Honda leaves Formula One, F1 team on sale

The slowdown in the global economic scenario has forced Japanese automaker Honda to pull out of Formula One.

According to a Honda official, the company has decided to withdraw from all Formula One activities, making 2008 the last season of participation. It now will focus on its core business activities, the official added.

Showering all bame on the deteriorating world economic conditions, Honda has further added that the the car maker is planning to have parleys with the associates of the Honda racing team and its engine supplier Honda Racing Development regarding the future of the two companies. This will include offering the team for sale, it is expected.

It has been pointed out by industry observers that the decision to pullout by one of the world’s biggest car manufacturers is expected to send shock waves through F1. It may be noted that Japanese team Super Aguri, which was backed by Honda, had pulled out of F1 this year. Now with the season set to open at the Australian Grand Prix on March 29, it is seen as an incomplete line up that’s is awaiting the tracks.

According to Honda to the Honda top brass, the team was in fact getting ready for the 2009 season, but with the decision to withdraw, the participation may isn’t happening. Honda has also apologized to fans and everyone involved.

The economic meltdown has dealt a big blow to Honda, it s to be believed. The company has even gone ahead and announced job cuts in Britain and Japan attributing the decision to plummeting vehicle demand. The company has also reportedly cut its annual production of consumer cars by more than 140,000 worldwide.

Job cuts are just rising at Honda, with the company deciding to lay off as many as 760 temporary workers at four plants, including one motorcycle plant, or nearly 18 percent of its Japan temporary work force of 4,300, this month and next month .