It comes off the back of a dramatic second day of qualifying where both cars were withdrawn from the Fast 12 for technical breaches.
The team made changes to the rear attenuator of the car, which acts as a crash structure and support for the rear wing.
It was found both cars had modifications made to them by adding a sealant to smooth over a lip that would in theory act as an aerodynamic advantage.
The attenuator is a category supplied and controlled part that cannot be modified.
The penalty means Newgarden will start his #2 Shell Chevy from 32nd while Power will start 33rd in the #12 Verizon Chevy.
“The integrity of the Indianapolis 500 is paramount, and this violation of the IndyCar rule against modification to this part and using it ‘as supplied’ is clear,” IndyCar president Douglas Boles said.
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“The penalty should be more than simply starting where the cars might have qualified anyway, if given the opportunity. The cars belong in the field as two of the fastest 33; however, starting on the tail of the field is the appropriate penalty in this instance.”
Scott McLaughlin’s #3 Pennzoil Chevy did not have the unauthorised modification to his car, meaning he will still start 10th.
Power and Newgarden have had their respective strategists suspended for the remainder of the event.
Both cars will forfeit their qualifying prize money too and have been fined 155,000 AUD (100,00 USD) respectively.
Power and Newgarden will forfeit their pit positions and will select their pit boxes after the remainder of the field has an opportunity to adjust accordingly.
“We accept the penalties issued today by the IndyCar Series which are due to a “Body Fit” violation that occurred prior to the qualifying session yesterday,” Team Penske said in a statement.
“We are disappointed by the results and the impact it has on our organisation. We will make further announcements later this week related to personnel for the upcoming Indianapolis 500.”
Boles said the penalties should act as a warning to other teams.
“The positive momentum around the IndyCar Series and the Indianapolis 500 has been on a steep crescendo over the last several months, and we want it to be clear that our intent is to maintain that momentum and discourage teams from putting IndyCar in positions where it calls into the integrity of our officiating and the levelness of the playing field,” Boles added.
“As we look to the remainder of the week and the race this weekend, we will do everything we can to make it clear that this is not only the best racing on the planet but racing where the best win under completely fair conditions.”
The 2025 Indianapolis 500 takes place on Monday, May 26 (AEST).
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