. But right now he’s sidelined as his lawyers try to find a way to buy Tracy out of his contract with Jerry Forsythe, who has decided not to run his team in the unified IRL series. In the meantime, the 39-year-old Canadian is a pedestrian.

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It was sad to talk last week with each of Derrick Walker (above), Paul Tracy (below) and Carl Haas. All three had tales of woe to tell about how the fallout from Champ Car’s demise has affected them. Walker’s team finds itself without the sponsorship to be able to race in this year’s unified IRL series, Tracy is out of a ride and has no idea what or even if he will race this year, and Haas admits to losing a pile of money on his investment in Panoz DP01 parts and equipment.

As everyone knows, Walker has lost his sponsor and driver Will Power to the renamed KV Racing Technology team and is going to court to attempt to get some restitution from Craig Gore. Walker has not laid-off any employees and will run three Atlantic cars this year but he’s looking at diversifying into the A1GP series or sports car racing or any other sensible form of motor sport that will pay the bills.

Meanwhile, Paul Tracy awaits word from Jerry Forsythe about how Tracy might buy his way out of his multi-year contract or find some other resolution to his dilemma. At the moment Tracy is a pedestrian, without a ride in the IRL. He’s assuming, but doesn’t know if he’ll race at Long Beach. “I feel like I’m standing on the platform and the train’s driving off,” Tracy remarked. “I feel like the guy who got a new suit for the big date and I’m primed and ready for the prom, and she didn’t show up.”

And then there’s Carl Haas (above), a proud man who, with his partner Paul Newman, built one of America’s most accomplished and respected race teams. Over half a century Haas has made his living entirely from racing, selling cars, parts and service to all kinds of formulas and categories. Haas admitted last week that he has lost more than two millions dollars on his investment in Champ Car’s failed Panoz spec-car project. Like Walker, Haas has remained loyal to his people and he has not laid-off any employees.

The good news is that Cristiano da Matta (above) enjoyed a very good first run in a race car last week since his near-fatal accident at Elkhart Lake in the summer of 2006. Da Matta tested one of Bob Stallings’ Gainsco Riley-Pontiac Grand-Am cars at the new 2.5-mile Eagles Canyon road circuit in Texas and after two days and around 140 laps Cristiano was bubbling with enthusiasm. Da Matta will make his return to racing at Laguna Seca in May, driving a second Stallings’ Grand-Am car beside series champions Alex Gurney and Jon Fogarty. Da Matta will share his car with old friend and former team-mate Jimmy Vasser.

“It will be a good way to get back,” da Matta remarked. “I won’t be able to fight for the championship this year, but just to get back to it and next year be serious about the job of going for the championship, it’s very exciting. And to do it with Jimmy who is not only a very good driver but also a very good friend of mine – and he’s also very fired-up about it – it’s like a dream.”

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