Honda Withdraws From F1 Putting Team Up For Sale

Citing the ‘deepening credit crisis’, Honda has announced that it is withdrawing from F1 with immediate effect although the racing team’s management is highly confident that a buyer can be found to ensure the team’s participation in the sport next season.

In a statement released in Japan early this morning, Honda Motor Company President and CEO Takeo Fukui announced: ‘Honda Motor Co., Ltd., have come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season of participation.

‘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.

‘We will enter into consultation with the associates of Honda Racing F1 Team and its engine supplier Honda Racing Development regarding the future of the two companies. This will include offering the team for sale.’

While the withdrawal of Honda’s investment is an undoubted blow for the sport, the racing team’s management led by CEO Nick Fry and Team Principal Ross Brawn are buoyant about the operation’s future.

Commented Fry: ‘In the last 12 hours we’ve had three serious people come and suggest they’d like to buy the team. We’re one of the best-funded teams and have the best assets and resources in the pit lane – we’ll be quite a desirable asset for somebody.’

Added Brawn: ‘We are seeking to secure a future for the team. It’s a fantastic opportunity for someone to step into what will be one of the most competitive teams in F1 next year.’

F1 supremo Bernie Ecclestone said he is keen for a buyer to have the team on the grid for the start of next season and he believes the progress Honda have already made in their preparations for the introduction of new regulations next season make the team an attractive option for anyone looking to enter the sport.

‘It’s a big shame for Honda because I’ve no doubt that team would have been running certainly in the top four next year without any problems.

‘They’ve been working hard and they’ve spent a lot of money to put themselves in that position, so if anyone does want to be in Formula One, this is a team they should certainly look to buy.

‘It’s a big opportunity today, with the way things are, for any company that’s run efficiently to benefit.’

Negotiations have already begun to find a new buyer for the residual assets of the team including a 750-people strong factory in Northamptonshire comprising 2 wind tunnels – a unique asset in the sport – and a newly modified race car that is in the final stages of the design process to improve on its performance ahead of the 2009 season.

Commercially the team is also in a strong position having already signed one new major multi-national company as a technical partner for the long-term and is in advanced discussions with three major new sponsors, two of which are considering investing in Formula One for the first time.

In a letter to the team’s sponsors commercial partners, marketing director David Butler wrote: ‘The management team is deeply committed to securing the team’s future and we are engaged in seeking a new team owner given the high expectations we had for 2009 under new technical leadership in addition to the world class facilities and people here at Brackley.’

Honda first entered F1 back in 1964 but, after various forms of relationships with teams, pulled out of the sport in 1992 following the introduction of a new management regime. The firm re-entered F1 in 2000 through a deal to supply engines to the British American Racing team, a move that led to Honda assuming full control of the team at the end of 2005.

The move by Honda to withdraw from F1 comes at a time when motorsport governing body the FIA has been looking to introduce new cost-cutting measures to make the sport more affordable.

The team, comprising of drivers Jenson Button and Rubens Barrichello, finished fourth in the 2006 constructors’ championship and second in 2004. The 2009 F1 season begins on 29th March, in Australia.