Honda quits Formula One amid financial woe
TOKYO (Reuters) - Honda delivered a major blow to Formula One on Friday by withdrawing from the sport with immediate effect, citing the uncertainty created by the global downturn.
Amid slumping car sales triggered by the worldwide slide, Japan's number two carmaker said it was no longer willing to bankroll the Formula One team and its estimated annual budget of $500 million.
Honda Motor Co (7267.T) Chief Executive Takeo Fukui told a news conference a return to the sport could take time, and that there were no plans to continue as an engine supplier.
"This difficult decision was taken recently and was made in light of the quickly deteriorating operating environment facing the global auto industry," Fukui told reporters.
"Honda must protect its core business activities and secure the long term as widespread uncertainties in the economics around the globe continue to mount.
"We will enter into consultation with associates of Honda Racing F1 and its engine supplier Honda Racing Development regarding the future of the two companies. This will include offering the team for sale."
Fukui, who told Reuters this year that he would "spend a trillion yen" if he could to make Honda a Formula One winner, said there would be no speedy return to the sport.
"At this stage we have no plans to return to F1. We have no plans to supply engines to other teams," he said. "We do not want to be half in and half out of the sport."
SENSIBLE SPENDING
Honda would in any case have little time to find a buyer with the 2009 season starting in Australia on March 29.
"We would love to be able to continue in Formula One but we're simply not able to in the current financial climate," Fukui said.
"At testing in Barcelona last month we were still positive about racing in F1 next season.
"But we have to use our resources sensibly. As far as potential buyers go, our criterion would be that they continue to employ the hundreds of engineers who work for the Honda team."
Honda, like all of its rivals suffering from a sharp fall in global car sales, saw its sales in the United States, its biggest market, slump 32 percent last month.
"Pulling out of F1 will have a big impact in terms of cutting overall costs," said Fukui. "The most important thing for Honda is to see where we are in the next three to five years." Continued...
