British Government to bail out failed Japanese team?

UPDATE #2 Honda Racing have denied reports that they are looking for a government bail-out to ensure the team makes the 2009 F1 grid.

"We have met with BERR on several occasions, to discuss how things are progressing, plus the prospects for the team and their 700 employees," a Honda spokesman told autosport.com.

"However, we have not met with them to discuss a bail-out and no discussions have taken place about a government financial bail-out."

01/29/09 (GMM) The team currently known as Honda is in talks with the UK government in the hope of qualifying for a loan.

Business Secretary Lord Mandelson has announced a multi-billion euro bailout package for the ailing car industry, and the Brackley based team confirmed it is set to apply for some of the taxpayer-funded help.

Asked whether the team qualifies, a spokeswoman for the Department for Business, Enterprise and Regulatory Reform (BERR) told the Guardian newspaper: "There is no reason why Honda Racing couldn't apply."

It is expected that any company in the automotive industry with a turnover of 27m euros or more, pledging to reduce carbon emissions and create jobs, will be eligible.

"All applications will be considered on a case-by-case basis," the BERR spokeswoman added.

01/28/09 Honda Racing could apply for a bailout from the British government, which this week said it would unlock billions of pounds in credit funding for the auto industry, it was reported on Thursday.

The team said it had had meetings with the Department for Business, Enterprise and Regulatory Reform, whose chief minister Lord Peter Mandelson unveiled the funding plan on Tuesday, the Guardian newspaper said.

'We have had meetings with BERR over the future of the team on several occasions over the past month,' the team was quoted as saying.

A BERR spokesman told the paper there was 'no reason why Honda Racing couldn't apply' for funds from the package worth up to 2.3 billion pounds (S$5 billion).

Honda Racing CEO Nick Fry has been looking for a new owner since the team's Japanese parent company said in December that it was withdrawing from Formula One because of the global financial crisis. StraitsTimes