Honda confirm immediate F1 exit

As expected, at 13.30 Tokyo time today (04.30 GMT), Honda confirmed its immediate withdrawal from Formula One, as it looks to safeguard its long-term future amid the global economic downturn.

Although Honda will take no further part in Formula One, the team will continue to be funded until March 2009, giving the team three months to find a buyer. Should a buyer not be found, the team will be shut down.

"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," said Honda's CEO Takeo Fukui. "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."

This morning's news has put further pressure on teams and the governing body to drastically cut costs and rubberstamp the future of the sport, amid fears that the grid could drop to 18 cars, should a buyer not be found for the Honda team.

"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.

"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."