gcarter
12-05-2008, 06:15 AM
So what do you think of this?????
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Honda quits F1 as financial crisis bites
By James Allen, Roger Blitz and Reuters
Published: December 4 2008 21:03 | Last updated: December 5 2008 08:21
http://media.ft.com/cms/3947e11a-c2af-11dd-a5ae-000077b07658.jpg
Honda (http://markets.ft.com/tearsheets/performance.asp?s=jp:7267)pulled out of Formula One on Friday, dealing a major blow to the sport and ending a dream for Japan’s number two carmaker.
Amid slumping car sales triggered by the global economic crisis, Honda was no longer willing to bankroll the Formula One team and its estimated annual budget of $500m.
Takeo Fukui , Honda’s chief executive, told a news conference that a return to the sport could take time and added that there were no plans to continue as an engine supplier.
“This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry,” Mr 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.”
Mr Fukui, who told Reuters earlier this year that he would “spend a trillion yen” if he could to make Honda a Formula One winner, added: “But at this stage we have no plans to return to F1. We have no plans to supply engines to other teams. We do not want to be half in and half out of the sport.”
Honda would have little time to find a buyer with the 2009 season starting in Australia on March 29.
Ross Brawn, Honda’s team principal, broke the news to the 667-strong Honda staff at 6pm on Wednesday, prompting a flood of calls to other teams from staff looking for jobs. Other F1 teams were also informed of the Honda decision on Wednesday.
One potential customer could be Dubai International Capital, the emirate investment buy-out group. During this season, DIC pulled out of talks to purchase Honda’s sister team, Super Aguri.
Any buyer would take over a team whose engines would be supplied by Ferrari rather than using Honda’s V8 engines, which have proved very costly to manufacture.
The decision has huge implications for the future of motorsport’s elite competition, with fears that other teams wholly owned by car manufacturers may also be facing financial trouble. Particular focus will be on Toyota (http://markets.ft.com/tearsheets/performance.asp?s=jp:7203), Honda’s big Japanese rival which could use Honda’s decision to bow out itself.
The Fédération Internationale de l’Automobile, F1’s governing body headed by Max Mosley, said in a statement (http://www.fia.com/en-GB/mediacentre/pressreleases/f1releases/2008/Pages/f1_costs.aspx)on Friday that Honda’s announcement confirmed its “longstanding concern that the cost of competing in the World Championship is unsustainable.” The global economic downturn had only exacerbated an already critical situation, it said.
Mr Mosley has been arguing for stringent cost-cutting measures such as a cap on team budgets and the introduction of standard engines.
Honda’s decision comes after a season in which the team, based in Brackley in Northamptonshire in the UK, finished eighth in the world championships. The Japanese company poured £147m ($216m) into the team, the highest costs of any team on the grid.
Although turnover rose 23 per cent, only a tiny amount is thought to have come from sponsorship. Honda has heavily promoted its Earth car, the only team to attempt to promote environmental sustainability.
The outcome of the FIA’s meeting in Monaco next week is now critical to F1’s future. Williams has suffered net losses of £50m in the past two years. But plans to introduce standard engines are opposed by Ferrari and Toyota.
Honda came into motor racing in the 1960s and supplied engines in the 1980s and 1990s to Williams and McLaren. Honda bought out BAR in 2005, but the team won only one grand prix, in Hungary in 2006.
http://media.ft.com/FTCOM/Images/ftlogo2.gif
Honda quits F1 as financial crisis bites
By James Allen, Roger Blitz and Reuters
Published: December 4 2008 21:03 | Last updated: December 5 2008 08:21
http://media.ft.com/cms/3947e11a-c2af-11dd-a5ae-000077b07658.jpg
Honda (http://markets.ft.com/tearsheets/performance.asp?s=jp:7267)pulled out of Formula One on Friday, dealing a major blow to the sport and ending a dream for Japan’s number two carmaker.
Amid slumping car sales triggered by the global economic crisis, Honda was no longer willing to bankroll the Formula One team and its estimated annual budget of $500m.
Takeo Fukui , Honda’s chief executive, told a news conference that a return to the sport could take time and added that there were no plans to continue as an engine supplier.
“This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry,” Mr 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.”
Mr Fukui, who told Reuters earlier this year that he would “spend a trillion yen” if he could to make Honda a Formula One winner, added: “But at this stage we have no plans to return to F1. We have no plans to supply engines to other teams. We do not want to be half in and half out of the sport.”
Honda would have little time to find a buyer with the 2009 season starting in Australia on March 29.
Ross Brawn, Honda’s team principal, broke the news to the 667-strong Honda staff at 6pm on Wednesday, prompting a flood of calls to other teams from staff looking for jobs. Other F1 teams were also informed of the Honda decision on Wednesday.
One potential customer could be Dubai International Capital, the emirate investment buy-out group. During this season, DIC pulled out of talks to purchase Honda’s sister team, Super Aguri.
Any buyer would take over a team whose engines would be supplied by Ferrari rather than using Honda’s V8 engines, which have proved very costly to manufacture.
The decision has huge implications for the future of motorsport’s elite competition, with fears that other teams wholly owned by car manufacturers may also be facing financial trouble. Particular focus will be on Toyota (http://markets.ft.com/tearsheets/performance.asp?s=jp:7203), Honda’s big Japanese rival which could use Honda’s decision to bow out itself.
The Fédération Internationale de l’Automobile, F1’s governing body headed by Max Mosley, said in a statement (http://www.fia.com/en-GB/mediacentre/pressreleases/f1releases/2008/Pages/f1_costs.aspx)on Friday that Honda’s announcement confirmed its “longstanding concern that the cost of competing in the World Championship is unsustainable.” The global economic downturn had only exacerbated an already critical situation, it said.
Mr Mosley has been arguing for stringent cost-cutting measures such as a cap on team budgets and the introduction of standard engines.
Honda’s decision comes after a season in which the team, based in Brackley in Northamptonshire in the UK, finished eighth in the world championships. The Japanese company poured £147m ($216m) into the team, the highest costs of any team on the grid.
Although turnover rose 23 per cent, only a tiny amount is thought to have come from sponsorship. Honda has heavily promoted its Earth car, the only team to attempt to promote environmental sustainability.
The outcome of the FIA’s meeting in Monaco next week is now critical to F1’s future. Williams has suffered net losses of £50m in the past two years. But plans to introduce standard engines are opposed by Ferrari and Toyota.
Honda came into motor racing in the 1960s and supplied engines in the 1980s and 1990s to Williams and McLaren. Honda bought out BAR in 2005, but the team won only one grand prix, in Hungary in 2006.