The penalty comes after Toyota stripped one of Hamlin’s engines before it could be inspected by NASCAR officials after the #11 won at Briston Motor Speedway in March.

Engine supplier Toyota took responsibility for the indiscretion.

“As the engine builder for our partner NASCAR Cup Series teams, TRD (Toyota Racing Development) is solely responsible for the handling and disposition of all our engines pre- and post-race,” said David Wilson, president of TRD USA.

“Despite procedures being in place, Denny’s race-winning engine from Bristol was mistakenly returned to our Costa Mesa facility, disassembled and rebuilt instead of being torn down and inspected by NASCAR per the rule book.

“Although we know with absolute certainty that the engine was legal and would have passed inspection, we left NASCAR in an impossible position because they were not given the opportunity to properly inspect our engine.

“We have reviewed our processes and have implemented several additional steps to ensure that this never happens again. TRD takes full responsibility for this grievous mistake, and we apologise to Denny, Chris, Coach Gibbs, the entire JGR organization, NASCAR and our fans.”

Hamlin’s crew chief Chris Gabehard was delivered a $150,000 fine ($100,000 USD) and Joe Gibbs Racing was also docked 75 points and 10 playoff points in the owners’ standings.

Joe Gibbs Racing was found to be in violation of Sections 14.7.1.E&F and 14.7.1.1.B&E of the NASCAR Rule Book.

Section 14.7.1.E states all race-winning engines “will be long block sealed by NASCAR and must be completely inspected by NASCAR before the engine may be disassembled by the team.” and “If the team chooses to use the long block sealed race winning engine again before being inspected, the engine must be used in the same vehicle number the next time it is used.”

Section 14.7.1.F states the long block engine assembly seals of a long block sealed engine can not be altered, removed or replaced.

The team also violated Section 14.7.1.1.B&E, which states “seals must not be removed without prior approval by NASCAR” and “if a race winning engine is sealed and presented for post-race inspection at a later date with damaged, altered or missing seals, an L2 Penalty will be assessed.”

A NASCAR statement red: “Each race-winning engine must be inspected by NASCAR once the race team determines that its life cycle is complete. In this instance, prior to presenting the engine to NASCAR for inspection, Toyota Racing Development disassembled and rebuilt the No. 11’s Bristol-winning race engine. Per the NASCAR Rule Book, this violation results in an L2 penalty to the race team and driver. Toyota Racing Development self-reported this violation.”

Hamlin’s win at Bristol Motor Speedway was ruled ineligible for the playoffs. However, Hamlin has two more wins which guarantee him as sport in the round of 16.

The penalty has dropped Hamlin from third in the standings to sixth and all but ends his hopes of winning the regular season title with two races remaining.

The NASCAR Cup Series continues on Sunday at Daytona International Speedway on Sunday at 9:30am AEST.

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