Honda To Pull Out Of F1

[The Don]

Honda on the brink of folding

Eurosport - Thu, 04 Dec 22:02:00 2008

Honda are pulling out of Formula One and will close their team down if no buyer is found by the end of the year, a senior source at a rival team has told Reuters.

2008 Brazilian GP Honda Barrichello - 0

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"They have a month to find a buyer, otherwise they are closing the team," the source quoted Honda team bosses Ross Brawn and Nick Fry as telling a meeting of the Formula One Teams' Association.

"It's very, very sad for Formula One to see a team with the heritage of Honda leaving the sport," added the source, adding it was no real surprise given the team "were running up costs to a level that were self-evidently unsustainable".

Another source said the staff were told they would be on three months' notice from January if no buyer was found. The season starts in Australia on March 29.

There was no official confirmation from the British-based team, whose staff were told in a meeting at the factory on Thursday evening.

However, a spokeswoman said there would be a statement from Honda Motor Corporation on Friday.

The departure of Japan's number two carmaker, with their sales and profits battered by the global financial crisis, has huge implications for the sport.

It would also leave Britain's Jenson Button without an immediate drive for 2009 - although some teams have yet to confirm their lineups.

Brazilian Bruno Senna, the 25-year-old nephew of the late triple world champion Ayrton, had also been tipped to take the place of his veteran compatriot Rubens Barrichello at Honda next season.

Honda's exit will leave the money rich sport, dominated by carmakers, facing a depleted grid of just 18 cars if no buyer with deep pockets can be found in the extremely tight time frame available.

Formula One sources also fear that other major manufacturers, with their factory production suspended and thousands of staff laid off, could follow Honda's example.

Honda, along with Toyota, have been the big spenders in Formula One in recent years.

Brawn, the former Ferrari technical director who won multiple championships with Michael Schumacher, was hired to run the team after he returned from a one-year break at the end of last year.

Despite their resources, Honda had a dismal 2008 season and were pinning their hopes on next year's new rules levelling the playing field.

Button, a winner for Honda in Hungary in 2006, scored just three points while Barrichello took 11. The team finished ninth overall.

The last team to leave Formula One was Honda-backed Super Aguri, the struggling tail-enders who folded for financial reasons in April and left Britain's Anthony Davidson and Japan's Takuma Sato without a drive.

Reuters

http://uk.eurosport.yahoo.com/04122008/58/...nk-folding.html

[mazdaspeed]

Now that is really sad news – It’s nice to see two Jap’s taking part in the F1’s – Hope some 1 can buy the team and keep the Honda spirit running.

However it’s understandable that going neck to neck with the likes of Ferrari, BMW and the rest is not easy.

[xXx]

sad indeed. i was hoping for more jap teams to join F1 not the opposite. is this move due to financial constraints or they are just fed up with continues under performance?

BTW what are you guys opinion of FIA's decision to use standardize engines? Alphonso is the latest to join the anti bandwagon.

[KLM]

It's not the end of an era. Honda have quit and returned several times in the past, as have Renault. They'll be back when things are better. They're one of the most successful F1 engine builders of all time, and they know the value of F1. They're only quitting because the money just isn't there anymore, and the board can't justify spending hundreds of millions on essentially a marketing program when their sales in their biggest market (North America) have dropped more than 30% year on year. It's not as if they have additional sponsors that pick up the entire tab either, so they really cant be blamed. They're classic victims of the current global financial crisis.

Standard engines suck, IMHO. There is already an international series that limits development and uses standardized engines. It's called GP2. I'm all for cost-cutting ($400 million to race 2 cars 18 weekends a year is stupid), but you need to let the manufacturers innovate and try to get ahead of each other, within certain guidelines. Standard engines will kill F1 in its current guise.

[MasterDon]

It's not the end of an era. Honda have quit and returned several times in the past, as have Renault. They'll be back when things are better. They're one of the most successful F1 engine builders of all time, and they know the value of F1. They're only quitting because the money just isn't there anymore, and the board can't justify spending hundreds of millions on essentially a marketing program when their sales in their biggest market (North America) have dropped more than 30% year on year. It's not as if they have additional sponsors that pick up the entire tab either, so they really cant be blamed. They're classic victims of the current global financial crisis.

exactly my thoughts...it's better to cut costs now then return when the economy is better and when they have a better car...anyway i'm sorry to see button out of a car in 2009...

[maliths]

exactly my thoughts...it's better to cut costs now then return when the economy is better and when they have a better car...anyway i'm sorry to see button out of a car in 2009...

Im sure they will be back when they get the money. Honda are struggling with their sales. The manufacturing plant is Swindon here in the UK is scheduled to shut for 2 months next year to cut production and a few months ago they parked 7000 new civics in an airfield as they were not selling.

http://www.guardian.co.uk/business/2008/no...otive-recession

http://findarticles.com/p/articles/mi_qn41...02/ai_n30968923

Edited December 5, 2008 by maliths

[The Don]

I personally think it is a responsible decision by Honda, though we are all very disappointed. They are an auto maker first and foremost and a responsible employer of thousands across the globe. They are also heavily involved in motor sport across the spectrum (for example Moto GP). While they would have definitely benefited by the input they get from racing and the marketing associated with it, at times of economic crisis I can understand why they will chose to concentrate on their core business (and in the process save jobs) rather than motor sport. I think the BAR Honda team is solely sponsored by Honda and nobody else (Toyota F1 is sponsored by Panasonic and many others)

I'm sure they will be back after this crisis. The interesting question is who else might pull out.

[GTAm]

I won't be surprised to see a few other manufacturers take a break as well. Renault's hit pretty bad with the laguna flopping and Nissan sales nose-diving.

BMW has said that this is the "worst crisis it's ever faced".

Could we see a thin grid in 09?? I hope not...

[Devinda_Z]

i was really looking forward to seeing another Senna take the stage along with Honda...

so much for that then

sigh

[MasterDon]

i was really looking forward to seeing another Senna take the stage along with Honda...

so much for that then

sigh

from AUTOBLOG

Bruno Senna thought he was so close to realising his long-cherished Formula One ambitions. Then came the shocking news that Honda were withdrawing from F1 with immediate effect. Senna's main hope must now be that the team finds a buyer who also happens to be impressed by his recent test performance and by the potential pulling power of his name.

But the Brazilian has no intention of sitting on his hands. "We'll have to look around and see what other options are open to us," said Senna. "These things happen. It's never been easy to get into Formula One – you just have to keep plugging away and see what turns up."

Obviously, he is hoping that the now ex-Honda team keeps going: "And I'm not burn any bridges there, but I can't wait for ever... On the other hand, the financial situation is tough everywhere at the moment and it is difficult to see where things are heading. So in the circumstances, you have to be very flexible."

[The Don]

I won't be surprised to see a few other manufacturers take a break as well. Renault's hit pretty bad with the laguna flopping and Nissan sales nose-diving.

BMW has said that this is the "worst crisis it's ever faced".

Could we see a thin grid in 09?? I hope not...

teams like renault have other sponsors supporting them GTAm so they have more incentive to compete

[Kavvz]

Teams committed to future of F1: Toyota, Ferrari and Renault have all expressed their determination not to follow Honda out of Formula One.

[Devinda_Z]

Tata sponsors Ferrari's F1 team for 2009

By Stephen Dobie

18th December 2008

Tata is set to sponsor Ferrari's Formula 1 team from next season. The Indian car manufacturer that's bought Land Rover and Jaguar and is responsible for the £1200 Nano city car will be the first Indian company to sponsor the Prancing Horse, although the actual value of the investment hasn't been revealed.

Owner Ratan Tata has a place on the Fiat board, hence the new attachment to Ferrari.

Fiat and Tata are also currently in a joint venture to produce Indian-built small cars.

Other Tata news comes in the shape of Jaguar and Land Rover, who are currently in talks with the government about a £1bn bailout. The credit crunch has hit both quite hard, and a sizeable tax-funded grant is seen as a way to help turn things around.

Source : http://www.evo.co.uk/news/evonews/233200/t...rs_ferrari.html

Edited December 18, 2008 by Devinda_Z

[MasterDon]

Tata sponsors Ferrari's F1 team for 2009

i guess we should be happy about the progress our neighbouring country is making ...if only our sh*theads could get their act together we could do the same..

[GTAm]

i guess we should be happy about the progress our neighbouring country is making ...if only our sh*theads could get their act together we could do the same..

Heh heh Well said HellRazor! Would have been nice to see Dilmah tea or Elephant Soda sponsored McLaren Merc! And to think we were so ahead of India in 1995!!!!!

[Devinda_Z]

Heh heh Well said HellRazor! Would have been nice to see Dilmah tea or Elephant Soda sponsored McLaren Merc! And to think we were so ahead of India in 1995!!!!!

forget that!

the Sri Lankan Cricket team can't find a blooming sponsor or even an apparel sponsor for that matter!

'nuff said

[GTAm]

forget that!

the Sri Lankan Cricket team can't find a blooming sponsor or even an apparel sponsor for that matter!

'nuff said

Mihin Air to the rescure !

[MasterDon]

Richards considering Honda rescue deal

By Jonathan Noble - http://www.autosport.com/ Sunday, December 21st 2008, 11:04 GMT

Prodrive boss David Richards has flown to the Middle East for discussions about a potential rescue deal for the Honda Racing Formula One team.

Richards has been pondering whether to get involved in a buy-out of Honda in the wake of the Japanese car manufacturer's decision to pull out of F1.

And although he has made no secret of the fact that he is interested in a return to F1 management, having had spells at Benetton and BAR, he has vowed only to come back if the circumstances are right.

This is why he is now holding talks with investors in the Middle East who want to bankroll an effort. The Kuwait-based Investment Dar Company (TID) are shareholders in his Prodrive company.

Speaking to the Mail on Sunday, Richards said: "There are a group of people in the Middle East who want to support a Formula One entry for me and have been very specific about it for a year now. But we have to agree when the timing is right."

Honda Racing CEO Nick Fry said on Friday that he expected news of the progress being made to find a team buyer to be made public in the New Year - although Richards admitted that any deal he was involved in would need careful thinking before talks could progress.

"When you sit down in the cold light of day and realise the liability you would be taking on, and the huge restructuring of staff and resources that will be needed, investors will have to think long and hard before taking a punt," explained Richards.

"You will have to bridge a big gap in finance, probably for three years, before balancing the accounts."

The Mail on Sunday reports that other interested parties in Honda include Greek shipping tycoon Achilleas Kallakis and Force India boss Vijay Mallya.

Richards' ambitions for F1 have also been given a fresh impetus by the decision of Subaru to withdraw their Prodrive-run team from the World Rally Championship.

"It affects about 20 per cent of our business, but we are financially sound and have a talented, nimble organisation with a strong automotive arm looking at future technologies," added Richards.

"Sentiment and perception about the relevance of motorsport has changed in six weeks with the dramatic economic downturn. I have not ruled out getting back into Formula One, it's something I am very interested to do.

"But the big question remains: Is it too big a challenge at this moment in time? That's what I need to determine."

[MasterDon]

Richards considering Honda rescue deal

wow aston martin,prodrive and honda .....great combination me thinks ....that is if the deal does go through

[Devinda_Z]

wow aston martin,prodrive and honda .....great combination me thinks ....that is if the deal does go through

a tad too much to be on a single mans plate don't you think?

it'll be great if he can create synergy from the operating units that might cascade on to each of the divisions in the form of either expereince skill or knowhow gained..

[xXx]

a tad too much to be on a single mans plate don't you think?

exactly what i was thinking. truly a portfolio to be envy of

[MasterDon]

don't know if this news is true or not...but this guy is the second richest guy in the world!

Honda F1 SOLD!

by Jonathon Ramsey on Dec 27th, 2008 at 8:01PM

According to La Stampa, Honda F1 has a buyer: Mexican telecom billionaire Carlos Slim Helu. Reports claim he paid the single dollar Honda was asking. He trumped Force India F1 owner Vijay Mallya, who was suspected to want the Honda team only for its tech know-how, and Prodrive's Dave Richards.

When Honda announced its immediate departure from F1 on December 4, it gave the outfit 27 days to find a bona fide buyer who would make a credible 3-year commitment to run the team. If the team did find such a purchaser, Honda said it would assist with finances and technical support. Carlos Slim has the finances and the experience: he is reportedly the second richest man in the world, and his companies are already involved in motorsport.

If the transaction proves to be true, and assuming the team gets funded properly, it will mean a few good things for the 2009 F1 season: it will add another privateer team to the grid, it will let Ross Brawn continue creating the team he's been dying to lead since he was at Ferrari, and it will return the name "Senna" to the grid. Bruno, Ayrton Senna's nephew, is sponsored by Embratel, a subsidiary of Slim's Telmex company, and will certainly replace Rubens Barrichello as the one flying the Brazilian flag.

[MasterDon]

Honda F1 SOLD!

by Jonathon Ramsey on Dec 27th, 2008 at 8:01PM

According to La Stampa, Honda F1 has a buyer: Mexican telecom billionaire Carlos Slim Helu. Reports claim he paid the single dollar Honda was asking. He trumped Force India F1 owner Vijay Mallya, who was suspected to want the Honda team only for its tech know-how, and Prodrive's Dave Richards.

When Honda announced its immediate departure from F1 on December 4, it gave the outfit 27 days to find a bona fide buyer who would make a credible 3-year commitment to run the team. If the team did find such a purchaser, Honda said it would assist with finances and technical support. Carlos Slim has the finances and the experience: he is reportedly the second richest man in the world, and his companies are already involved in motorsport...............

errr...scatch that - http://www.autoblog.com/2008/12/29/psych-h...an-billionaire/

[Devinda_Z]

errr...scatch that - http://www.autoblog.com/2008/12/29/psych-h...an-billionaire/

so much for seeing Bruno Senna race F1

[Pericles]

errr...scatch that - http://www.autoblog.com/2008/12/29/psych-h...an-billionaire/

hmmm, are you a (former) Dragon Naturally Speaking customer?