Lotus paid to end F1 Cosworth contract

UPDATE Update on the IndyCar note below, Lotus Cars and Lotus Racing (F1) are two completely different entities currently at war with each other. KV Racing only deals with the Lotus Cars group, so the termination of the F1 agreement with the F1 team sends no money to the IndyCar effort.

10/04/10 (GMM) Lotus had to pay to be released from its 2011 contract with current engine supplier Cosworth. The parties agreed in principle at Monza last month to terminate the agreement, amid widespread reports Lotus is set to announce a comprehensive technical deal with Renault.

But the news was only formalized mere days ago, with Cosworth saying it finally "agreed settlement terms satisfactory to both parties".

According to Finland's Turun Sanomat, Malaysian-backed Lotus "had to pay compensation for the cancellation of the contract". [Editor's Note: Another rumor has them increasing their IndyCar effort with Kevin Kalkhoven from one to two cars as compensation to Kevin Kalkhoven who co-owns both Cosworth and the KV Racing team.]

Lotus and Cosworth have been contacted for comment.