Honda and Sauber break off 2018 F1 engine supply deal - New Ferrari deal for Swiss

Sauber and Honda have announced before the Hungarian Grand Prix that their partnership to use Honda's Formula 1 engines in 2018 will not proceed.

On Friday morning the Swiss team announced that it will partner with Ferrari for the latest specification 2018 engines next season.

Currently, Sauber uses year old 2016-specification Ferrari engines, which has made them uncompetitive but saved money and former Team Principal Monisha Kaltenborn brokered a deal to use Honda power units from 2018. But following her departure in June and replacement by Frederic Vasseur, the Swiss team called the deal off.

"It is very unfortunate that we have to discontinue the planned collaboration with Honda at this stage," said Vasseur in a statement.

"However, this decision has been made for strategic reasons, and with the best intent for the future of the Sauber F1 Team in mind.

"We would like to thank Honda for their collaboration, and wish them all the best for their future in Formula One."

Speaking a day later Vasseur said that continuing with Ferrari was the right thing to do.

"I am very pleased to confirm that we will continue to work with Scuderia Ferrari as our engine supplier in form of a multi-year agreement," he said.

"The shared experience between the Sauber F1 Team and Ferrari has built a strong foundation, which will allow us to move forward swiftly and efficiently, also in terms of the development of the 2018 car. I am convinced that together we can achieve the results which reflect the passion and determination that is, and always has been, behind the Sauber F1 Team.”

The Ferrari extension, with current engines, will give rise to speculation that Ferrari could be set to place one of its Academy drivers at Sauber, F1 series leader Charles Leclerc or Antonio Giovinazzi.

There are some who believe it's possible Leclerc could go straight into Kimi Raikkonen's seat in 2018 as a rookie, but experience tells us that Ferrari likes to take young drivers with some F1 racing experience elsewhere. Another year for Raikkonen before being replaced by Leclerc in 2019 would seem like a workable supposition, but the next few months will tell.

In a statement on Thursday, Honda said that the deal was broken off due to differences between the two manufacturers' 'future direction.'

"We had built a good relationship with Sauber, and had been looking forward to entering the 2018 F1 season together," said Honda Motorsports General Manager, Masashi Yamamoto.

"However, during discussions after management changes at the team, we reached a mutual agreement to call-off the project due to differences in the future directions of both parties.

"We would like to thank Sauber for their cooperation, and wish them all the best for their future," continued Yamamoto.

"Despite this announcement, Honda’s passion for motorsports and strong commitment to Formula One remains unchanged," concluded the statement.

With an ongoing partnership with Ferrari, Sauber could renew its engine supply deal and have Formula 2 star Charles LeClerc within its ranks next season. However, Mercedes could also emerge as an engine supplier if Pascal Wehrlein and Marcus Ericsson are retained.

Sauber will announce its 2018 engine supplier soon.