Auto Racing: Honda pulls out of Formula 1 / IndyCar spared
The 2009 Formula 1 grid just got 2 cars smaller. The Japanese auto manufacturer announced that they will no longer compete in the Formula 1 World Championship. Citing the global economic slowdown, the auto maker announced on 12/5/2008, that it will not be a part of Formula 1 going forward. This is tough news for F1 considering Honda is the sports biggest spender.
The estimated annual budget of the Honda F1 team was $220 million dollars per year. The team which was piloted by Jenson Button and Rubens Barichello in 2008 will leave quite a void in the world’s richest sport. The combined costs of all F1 teams in 2008 exceed 1.2 Billion dollars. Costs have been a main concern with many F1 teams over the past few years as the sponsorship packages and contributions from the worlds elite have slowed.
Sadly, this also could put a damper on one of F1’s most refreshing stories. Bruno Senna, the nephew of the late Ayrton Senna, was to take over the vacated seat of Rubens Barichello in 2009. That now looks like an impossibility. Honda has said they would try to sell the team, however in this market condition, finding a buyer seems increasingly more difficult.
IN RELATED NEWS:
The IndyCar Series, which is powered solely by Honda engines, has been spared any interruption…at least for now. Honda has an exclusive contract with the IndyCar Series to provide the series with it’s engines. A pull out of Honda from the ICS would be crushing to the series, and the Indianapolis 500.
The agreement with the ICS is a leasing agreement and it is basically a financial wash for the Japanese auto maker. Honda leases it’s engines and technicians to the IndyCar Series. Honda outlays only marketing capital for the series and the liabilities associated with it’s involvement in the sole American Open Wheel series is somewhat controllable.
This is great news for all IndyCar fans.
EJ’s two cents:
Look, the financial crisis shows signs of weakening each day. This move by Honda came 
as a shock to everyone, but perhaps the next ones to be worried are my NASCAR fans. GM, Ford, and Chrysler are on their death beds. How can these companies continue to pour money into motor sports when they are facing bankruptcy and worse? I don’t know…but if things don’t get any better, be ready for anything. At this point, nothing is off the table. The safety of the Daytona 500, and the Indianapolis 500 are there today.
Let’s hope it’s there come race day.
Tags: Chrysler, economy, Ford, Formula 1, Gm, Honda, IndyCar
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