Honda pulls out of F1

[FoxForceFive]

Wow.

C & P for Andy's benefit:

[size=20pt]Honda cost-cutting forces formula one team into emergency stop[/size]

The global financial crisis has hit one of the world's richest sports, motor racing, as the Japanese carmaker Honda today confirmed it would withdraw from formula one before the start of next season.

The move - a desperate attempt by the company to cut costs - shocked the motor racing world and all but ended Honda's long-held dream of claiming the formula one title.

The news came as global sales at BMW, the world's biggest premium carmaker, plunged by a quarter in November. Sales dropped to 96,570 units, led by a 26.2% drop at the flagship BMW brand.

The crisis facing the global car industry was underlined yesterday when executives from US automakers appeared in front of the senate banking committee to plead for up to $34bn (£23bn) in emergency government aid.

Car sales around the world have plummeted as consumers cut back on spending in the face of widespread job losses and a deepening recession.

In Germany, Europe's biggest car market, new car sales are expected to hit post-reunification lows this year and next before starting a slow recovery in 2010, the VDA auto industry association forecast this week.

Honda's formula one team employs more than 700 people in Brackley, Northamptonshire and its drivers last season included Britain's Jenson Button.

Honda's chief executive, Takeo Fukui, said he did not know when the firm would be in a position to return to the sport.

"This difficult decision has been made in light of the quickly deteriorating environment facing the global auto industry," he told reporters.

"Honda must protect its core business activities and secure the long term as widespread economic uncertainties continue to mount around the world."

Fukui, who once said he was prepared to invest "a trillion yen" to secure a championship title, said attempts would be made to find a buyer for the team before the start of the 2009 season.

"We will enter into consultation with the associates of the Honda racing team and its engine supplier Honda Racing Development regarding the future of the two companies. This will include offering the team for sale," he said.

Fukui said the firm had no plans to supply engines to other teams: "We do not want to be half in and half out of the sport."

Honda has come under mounting pressure from some shareholders to ditch its formula one team, which finished next to last in the constructors' standings last season and costs the firm an estimated $500m (£340.5m) a year.

Plummeting demand in the US forced Japan's second biggest carmaker to lower its sales outlook for the year through to the end of March. Yesterday, it announced it would trim its UK and Japan workforce.

Yesterday, the heads of the "big three" carmakers - General Motors, Chrysler and Ford - vowed to focus on cutting production costs and increasing fuel efficiency in return for aid.

The chief executives of GM and Chrysler indicated they would be willing to resume talks on a possible merger.

But their assurances were greeted with scepticism by committee members. "I don't trust the car companies' leadership," said Charles Schumer, a Democratic senator from New York, but he added: "We can't let the industry fail."

George Bush is reluctant to use part of the government's $700bn bailout package to support the industry, despite warnings that GM and its rivals face imminent collapse.

The president-elect, Barack Obama, said he supported measures to rescue the industry, but carmakers are concerned that his arrival in the White House in January will come too late.

http://www.guardian.co.uk/business/2008/dec/05/formula-one-honda-car-industry

 

[Oncy]

Holy fuck.
Thats the richest team in f1.
Lol@jensen

 

[FoxForceFive]

Yep, holy fuck indeed.

Make sense though. Imagine Honda had to put a thousand factory workers on the dole whilst pumping millions upon millions into F1?

We may see some even more drastic measures to cut costs in F1 as the global demand for cars hits a low.

 

[Squiggles]

They were fucking rubbish, though

Should stick to bikes.

 

[FoxForceFive]

Honda remain hopeful of competing in 2009

The Honda Formula One team said it was optimistic about its chances of competing in the 2009 World Championship after Nick Fry, the company's CEO, confirmed three prospective buyers had expressed an interest in taking control of the team.

Affected by the credit crisis, collapsing global auto markets and an army of angry shareholders, Takeo Fukui, the chief executive of Honda Motors, this morning confirmed the team would withdraw from the sport unless a new buyer could be found before the end of the month.

However, despite the bleak outlook, Fry says the team could be on the grid when the new season gets underway in Australia on March 29.

"In the last 12 hours we've had three serious people come to us and suggest they would like to buy the team, so we're still hoping to be there in Melbourne," Fry said.

Despite the £200 million per year costs of maintaining its F1 team, Fry maintains that Honda are an attractive asset for any potential buyer.

"The one thing I would say is that this is a completely different situation from prior Formula One teams stopping. This team is one of the best funded, has the best assets, the best resources in the pit lane, a fantastic group of people, and a car designed by Ross Brawn, who has won many world championships, and is ready to go next year.

"I think we are going to be a desirable asset for somebody. We are very hopeful, as are most of the commentators in Formula One, that this team is going to take a big step upwards, so it is a big opportunity for somebody."

Investors in Honda have said the company’s decision may have been based on the rising ferocity of complaints from shareholders, who believe that the money lavished on F1 participation could be better deployed.

In contrast with Toyota, which said yesterday that it had not changed its plans to compete in the 2009 season, Honda’s participation in the sport was not financially assisted by large sponsorship deals.

"This is all to do with the financial situation in the world, and as you know all the motor companies are being struck very hard by falling sales," confirmed Fry. "Clearly more success on the track would have been nice, but this is a much-bigger-picture issue."

The decision leaves the team’s drivers, Jenson Button and Rubens Barrichello, without seats for next season. For Button, the loss of Honda is yet another blow to a career that seems to be permanently on hold. The British driver has been completely eclipsed by Lewis Hamilton, his compatriot, as he has waited for Honda to provide him with machinery capable of consistently winning races. With a salary of £20m, Button could be facing a year on the sidelines.

However, Fry maintained that he was keen for Button to remain with the team despite reports that he could move to Toro Rosso, the only remaining team yet to confirm their 2009 line-up.

"Jenson has a contract with the team, and if we can find new owners then we hope he will continue," Fry said. "He has very much been an integral part of the team for a good few years now.

"He is a fantastic driver and a big asset, which will hopefully make the team even more attractive. On the second driver position (previously occupied by Rubens Barrichello), that is undecided as yet."

The move also means some 600 staff at the team's headquarters in Brackley, Northamptonshire, face unemployment in the new year.

"At the moment it is business as usual," Fry said. "Obviously we have to go through the normal consultation period with the staff to decide the future of the company, and during that period we are very much hoping to find a buyer."

Last night there were fears that Honda’s move may prompt others to follow suit and leave Formula One, which even before this latest withdrawal was down to 20 cars, unviable. However, Formula One supremo Bernie Ecclestone, who faces the prospect of running an 18-car grid next season, vouched for Honda's potential credentials.

"It's a big, big shame for Honda because I have no doubt they would have been running in the top four next year without any problems," he said. "They have 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."

Asked whether F1 was in crisis, Ecclestone replied: "Formula One is in no bigger a crisis than any other company throughout the world - the world is in crisis at the moment. But the world won't stop, that's for sure."

http://www.timesonline.co.uk/tol/sport/formula_1/article5291816.ece

 

[WhyAlwaysMe?]

Oh well..