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Discussion Starter #1
:cry

But we've seen this before. :ninja



Motor racing-Honda given a month to sell F1 team or close

Thu Dec 4, 2008 3:36pm EST


LONDON, Dec 4 (Reuters) - Honda have put their Formula One team up for sale and will close it down if no buyer is found by the end of the year, a senior source at a rival team told Reuters on Thursday.

"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 (FOTA).

(Reporting by Alan Baldwin, editing by Ken Ferris)
 

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Cuz their car sales are down like 30%, the Yen is worth more which makes your exported goods more expensive and the global economy is taking a shit, so throwing money into F1 isn't a sound business plan.
 

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Plus cost cutting measures in F1 haven't ever been successful. Limiting testing periods and things of that nature aren't nearly enough of a savings.

Having to engineer both an engine and chasis on top of concurrently running a functioning racing organization is horribly expensive. :(
 

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Plus cost cutting measures in F1 haven't ever been successful. Limiting testing periods and things of that nature aren't nearly enough of a savings.

Having to engineer both an engine and chasis on top of concurrently running a functioning racing organization is horribly expensive. :(
ill do it for free
 

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The FIA reacts

DECEMBER 5, 2008

The FIA reacts

The FIA has reacted to the news of Honda's withdrawal with a letter to the teams saying that its tender processes are now complete and that Cosworth, together with Xtrac and Ricardo Transmissions will supply a complete Formula 1 power train beginning in 2010.

The cost of these deals will be a $2.4m downpayment plus $8m a year for the 2010, 2011 and 2012 seasons. These prices are based on four teams signing up for the engines and include 30,000 km of testing. The annual cost will reduce if more teams take up the option. Neither the engines nor the transmissions will be badged. This gives teams the option of using the standard engines, building an identical engines themselves, having been supplied with the technical specifications or they can continue with their own engines but with agreement to accept parity with the standard engines. Teams will still have to use the standard transmissions.

The FIA says that this will enable the independent teams to survive and help teams if they need to replace departing manufacturers. There will then be a new state-of-the-art high tech engine, which could be in Formula 1 as early as 2013 if the car industry has sufficiently recovered by that point. Teams have until December 11 to decide what to do but the FIA says that if fewer than four teams go for standard engines the price will go up but will still be available.

This sounds like a sensible compromise for all concerned.
 

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F1 is fail.
I hope you're wrong, but if the spiraling costs don't get put into check then thigns are gonna get much worse. The same things forced Champ/IRL to finally come together. Even NASCAR has experienced a loss in advertising revenue.:(
 

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I'm wondering how long nascar is gonna last with ford chevy and dodge all taking a shit
 

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CorporateDecember 5, 2008

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

December 5, 2008 – 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% 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.
 
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