Honda to pull out of F1

UPDATE #2 We are now able to confirm from our inside sources that this rumor is 'fact', the Honda F1 team is shutting down. Who will be next to see the light that the cost for F1 is ludicrous? A withdrawal by Honda will leave Jenson Button and Rubens Barrichello out of drives. The news would be a blow to the apparent incumbent Bruno Senna, nephew of the late Ayrton Senna, who has tested for the Honda team and was rumored to be replacing Barrichello. Mark C.

12/04/08 This rumor is upgraded to strong now. Multiple sources are now reporting that Honda Racing F1 is being put up for sale and that if the sale is not completed by Christmas the team will be closed down.

12/04/08 Honda Motor announced yesterday that its sales in the United States in November had fallen by 32% in comparison to a year ago. This was around the same drop as Toyota reported on Tuesday. The Honda company share price in Tokyo fell nearly five percent after the announcement. The drop in US sales takes the company back to where it was in 2000 and is the biggest drop in 27 years. Honda has already decided to freeze its plan to increase production capacity in Turkey and will delay plant construction in India by at least one year.

Honda recently announced that it is to cut production at its plant in Swindon and that this will be mothballed in February and March next year as the company struggles to cope with slowing demand for its products. The company says that there are no plans for redundancies but is offering early retirement packages in the UK.

On Thursday afternoon we received a flurry of reports that Honda F1 personnel have suddenly started applying for jobs in large numbers. We have been trying to contact Honda Racing F1 this afternoon but have thus far been unable to reach anyone. There are also reports of a decision having been taken to introduce significant budget cuts and voluntary redundancies at the Brackley team. Grandprix.com

[Editor's Note: Perhaps getting tired of looking inferior by running at the back of the grid, Honda has decided to save a lot of money that could be put to good use in places like the IRL where it can actually win a race and have their product look good.]