F1 - HONDA TO QUIT F1
- 27 May 2013
Honda are on the brink of announcing that it is withdrawing from Formula 1. Sources reveal that team principal Ross Brawn addressed the team this evening and he explained that Honda is putting its team up for sale. They will continue to fund the team for three months, but if no buyer is found by March then the team will be closed down.
Due to the World Economic Crisis and a large downturn in car sales in both Japan and North America, Honda already has its car factories in Japan working part-time shifts, and clearly the management feel that they can no longer justify spending up to $500 million a year on F1, even if cost-cutting measures are in the pipeline. Honda’s withdrawal is a troubling development as it is one of the most profitable of the car makers currently engaged in F1. Honda however does have a track record of sudden withdrawals from F1, pulling out of in 1968, dumping Williams in 1987 to switch to McLaren and then withdrawing from F1 again in 1992.
Honda took full ownership of the BAR team in 2005 and the highlight of its brief career was Jenson Button's win at the Hungarian Grand Prix in 2006. The team has been spending big in recent years in an attempt to get back to the front of the grid. They have added 100 new staff in the last few years- taking the total to 667 - and were investing heavily in the Ross Brawn plan for the future. It is believed that their budget last year was almost $100 million more than McLaren’s and yet they finished second last in the constructors championship.
The news will be a devastating blow to drivers Jenson Button, who renewed his contract with the team shortly before the Japanese Grand Prix and Rubens Barrichello who was hoping for at least one more year in F1. With all the top seats filled and on the back of an indifferent season, Button will be feeling nervous about his prospects for 2009. Barrichello, who has also been in contact with Scuderia Toro Rosso, was waiting for an answer from Honda regarding his position next year.
If Honda can make this decision, so can the others. Toyota are also under pressure and they may use the withdrawal of their major rival as an excuse to get out, should they feel the conditions demand it. The loss of any races in North America due to Bernie Ecclestone’s exhorbitant financial demands has annoyed many of the manufacturers as this is one of their most important markets and most of them must be considering their continued participation in these difficult financial times. Max Mosely is likely to use this difficult situation to reiterate that radical cost-cutting measures need to be taken with immediate effect.
The rumour is that Ross Brawn is attempting to put together a deal that does not involve running Honda engines, but instead involves Ferrari engines as the supply formerly going to Force India is now available after their deal with McLaren-Mercedes.
Sam Snape
5/12/2008