Bryan Herta Autosport will miss the next round of the IndyCar Series in Sao Paulo before returning for the Indianapolis 500.
The team, which won Indy last year with the late Dan Wheldon, has struggled so far in its first full-time IndyCar campaign, running a Lotus-powered car for Alex Tagliani.
A statement on the Herta squad's twitter feed said it wanted to regroup to try and be more competitive at Indy.
"After not finishing the last two races and falling out of the top 22 in points, Team Barracuda-BHA has elected not to send our cars to Brazil next weekend," it said. "Instead, we will re-focus on the Indy 500 and coming back stronger than ever."
Tagliani was 15th in the season-opener in St Petersburg, before retiring with mechanical issues from the following Barber and Long Beach rounds.