Daily Racing News

Honda pulling out of Formula One

By PA SportsTicker

Honda will withdraw from Formula One unless a buyer can be found
by the end of the month, the Honda Motorsport Corporation 
confirmed in a statement on Friday.

Takeo Fukui, the chief executive of Honda Motors, announced at a
news conference in Tokyo that the company would be willing to 
sell the team, but if a buyer can not be found it will withdraw 
from the 2009 competition, ending the team's nine-year 
involvement in the sport.

Honda initially supported BAR with engines from 2000 to 2005 
prior to becoming a team in its own right in 2006.

However, exactly seven months after withdrawing its financial 
support of Super Aguri - leading to that team's demise - Honda 
themselves are being forced to quit.

In a statement, Fukui announced the decision was made in light 
of the global credit crisis to preserve Honda's core business 
activities.

"This difficult decision has been made in light of the quickly 
deteriorating operating environment facing the global auto 
industry, brought on by the sub-prime problem in the United 
States, the deepening credit crisis and the sudden contraction 
of the world economies," he said.

"Honda must protect its core business activities and secure the 
long term as widespread uncertainties in the economies around 
the globe continue to mount.  A recovery is expected to take 
some time.  Under these circumstances, Honda has taken swift and
flexible measures to counter this sudden and expansive weakening
of the marketplace in all business areas."

Given the current economic crisis, it is hard to envision a 
buyer stepping forward, which would leave just nine teams and 18
cars lining up on the grid at the Australian Grand Prix on March
29.

Honda's decision comes as a bolt out of the blue, just two weeks
after it took part in a test in Jerez where it ran the rule over
two prospective new drivers in Lucas di Grassi and Bruno Senna, 
the nephew of former champion Ayrton Senna.

It now means Jenson Button is out of a job after nine years in 
F1 unless there is a late reprieve.

Rubens Barrichello, who partnered with Button last season, was 
already uncertain of his future after 16 years in F1 as he was 
without a confirmed drive for 2009.

But, the Briton has joined the Brazilian in seeking employment 
elsewhere following Honda's bombshell, which is certain to send 
shockwaves throughout the sport.

Team principal Ross Brawn and chief executive Nick Fry informed 
the other nine marques of Honda Japan's decision at a meeting in
London on Thursday of the Formula One Teams' Association (FOTA).

That was followed Thursday night when the 600 members of staff 
at the team's headquarters in Brackley, England were told of the
plans.

Honda had a solitary Grand Prix victory to its name, when Button
triumphed in Hungary in 2006, and Fukui admitted his regret that
the team failed to add to that success in its third stint in 
Formula One.

"Surmounting many challenges, the Honda Team achieved a Grand 
Prix victory in 2006, enabling Honda to receive overwhelming 
support from Honda fans around the world that were looking 
forward to greater success," he said.

"It, therefore, has been an extremely difficult decision for us 
to come to this conclusion without having been able to fully 
meet the expectations of our fans."

Honda Motor Corporation are dealing with faltering sales 
worldwide and the Formula One team is not the only casualty.

On Thursday, 490 temporary employees were told they would be 
laid off at the end of January, while last month 270 temporary 
employees were informed their contracts were not being renewed.

Japan-based Toyota Motor Corporation - also owners of a Formula 
One team - are also struggling, with production to cease at all 
five of its factories in Tomakomai, Hokkaido on December 25.

It will be the first time in 15 years Toyota has closed a plant 
to cut production.

Earlier this year FIA president Max Mosley made it clear costs 
in F1 were spiraling out of control, claiming the sport was 
rapidly becoming "unsustainable".

Mosley has since urged teams to drastically reduce costs in 
order to survive, but the accelerated global economic downturn 
has only exacerbated the situation.

Mosley is due to hold a meeting of the World Motor Sport Council
in Monaco next Friday ahead of the Gala Dinner that will 
officially see Lewis Hamilton crowned as champion.

It is a meeting certain to be one of the most crucial of his 
reign.