Honda out of Formula One - Team for Sale

Friday, December 19, 2008 -- Team Honda Racing F1 have announced the decision to sell off their Formula One team due to toughening conditions in the auto market across the globe. Formed in 2000, the team had bought the BAR team and converted it into a factory works team in 2006. The management is hoping to find buyers for the outfit before the beginning of the 2009 season.

Ross Brawn, team boss, and CEO Nick Fry are involved in the sorting process for the new buyers. There are rumours floating that Ross Brawn could call upon Ferrari to become engine sponsors for the new team. While Honda came into existence in Formula One way back in 1960, they vanished in the 70s but through the next two decades, they became regular engine suppliers to teams like Williams and McLaren even.

There appearance as a Factory team went off to a great start with Jenson Button winning the Grand Prix at Hungary, a feat that helped them get to 4th place in the constructors' title race. The following season, they were quite poor and only managed six points from their 17 races.

Ross Brawn was brought in with the hope that he could turn things around but it all seemed too little too late for Honda. Honda ended 2008 in 9th place. Jenson Button and Rubens Barrichello, the two Honda team drivers are still without a seat for the 2009 season and so is test driver and GP2 star Bruno Senna.

Full statement from Honda

"We, Honda Motor Co., Ltd., have come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season of participation.

"This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the sub-prime problem in the United States, the deepening credit crisis and the sudden contraction of the world economies.

"Honda must protect its core business activities and secure the long term as widespread uncertainties in the economies around the globe continue to mount. A recovery is expected to take some time.

"Under these circumstances, Honda has taken swift and flexible measures to counter this sudden and expansive weakening of the marketplace in all business areas. However, in recognition of the need to optimize the allocation of management resources, including investment regarding the future, we have decided to withdraw from Formula One participation.

"We will enter into consultation with the associates of Honda Racing F1 Team and its engine supplier Honda Racing Development regarding the future of the two companies. This will include offering the team for sale.

"In its third era of Formula One activities, Honda has been participating in Formula One races from the 2000 season, initially with BAR, by adopting a new format of jointly developing racing machines. Subsequently, in a move to meet the changing environment surrounding Formula One, we switched to running a 100 percent Honda-owned team commencing with the 2006 season.

"Surmounting many challenges, the Honda Team achieved a Grand Prix victory in 2006, enabling Honda to receive overwhelming support from Honda fans around the world that were looking forward to greater success. It, therefore, has been an extremely difficult decision for us to come to this conclusion without having been able to fully meet the expectations of our fans.

"By making the best of what we have learned during these times of economic turmoil, coupled with the spirit of challenge gained through active participation in racing, we intend to continue with our commitment in meeting new challenges.

"Finally, we would like to take this opportunity to sincerely thank our fans and all those who have supported Honda's Formula One efforts, including everyone in the world of Formula One.

"Thank you very much."

Takeo Fukui
President and CEO
Honda Motor Co., Ltd.