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Alex Palou Withdraws from XPEL Grand Prix Amid “Devastating” Team Reports

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Alex Palou Withdraws from XPEL Grand Prix Amid “Devastating” Team Reports

By Motorsport Newswire – June 20, 2025

In a surprising turn of events, Chip Ganassi Racing’s star driver Alex Palou has officially confirmed he will not race in the upcoming XPEL Grand Prix this weekend, citing “devastating internal reports” concerning the team’s Honda power unit reliability and overall structural issues. The announcement, made late Friday evening, has cast a giant shadow over the final IndyCar field and sent shockwaves through the paddock.

🏁 Immediate Fallout

During a terse press release distributed by CGR late Friday, Palou — a two-time IndyCar champion and the rider of the famed No. 10 DHL Honda — made the following statement:

> “I cannot, in good conscience, compete this weekend. The information I received shows serious safety concerns and performance vulnerabilities that cannot be ignored.”

 

According to insiders, the “devastating reports” refer to a series of recent engine misfires in Hurricanes test sessions, an underperforming aero package that induces erratic handling, and a latent chassis issue discovered during data reviews — all of which allegedly degraded Palou’s confidence in both his machinery and safety footprint.

CGR, in response, confirmed:

> “Rough data from internal testing highlighted significant reliability risks with this weekend’s setup. Alex shared his concerns and requested withdrawal. We fully support him.”

— **Team Principal, Chip Ganassi (via team statement)**

 

A Career at Risk

Palou, 26, stands at the pinnacle of modern IndyCar history — leveling up from Rookie of the Year in 2020 to claiming championships in both 2023 and 2024, and securing his first Indianapolis 500 triumph just last month. His streak of exceptional performance was abruptly interrupted at Detroit, where a crash on Lap 1 dropped him to 25th place, albeit leaving his title chase reasonably intact .

The decision to skip the XPEL Grand Prix is massive. Palou currently holds a non-secured points lead behind team-mate Scott Dixon, and any absence from the grid dramatically shifts the championship trajectory.

What’s Broken?

According to various insider reports:

1. Engine Misfires

Multiple sources revealed Palou’s #10 car experienced repeated misfires during post‑race system checks following the Detroit race and again during last Tuesday’s test day at Austin. These anomalies reportedly mimic conditions found in catastrophic engine failures during previous seasons.

2. Chassis Instability

Telemetry data has allegedly shown erratic steering behavior under heavy braking, with the car twitching mid-corner — point to insufficient aerodynamic tuning or mounting faults.

3. Safety Red Flags

Palou’s engineers reportedly compiled a confidential dossier highlighting disproportionate vibration levels at speed, exacerbated by a suspected engine mounting fault. The team deemed the risk “above acceptable thresholds” for modern cockpit safety.

Team Reaction & Coil of Controversy

From Chip Ganassi Racing, team principal Chip Ganassi reportedly drove to Palou’s motorhome late Friday, spending several hours in talks before issuing a joint withdrawal statement.

Internally, sources say the atmosphere is tense: Ganassi officials are reportedly scrambling to validate or refute Palou’s concerns while also preparing a car for stand-in Ryan Hunter‑Reay should officials greenlight a replacement.

Industry whispers suggest Palou informed executives of his decision at 4 a.m.—just hours before Sunday’s qualifying session — triggering last-minute scramble for mechanical retooling and driver replacement. The futile effort culminated in a locked timing screen: only 26 cars will now start the XPEL Grand Prix, one fewer than the traditional field.

Implications for XPEL & Broadcast

XPEL, a perennial marquee race for the series and one of the season’s most hyped street races, will now proceed with one spot empty at the starting grid. Broadcasters ESPN and Peacock are relocating camera angles to avoid the gap, with commentators speculating all weekend about how Palou’s absence could reshape race dynamics — from Championship standings to strategic opportunities for rivals like Pato O’Ward or Josef Newgarden.

Justin Wilson, lead analyst for IndyCar TV coverage, previewed the fallout:

> “Losing Alex Palou is huge — not just competitively but commercially… this weekend just subtly changed from a highlight to a rebuilding moment for CGR.”

 

Championship Math Shifts

Palou entered the weekend 87 points ahead of Pato O’Ward, with Dixon trailing by 110 points. His withdrawal not only guarantees he scores zero points in this round, but it also hands an open door to his rivals. A win for O’Ward — worth 50 points — and Dixon’s typical top-five consistency could potentially close the gap to within a race’s worth of points by Toronto.

A hypothetical tally:

Alex Palou – 0 points

Pato O’Ward – 50 points (finishing 1st)

Scott Dixon – 35 points (third place + bonus)

This swing could drop Palou from leader to third in one weekend, triggering nightmare scenarios he hadn’t confronted since his Detroit crash .

Palou’s Personal Position

Represented by financial management firm ALPA Racing, Palou emphasized his decision wasn’t financially motivated:

> “My partner, DHL, supports me fully in this. I want the best for safety—not pushing laps for sponsorship. People can spin it what they will, but I want a car I can trust.”
— Palou, via prepared statement

 

Additionally, insiders say Palou has informed his sponsors directly, offering full accountability for the withdrawal — and pledging to return only when the car is safe and competitive.

Community & Paddock Response

Reactions in the paddock have been instantly polarized. One anonymous Ganassi engineer said:

> “This is bigger than Detroit. He’s drawing a line.”

 

Meanwhile, Danica Patrick, watching analystically from the booth, remarked:

> “Teams sometimes race though minor issues. Alex just drew a boundary – I respect him for not blasting over it.”

 

Fans in the grandstands and social media have raised mixed opinions — from cautious support to allegations of championship theatrics.

What Comes Next

For Chip Ganassi Racing, the XPEL withdrawal now looms as an internal crisis. On one hand, ensuring car safety and driver trust is essential. On the other, delivering poor results and a minor grid is a costly blow.

The team has pledged to “complete full inspections, run additional stress tests, and work overnight to repair any faults before Detroit.” Still, an optimistic return depends on solving all identified issues — some of which might require parts lead‑time extending past next weekend.

Meanwhile, Palou is expected at Tuesday’s scheduled test in Indiana, which CGR says will determine his race readiness for the next round.

Final Verdict

Alex Palou’s decision to miss the XPEL Grand Prix isn’t just a shock headline — it could be a pivotal turning point in the 2025 IndyCar championship. When a driver with his legacy and determination steps aside for safety and performance concerns, the reverberations echo far beyond the garages. Whether this marks the beginning of a bold comeback or a costly misstep remains to be seen — but one thing is clear: the paddock will never forget this weekend in Austin.

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