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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

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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.

zelatore
12-05-2008, 10:28 AM
They were in F1? I must not have looked far enough back on the grid.

Sorry, pretty bad.

Given their awful performance the last few years, I can't say I blame them. The sad part is I had some hope for them getting back on track with the hiring of Ross Brawn last year. His first year was pretty much a no-show as everything was already in place, but I was eager to see what he could do in '09-'10.

Of course, you also have to consider what Bernie, Max, and the FIA are trying to do to the sport. Given half a chance, they'll have open-wheel nascar. NONE of the teams wants that. This is an engineering showcase, not a spec racer class!!

zelatore
12-05-2008, 10:30 AM
In a bit of a silver lining:

From London's Daily Telegraph-

The Japanese giants have confirmed they are pulling out of Formula One, a decision made in light of the global financial crisis and in a bid to preserve their core business activities.

The announcement has understandably sent shock waves throughout the sport, and there are fears other teams could follow suit. However, Fry remains hopeful new owners will be found and the team will be on the grid for the start of next season 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,” confirmed Fry to the BBC.

The development of next year’s car is already at an advanced stage, with Fry believing as a going concern, the team in its present guise should be seen as a valuable commodity.

“The one thing I would say is that this is a completely different situation from prior Formula One teams stopping,” added Fry.

“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.”

The knock-on effect from falling car sales around the world, in particular in the biggest market of the United States, has forced Honda to act.

“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.”

After six years supplying engines to BAR, Honda became a works team in their own right in 2006, with Jenson Button winning their only race to date in Hungary that year.

The last two years have been miserable for all concerned at Honda, who finished ninth in last season’s constructors’ championship, and with Button last of the 18 point-scoring drivers.

If Button is to continue in F1, just two options remain open to him: either a buyer is found and he retains his seat, or he moves 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,” added Fry.

“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.”

As for the 700-strong workforce at the team’s Brackley base, they now face the prospect of redundancy after serving a three-month notice period.

“At the moment it is business as usual,” insisted Fry. 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.”

Formula One supremo Bernie Ecclestone, who faces the prospect of running an 18-car grid next season, unsurprisingly firmly 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.”