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05/12/2008
Honda Announces Plans To Quit Formula One
Honda has announced plans to pull out of Formula One championship events, if they cannot find a buyer by the end of the month.
Staff at the motor company's plant in Brackley, Northamptonshire, has been warned they face redundancy with the news the team has been put up for sale.
The global economic downturn has forced the team's parent company to reduce costs, and they have decided to sell off the Formula One in 2009.
It has been reported Honda's 600-strong F1 staff first heard the news at a meeting.
Honda's President and Chief Executive Takeo Fukui said: "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 optimise the allocation of management resources, including investment regarding the future, we have decided to withdraw from Formula One participation."
He added: "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."
Honda has been involved in F1 since 1964. They have only won one race in the past three seasons, with team member Rubens Barrichello achieving one podium position last year.
It is understood British Honda driver, Jenson Button, is likely to be protected as he has a contract with the team, and therefore could continue driving for a new owner.
According to media coverage this morning, the saving for Honda from the withdrawal from F1 will be somewhere between £100 million and £200 million, which is only about the same figure a motor company would have to invest if it was giving a popular model a design 'facelift'.
However, given recent news that Honda will halt production at its Swindon plant for two months, next year, due to the "dramatic change" in the global market, they must be seen to be making savings to offset such cutbacks.
The Japanese car giant said that the plant's 4,800 employees will be laid off for 50 days - the duration of the closure - although staff will receive basic pay, the company said.
See: Honda Halt Production for Two Months
(JM)(BMcC)
Staff at the motor company's plant in Brackley, Northamptonshire, has been warned they face redundancy with the news the team has been put up for sale.
The global economic downturn has forced the team's parent company to reduce costs, and they have decided to sell off the Formula One in 2009.
It has been reported Honda's 600-strong F1 staff first heard the news at a meeting.
Honda's President and Chief Executive Takeo Fukui said: "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 optimise the allocation of management resources, including investment regarding the future, we have decided to withdraw from Formula One participation."
He added: "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."
Honda has been involved in F1 since 1964. They have only won one race in the past three seasons, with team member Rubens Barrichello achieving one podium position last year.
It is understood British Honda driver, Jenson Button, is likely to be protected as he has a contract with the team, and therefore could continue driving for a new owner.
According to media coverage this morning, the saving for Honda from the withdrawal from F1 will be somewhere between £100 million and £200 million, which is only about the same figure a motor company would have to invest if it was giving a popular model a design 'facelift'.
However, given recent news that Honda will halt production at its Swindon plant for two months, next year, due to the "dramatic change" in the global market, they must be seen to be making savings to offset such cutbacks.
The Japanese car giant said that the plant's 4,800 employees will be laid off for 50 days - the duration of the closure - although staff will receive basic pay, the company said.
See: Honda Halt Production for Two Months
(JM)(BMcC)
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