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Honda to withdraw from Formula One
By Phil Huff
December 4 2008
Earlier today word got through to RealHondaF1.com that Honda Racing F1 is in trouble. An emergency meeting had been called, and the future of the entire Formula One team hinged on it. The background is a huge slump in sales in almost all markets around the world, leading to Honda being forced to lay off staff, reduce production, and temporarily close factories.

Against all this, being seen to run a Formula One team to the tune of £200m a year is somewhat counter productive.

Given all that, we understand the team is now up for sale, and that Honda Racing F1 will not be on the grid in Melbourne.

The team members were informed of this change this evening, although their jobs are safe for now. We're being told that there are buyers for the team interested in continuing, although the current economic climate makes that look somewhat unlikely.

Should a purchase not be finalised, then the team will be shut down permanently in March.

Honda Motor Co Ltd are a profitable company, but a drop in sales of greater than 30% will put a strain on any company, and Honda are sensibly taking this step to ensure a successful long term future for the entire company. The Formula One project will be sad loss to many within the firm, both in the UK and Japan, but difficult times call for difficult measures.

One thing is clear - the withdrawal from Formula One will be complete. Honda will not remain in the sport as an engine supplier, so any purchaser will need to fund an engine supply. We understand that Ferrari are already prepared to supply another team, should commercial terms be agreed.

It remains to be seen what will happen to the Honda Racing Development team in Bracknell.

No announcement has been made by Honda yet, but we expect confirmation at around midnight UK time tonight, or mid-morning in Japan.

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