Auto Company holds spending to responsible levels

[Viking Prince]

Global crisis ends Honda F1 dream

Honda is pulling out of Formula One, blaming the world economic crisis for plans to sell its team.

Sources told BBC Sport the team were "optimistic" they would continue, but an investor had not yet been found.

The decision leaves Englishman Jenson Button and 2009 team-mate Rubens Barrichello without drives, with only a few mid-ranking seats still available.

Honda, which spent more than £300m a year on F1, said it would also no longer supply the sport with engines.

I guess Honda wants to behave as a good corporate citizen and not to go knocking on the US Treasury doors for a bailout. Cutting out £300m seems a good start on belt tightening -- I wonder if GM, Chrysler, and Ford have thought to do the same? Hmm?

[Ishoss]

Does GM, Chrysler and Ford have a F1 team?

I didn't think there was any American teams, but I don't really watch the "sport"

[the_mango55]

Honda doesn't need a bailout.

They aren't crippled by the United Auto Workers.

[Viking Prince]

Honda doesn't need a bailout.

They aren't crippled by the United Auto Workers.

So the definition of when federal intervention occurs is if the UAW has a contract?

btw -- F1 is feeling pressure to reduce costs by others also:

Mercedes wants F1 to cut costs by 50 percent

BERLIN (Reuters) - German carmaker Mercedes said on Friday Formula One teams must cut costs by at least 50 percent over the next two years although its own financial position remained solid.


"Within the Formula One Teams Association (FOTA) we're working very hard on measures to cut costs, and over the next two years we must achieve cuts of at least 50 percent," said Norbert Haug, the head of Mercedes Motorsport which powered Lewis Hamilton to victory in this year's championship.


"Our Formula One involvement is built on financially solid foundations and is in large part financed by our sponsoring partners," Haug added in response to an announcement by Japanese rival Honda that it was pulling out of the sport.


"This pullout is very sad," he said. "It only shows how important the cost-cutting measures are that we've been advocating for more than five years, and which have only been realised to a small degree.

"Mercedes-Benz's contribution is cost-efficient, the resonance in the media and in the public which last season and Lewis Hamilton's win generated was worth many times our financial investment," he added.


CUTTING COSTS


In a separate statement, German carmaker Audi said its U.S. factory team would not take part in the American Le Mans Series, despite a series of wins since it first entered in 2000.


Another Japanese team Toyota said it was also committed to cutting costs.


"We are contributing to the FOTA activities which will achieve significant cost reductions whilst maintaining the spirit of the sport," a team statement said. Continued...

[shadyrome]

Honda is japanese corporate why would they knock us door for bail out ? :S

[Nietzsche]

Honda is japanese corporate why would they knock us door for bail out ? :S

I may be wrong, but I think the OP is thinking about NASCAR.

In related news, Citibank kept it's $400 million stadium sponsorship. Your bailout money at work.

[Sphere]

Ford made a profit during the first quarter of the recession, and most likely won't need any government money if the GM stays afloat. Chyrsler is just a bastard step child that should get bought out.

For all the hating agaisnt Ford and GM, they really did turn their companies around the past few years. Ford was ahead of the game because it hit bottom first, but GM was following suit until the recession hit.

I think, like in the Chrysler bailout, the taxpayer is set to make money on these loans.

[Yorkshireman]

I may be wrong, but I think the OP is thinking about NASCAR.

Its the Honda backed Formula 1 team, based in England.