HONDA SET TO REVEAL F1 EXIT PLANS:

Formula One is bracing itself for an announcement by the Honda Racing team on Friday morning that could pave the way for one of grand prix racing's biggest names to exit the sport.

Amid the worldwide financial downturn and the impact that has had on Honda's car sales, it is understood that the Brackley-based team's future is now in serious doubt.

Insiders have told autosport.com that the team's senior staff were called for a meeting at the factory on Thursday afternoon and informed that Honda in Japan were no longer willing to bankroll the outfit.

It is suggested that the team will be put up for sale - and if no buyer is found by March then the manufacturer will simply pull the plug and withdraw from the sport.

Amid the current financial climate, it is unclear where Honda Racing would hope to find a buyer willing to support a Formula One team - with budgets already in excess of £100 million per year.

There are suggestions, however, that Honda may be willing to offload the team free of charge to anyone willing to support it - and they could even continue to supply engines for a period of time until another technical partner is found.

However, sources have suggested that team principal Ross Brawn is already eyeing a tie-up with Ferrari for power-units should a buyer be found - with the Italian manufacturer having spare capacity now after ending their deal with Force India.

It is understood that Brawn and F1 CEO Nick Fry are scheduled to fly to meetings in Tokyo on Monday to discuss the future of the team with Japanese bosses - and especially define what happens if no buyer is found.

Honda Racing remained silent about the speculation on Thursday evening, with neither press officers nor senior team personnel available for comment. It is understood the staff informed of the decision were told not to discuss the matter prior to an official announcement being made.

It is expected Honda will issue a press release early on Friday morning revealing their plans. It comes after a challenging year for the team, which had begun a rebuilding process under the leadership of Brawn.

Any pullout by Honda Racing will send shockwaves through F1, and cast question marks over the future of other manufacturers' longterm participation. It would also come several months after FIA president Max Mosley warned that the sport was unsustainable at the moment because of the high costs needed to compete.

It would also mean the grid being reduced to just 18 cars, and would leave drivers Jenson Button and Rubens Barrichello without seats.

SOURCE: Autosport.com - http://www.autosport.com/news/report.php/id/72319

ED: Confirmation of withdrawal below.

This is terrible news, I really wanted Honda to do well (that advert for Impossible Dream is still high on my favourite adverts around). Its a shame how this has happened and I dont expect it to be the last, I feel the car manufacturers are feeling the problems of the economic problems and pumping hundereds of millions into a low mid table side which is out performed by a customer with a far lower budget must be bad.

Will Toyota be joining Honda? I would say they are most probably next as they have been not at the front like Honda but they want to be and have invested loads to where they should be. Its a sorry state when this happens in the sport.

Redders, it looks like our hope for Button to be WDC are gone :/  

Maybe now its easier to see why they had to pull the plug on Super Aguri. 

Whats worrying, is Honda are one of the most profitable teams in the sport, so if they're pulling out, then other teams must be thinking about it!! Toyota might see this as an opportunity to pull out, and Williams seem to be in trouble too. 

James Allen has said on the Itv-f1 website that the package that is being put up for sale includes Ferrari engines, not Honda ones. So what the new buyer will need is a driver like Bruno Senna, someone whos going to bring in a LOT in sponsorship. 

Redders, it looks like our hope for Button to be WDC are gone :/TannerRules

Not just that, but if he doesn't make it next year... there's gonna be a massive hole in my love for the sport gone from my heart, and I just don't know if Hamilton can fill that gap, World Champion or not.

HONDA QUIT F1:

Honda have announced that it plans to sell its Formula One team after the Japanese car manufacturer's decision to withdraw from the sport in light of difficult conditions in the global auto market.

The current Honda team was formed in 2000 after the company took over the former BAR squad, transforming it into a works team in 2006. Honda now hope to have new owners in place ahead of the 2009 season.

Team principal Ross Brawn and team CEO Nick Fry are expected to be closely involved in the evaluation of potential buyers, with speculation also arising that Brawn could call on contacts at his former team, Ferrari, to help secure a new engine supply deal.

Honda's original Formula One involvement began in the 1960s, American Richie Ginther scoring their maiden win at the 1965 Mexico Grand Prix. Absent from competition in the '70s, they went on to several title successes as engine suppliers in the '80s and '90s with the likes of Williams and McLaren.

Their 2006 works return started well, with Jenson Button winning the Hungarian Grand Prix en route to fourth in the constructors' championship. However, the team lost their way the following year, scoring just six points from 17 races.

Brawn's subsequent arrival was heralded as the start of a new era, but came too late to have significant impact on Honda's 2008 campaign, which saw them finish ninth in the final standings.

Neither of Honda's race drivers, Jenson Button and Rubens Barrichello, has yet been confirmed for 2009 and the UK-based team recently evaluated 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."

SOURCE: Official F1 Website

JAMES ALLEN'S VERDICT:

Honda's sudden and unexpected withdrawal from Formula 1 due to the global financial crisis sent shockwaves through the sport on Friday morning and has prompted fears that more teams could follow suit.

James Allen was one of the first journalists to break the news on Thursday evening and here analyses the reasons behind Honda's decision, the FIA's likely response to F1's deeping cost crisis and Jenson Button's uncertain 2009 future.


Honda announced this morning that it is withdrawing from Formula 1.

It is putting its team up for sale and will continue to fund the team for three months, but if no buyer is found by March then the team will be closed down.


A surprise decision

There is a sense of shock in Japan about this.

Apparently there have been rumours out there during the last week that Toyota was building up to make an announcement of this kind, but not Honda.

All eyes are now on Toyota to see what their next move will be.

Honda president Fukui made the announcement in the early hours of this morning.

My sources suggest that this was quite a sudden decision, despite rumours that all was not well at Honda.


Honda's car sales slump

This is all about trade, or lack of it.

It seems that the November sales figures arrived on Fukui's desk on Thursday and were far worse than expected.

Against that backdrop Fukui took the decision.

Interestingly Honda had held a press conference on Thursday to announce a new car and he made no mention of F1 then.

When quizzed about this after the withdrawal announcement on Friday morning Fukui said that it had been a sudden decision.

Fukui is a big supporter of F1 and has attended many races, taking a direct personal involvement in the team and with the drivers.

This is a massive blow to Honda's self esteem as racing is a fundamental part of the DNA of the company and the F1 programme is the proving ground of its most talented engineers, who then move on to road car operations.

Also on Thursday there was a FOTA meeting in London and the other teams were informed.

Honda has its car factories in Japan working part time shifts, owing to the collapse in the automobile sales market and clearly the management feel that they can no longer justify spending up to £150 million a year on F1, even if cost cutting measures are in the pipeline.

Too much time has been wasted in agreeing a package of cost saving measures  - as the FIA and also the Williams management have been warning for months.

They are entitled now to say "I told you so", but will take no pleasure from doing so.


The FIA's response

The news is still a major shock, because Honda has until recently been one of the most profitable of the car makers currently engaged in F1.

If they can make this decision, so can the others.

This is a major moment for the sport and I imagine Bernie Ecclestone and Max Mosley will be ringing around frantically, ensuring that the remaining teams are solid.

Mosley will now swing into action.

He will want to make sure that radical steps are taken immediately to strip costs out of the sport shore up the health of sport and I expect him to use Honda's withdrawal as a trigger for making some big changes in the next week or so, certainly with a World Council meeting on December 12th poised to approve whatever he feels is appropriate.


Button's uncertain future

Honda has a track record of sudden withdrawals, pulling out of Williams in 1987 to switch to McLaren and then withdrawing from F1 altogether in 1992.

The news will be a savage blow to Jenson Button, who had recently renewed his contract with the team shortly before the Japanese Grand Prix.

With all the top seats filled and on the back of an indifferent season, Button will be feeling nervous about his prospects for 2009.

Button gave the team its best moment in F1, winning the Hungarian GP in 2006.

The ray of hope for Jenson is that if other teams withdraw and the remaining teams are forced to run three cars, he might be able to land a third McLaren seat or something at one of the other teams.

Peter Sauber has always been a Button fan, so BMW Sauber is also a possibility. But that's a long way off at the moment.

SOURCE: ITV-F1

FRY CONFIDENT OF FINDING BUYER:

Honda Racing CEO Nick Fry is optimistic that a new owner will be found for the team following Friday's announcement that parent company Honda are withdrawing from Formula One racing.

The Japanese car giant has put the team up for sale and Fry and other senior management are now in a race against time to find a buyer ahead of the 2009 season. However, he says they have already received several serious enquiries.

"In the last 12 hours we've had three serious people come and suggest they'd like to buy the team," Fry told British broadcasters, the BBC. "We're one of the best-funded teams and have the best assets and resources in the pit lane - we'll be quite a desirable asset for somebody."

Honda have experienced only limited success in recent years, finishing a lowly ninth in the 2008 constructors' championship, but any potential buyer would inherit a car developed under the leadership of team principal Ross Brawn, who joined the UK-based team at the end of 2007.

In his previous role as Ferrari technical director Brawn was key to five Michael Schumacher championships and Fry believes the 2009 Honda - the first designed entirely under Brawn's watch - should make the team an attractive proposition.

"We're very hopeful, as are most commentators, that we'll take a big step up," he added. "It's a big opportunity for somebody."

Fry also confirmed that Jenson Button has a 2009 contract with the team, while their second race seat - filled by Rubens Barrichello this season - remains undecided.

SOURCE: Official F1 Website

WOW :shock:

I saw this breaking last night on the BBC News and was stunned. This seems like such a sudden decision.

Having taken on Ross Brawn I had thought they were really investing in their future and that next year was going to be a much stronger year for them. Button had already resigned his contract, only the second seat had still to be confirmed and you can do much worse than having Rubens on your team. Also presumably a lot of money has already been spent over the last year on preparing for and designing the 2009 car, which is now all stuck in limbo.

If a team with so much financial backing can suddenly disappear it makes the future look very bleak for the likes of Toyota, Williams and Force India.

The Impossible Dream - a fitting eulogy :(

Seeing more images on the news I've noticed something

While it was all a nice publicity stunt to not have any advertising on their car, having their earth dream design instead - hasn't this backfired spectactularly?

Deciding they don't need the income from having sponsorship on their car, and then turning round and blaming costs as the reason for leaving, surely Honda have shot themselves in the foot.

Honda boss upbeat over team sale

Honda Racing boss Nick Fry says three potential buyers for the Formula One team have emerged since the Japanese company said they were pulling out.

Honda revealed on Friday that they were quitting for financial reasons.

"In the last 12 hours we've had three serious people come and suggest they'd like to buy the team," he told the BBC.

"We're one of the best-funded teams and have the best assets and resources in the pit lane - we'll be quite a desirable asset for somebody."

Despite a sizeable budget, Honda have struggled in recent years, their sole victory of the modern era coming at the Hungarian Grand Prix in 2006.

But Honda's investment in the project means the team - based in Brackley, Northamptonshire - is a rare opportunity for anyone looking to enter F1 to buy a state-of-the-art facility at a knock-down price.

BBC sports news correspondent Adam Parsons says the team is for sale for £1 - although any buyer would need to find a budget in the region of £40m to operate it in 2009.

They have spent much of 2008 working on their 2009 model car, designed under the leadership of Ross Brawn, the man who masterminded seven world titles for Michael Schumacher.

Brawn said: "Honda are keen to preserve the team. It's a fantastic opportunity for someone to step into what will be one of the most competitive teams in F1 next year.

"Fortunately it gives us time to react. If it had happened closer to the season it would have been much more difficult."

Brawn emphasised that Honda had effectively written off 2008 from a very early stage in the season to concentrate on their 2009 design.

"It's a fantastic opportunity for someone to step into what will be a very competitive team next year," he said.

"The facilities here are one of the best in Formula One, the workforce is definitely one of the best in Formula One and we have got a great car design for next year.

"I am sure we will get a lot of interest. It is filtering that out into serious proposals and understanding what level the investors or new owners would want to operate at.

"We have got aspirations to be at the front of the grid and we want to find people who have the same ambitions."

Former F1 team boss Eddie Jordan, who will be a pundit on the BBC's F1 coverage next year, said: "Every couple of decades some real jewel in the crown comes along that you could say, 'wow if I had the money this is absolutely the deal for me'.

"This is one of those occasions. You have the best facilities. You have two outstanding drivers who both know how to win, you have Ross Brawn who has won seven world titles with Michael Schumacher.

"Having listened to what Ross Brawn said earlier, I feel he has a good indication that there are some private buyers there."

Although Fry admitted better race results would have helped their situation, he insisted they were victims of the wider world financial crisis.

"All motor companies have been struck very hard by falling sales," he said.

"Clearly, more success on the track would have been nice but it's a bigger picture issue and this year we've been developing a car for next year.

"We're very hopeful, as are most commentators, that we'll take a big step up. It's a big opportunity for somebody.

"We have 700 people working for the team. It's business as usual - we have to go through the usual three month consultation period with staff to decide the future of the company and during that period we're hoping we'll find a buyer."

Fry insisted that Englishman Jenson Button, rated as one of the finest drivers in F1, was still under contract.

"Jenson Button has a contract with team for next year," Fry said.

"If we can find new owners we hope he can continue with the rest of them.

"He's been very much an integral part for years, he's a big asset which hopefully will make the team even more attractive, the second driver position is undecided."

Nick Fry Interview

BBC SPORT

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.

OFFICIAL F1 WEBSITE

Found by satanshelper on the UK Board:

Facebook group: Let's buy the Honda F1 Team

FOTA HOPES HONDA FINDS A BUYER:

The remaining members of the Formula One Teams' Association (FOTA) have expressed their desire to see a buyer come forward to take over Honda's Brackley outfit.

Formula 1 faces the prospect of reducing to a 18-car grid for next season should a rescue package not be agreed for the Honda team in the next three months, following the Japanese manufacturer's decision to walk away from F1.

FOTA, which Honda was a member of until its immediate withdrawal on Friday, issued a statement saying it hoped the team would still be around for the 2009 season.

"The chairman of FOTA, Luca di Montezemolo, has been informed by the top management of the Honda Racing F1 Team of the decision to retire from the FIA Formula One Championship in 2009," the statement read.

"FOTA wishes that the technologically advanced expertise of the team based in Brackley is not dispersed and that the sporting challenge is resumed soon."

Ferrari president di Montezemolo also praised the abilities of Honda Racing's management duo, which includes his former technical director at Ferrari, Ross Brawn.

"Chairman Montezemolo, interpreting the feeling of all FOTA Members, expressed his greatest appreciation for the professional and human qualities of Ross Brawn, Honda Team Principal, and Nick Fry, Honda Racing F1 Team CEO."

Honda' shock announcement came just a day after FOTA members met in London to agree a package of cost-cutting proposals which it will present to the FIA.

A statement following that meeting said the group had agreed to implement "substantial cost cutting for 2009 and 2010" and further changes to spice up the Formula 1 show.

It also announced it had unanimously agreed to introduce a new lost-cost engine in 2011.

SOURCE: ITV-F1

BUTTON HOPEFUL OVER HONDA FUTURE:

Honda driver Jenson Button is confident the team will be able to find a buyer and continue to compete in Formula One.

The Northamptonshire-based outfit are looking for new owners after the Japanese manufacturers decided to quit the sport for financial reasons.

"With the team and the attitude we have I can't believe there is not anyone interested in buying it and helping us out," said 28-year-old Button.

"The team are working their backsides off to produce a great car for 2009."

Team chief executive Nick Fry told the BBC he has had three approaches already from potential new owners.

However, a January deadline has been set to find an investor and staff at the team's Brackley headquarters have been told to expect redundancy letters before Christmas.

"I found out the same as everyone did on the team, so it's just as much a shock for me as for everyone else," Button said when first discovering the news.

The Briton has been linked with a switch to Toro Rosso or Williams but was in optimistic mood after visiting the Honda team headquarters.

"I headed up to the factory to see what was going on, not in a very positive mood, but after half an hour with the whole crew, in every department, I realised we can't change what's happened.

The only thing we can do is stay positive and that's what we are doing."

Button offered a message to potential investors and stated: "What they'll get is a great team with excellent facilities.

"With the leadership of team principal Ross Brawn and the whole team as they are we can come through this and be on the grid in 2009."

SOURCE: BBC SPORT

ED: Link includes Button talking about staying positive, and Murray Walker on Honda, Button and the potential 3-car clause.

...there's gonna be a massive hole in my love for the sport gone from my heart, and I just don't know if Hamilton can fill that gap, World Champion or not.

Redders1989

Couldn't agree more. With DC retired, Anthony Davidson pulling out earlier this year and now Jenson gone, there will be no 'real' british talent in F1 next year. I would like to offer him and Rubens, another great driver, all the best in the future. Rest in Peace, Honda.

MOSLEY: HONDA WILL HELP OUT BUYER IN '09:

Max Mosley has revealed that Honda is prepared to offer assistance to a buyer for its Formula 1 team during 2009.

The Japanese car giant put its Brackley-based operation up for sale at a cut price last week and will close it down unless it finds a new owner in the early part of next year.

Honda Racing CEO Nick Fry revealed that it has already received interest from three potential investors, with David Richards's Provide organisation one party linked to a possible swoop.

But while the operating costs of running the team, even with F1's impending cost-cutting measures from 2009 and the likelihood of a slimmed down workforce, could put interested parties off in the current economic climate, Mosley says he understands Honda would be willing to lend some support during the first transitional year under new ownership.

"If a serious buyer came along then Honda would help to keep it going," the FIA president told the Press Association at the Motor Sport Business Forum in Monaco.

"Any person would then be on their own in 2010, but they would get some help in 2009. That's my understanding.

"It becomes a reasonable proposition for an entrepreneur, providing he is satisfied we [the FIA] are going to get the costs down in 2010."

Mosley and the teams have since agreed proposals which will see "very significant" cost-cutting measures for 2009, and measures that will hit all of the FIA's objectives for 2010.

Speaking before Wednesday evening's landmark announcement, in his keynote speech at the Motor Sport forum Mosley conceded the sport was largely at the mercy of the state of the car industry as to whether more teams would follow Honda's exit.

"Honda pulled out because of falling car sales and there is no guarantee that these falling sales, which affect all manufacturers, will not drop further," he said.

"If they do, then we have to prepare for other manufacturers to pull out not only from Formula 1 but other areas of motor sport as well."

He added that the sport needed to get back to a culture of innovation rather than spending millions on chasing tenths of a second in small areas.

"What is wrong with Formula 1 today was wrong before any of the present economic problems cropped up," he said.

"Essentially it's the rules, which have become ever more restrictive compressing the work of the engineers into an ever smaller area.

"As such, success in F1 today consists of optimizing every single part of the chassis to the ultimate degree and that is both extremely expensive and utterly pointless."

SOURCE: ITV-F1

RICHARDS MULLING HONDA RESCUE DEAL:

David Richards has shown interest in brokering a rescue deal for Honda Racing, after flying out to the Middle East on Saturday to talk with potential investors.

Honda has been in search of a buyer for its Brackley-based squad since it announced its shock withdrawal from the sport earlier this month.

Richards has made no secret of his ambitions to return to Formula 1, after managing both Renault and BAR in the last decade.

His company Prodrive attempted to join the F1 grid as a McLaren customer outfit last season but the deal was vetoed by other teams in a backlash against customer cars.

Richards says that if the circumstances are right, he knows a number of potential backers who want to be involved in Formula 1.

"There are a group of people in the Middle East who want to support a Formula 1 entry for me and have been very specific about it for a year now," Richards told the Mail on Sunday.

"But we have to agree when the timing is right."

Richards is realistic about the financial burden of taking on a grand prix team and warned that any deal would not be taken lightly.

"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," he said.

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

Last week Japanese car manufacturer Subaru pulled the plug on its World Rally Championship team run by Prodive.

Richards said the withdrawal was a sign of the times but insisted it has not altered his F1 ambitions.

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

"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 1: 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."

SOURCE: ITV-F1