How Honda could supply a second F1 team

When Honda reformed its alliance with McLaren ahead of the 2015 Formula 1 season, an agreement was made whereby both parties had to approve if the Japanese manufacturer would supply a second team.

Initially, there was no real interest from either side to do so given Honda's struggles for performance and reliability in the first season. McLaren wanted to be the sole focus while Honda got on top of its problems, and Honda didn't want to consider stretching itself until it had its foundations in place.

When Red Bull needed an engine for 2016, having fallen out with Renault, then-McLaren Technology Group CEO Ron Dennis blocked a potential deal for Honda to step in. He said McLaren didn't want to put more pressure on the supply system and make Honda's problems worse.

He later went further and said only once McLaren-Honda had won the world championship would Honda think about supplying a second team.

But since then, the regulations have changed (and Dennis has been removed from power at McLaren). The FIA can now compel the manufacturer with the fewest customers to supply a team that needs an engine.

At this stage, that supplier would be Honda. However, it should be noted we've yet to see this rule in action, as every team was able to sort its own engine deal out for 2017.

It would be fair to say Honda wasn't particularly enthralled by the prospect of being "forced" to offer a supply, particularly as at the time of the regulation being introduced, it didn't feel its performance was competitive enough to do so. But even then, it said it would abide by the regulations should a request be made. It respected its duty to F1.

Since then, Honda's performance has improved, so has its view on taking on a second team. The same can be said of McLaren, which feels more comfortable with the progress that has been made by Honda, though it continues to push its partner hard.

This summer Honda accelerated its preparations, expanding its Milton Keynes base to provide the space to accommodate a second team. So if a request was made, Honda has the facility with which to deal with it. It should be noted that for now, it's only interested in one customer.

Honda chief Yusuke Hasegawa says that decision to supply for 2018 must be made by next May in order for the outfit to get everything in place. "That is the latest timing for us," he told Autosport. "That's when Red Bull and Toro Rosso announced they would use the Renault engine [for 2017]. But the earlier we know, the better."

Honda has had interest from rival teams following its upsurge in form this year. Hasegawa insists that interest has been informal, and it appears a deal for supply has yet to be signed, but it is gearing up to take on one more team in 2018. The question is - which one?

Mercedes, Ferrari, and Renault's factory teams are ruled out for obvious reasons and McLaren already has its Honda works deal. Earlier this year, Red Bull and Toro Rosso signed deals with Renault, which take both teams up until the end of 2018.

Williams and Force India are believed to have long-term arrangements with Mercedes. Haas has its technical partnership with Ferrari, which includes a supply of the latest specification of engine, and at this stage both parties see that as a long-term solution.

That just leaves Sauber and Manor. It is believed the former is keen on a deal, with its Ferrari contract understood to be concluding at the end of 2017.

The Swiss team has had a long-term partnership with Ferrari. Its current deal started in 2010 when it recovered from the withdrawal of BMW at short notice, but prior to the German manufacturer's arrival for 2006 it enjoyed a close relationship with Maranello that dated back to 1997. However in recent months, cracks have begun to appear in the relationship. Sauber is ready for a change. And that change can be Honda.

The deal would make sense for all three parties (McLaren is included, of course), particularly as a long-term arrangement would give stability.

Sauber would break free from a partnership that it was growing frustrated with, given the level of performance and unreliability of its Ferrari power units this season.

The Swiss team will gain from taking on a manufacturer that is hungry to succeed and appears to be going in the right direction in terms of development and performance.

With Haas developing increasingly strong ties with Ferrari, Sauber is down to third in that pecking order. It would be second should it join forces with Honda.

McLaren will likely be undeterred given it will not see Sauber as a serious threat to its ambitions to once again become a race winner and title contender. A Red Bull-Honda deal was considered much more troubling in this regard.

Honda is on a better footing now, having had two seasons back in F1, and it has more control over its supply chain.

Taking on a second team is within its capabilities and while the added burden is now unlikely to have much impact on development, it will generate more data for Honda to work with and increase the chances of it spotting a failure, which subsequently will help reliability.

That will be crucial in the years to come as the number of units a team can use during the season reduces as per the regulations.

The regulations are written in such a way that if Sauber and Ferrari successfully part ways at the end of their agreement next year, Honda would theoretically be obliged to supply the Swiss team, as it is the manufacturer that supplies the fewest teams.

The deal would require a set of criteria to be met - including agreeing a price and an instalment plan for paying for the engines.

Both parties will want to avoid a scenario of appearing to be forced to partner up, given the image it would create. So it makes sense that discussions, regardless of whether they are being described as informal, are under way.

Honda could be concerned about payments for the supply, given Sauber's recent financial situation - which led to its decision to stick with Ferrari's 2016-spec engines next year.

But Sauber is on a stronger footing now with its new investors, and it remains a professional outfit and one of F1's longest standing teams. It is believed paying for its Ferrari engines has not been an issue during that long-term relationship.

There are a few things to iron out, but a partnership is logical so it would not be a surprise if the two reach an agreement for 2018.