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BAR 'lands Honda engine deal'

British American Racing will use Honda engines next year.

According to top-level insiders the terms of the deal have already been
agreed and that Jordan will also be allowed to have a supply of
Honda-built engines.

This suggests that Honda could quit plans to run its own team in 2000,
especially as the company board seems unwilling to spend the £125
million the R&D department had asked for.

However, the Honda team in the UK insists its project is going ahead,
despite the death of project leader Harvey Postlethwaite two weeks ago.

At present it is not known whether BAR will have to pay for their Honda
engines, nor whether Jordan's arrangement will be a works deal or a
continuation of its customer deal with sister company, Mugen.

In the meantime Honda representatives are due to meet Bernie Ecclestone
this week.

But should they tell Ecclestone that they intend to withdraw plans to
run its own team, they could face some hostility.

Ecclestone and the teams agreed to leave the 12th team slot open for
Honda. If it decides not to take it, teams would lose the immediate
chance to make money by selling out to Toyota, which is planning to
enter F1 in 2001 purely to rival Honda.

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