Honda will stay in IRL
"It is unfortunate that current global economic challenges have necessitated the cessation of Honda's participation in Formula One racing," said the statement from Honda Performance Development in Santa Clarita, Calif. "However, Honda's U.S.-based motor sports activities are expected to continue in 2009 . . . and beyond."
Honda has been involved in CART or the IndyCar Series since 1994 and is committed to supplying engines to IndyCar teams through 2010. Honda officials have been involved in talks with the IRL in shaping engine configurations that take effect in 2011.
There are fundamental differences between how Honda's F-1 and IndyCar programs are structured. Honda owns, operates and funds its two-car F-1 program; it leases engines to IRL teams through HPD.
"HPD is charged with making money; it is a revenue-generating company," said Mark Johnson, the general manager of Indianapolis-based KV Racing Technology, an IndyCar team that uses Honda engines. "Honda's Formula One team is the only one (in the series) without a sponsor, and it is funded internally. It spends money."
The investment in the F-1 program is estimated at nearly $300 million annually. The IRL's program has been described as "self-sustaining," with expenses incurred offset by revenue from leasing engines to teams for $1 million per season. Indy Star