Honda exits F1 !!

Honda pulled out of Formula One on Friday, dealing a major blow to the sport and ending a dream for Japan's number two car maker. Amid slumping car sales triggered by the global economic crisis Honda were no longer willing to invest in the Formula One team with an estimated annual budget of $500 million. Return of Honda to the sport could take time and that there are no plans to continue as an engine supplier. The Japanese manufacturer CEO said that the 2008 season will be last one for Honda in Formula One. Honda has been racing in Formula One since 2000, initially collaborating with BAR for developing the race cars. In 2006 the company switched and started developing the race cars on its own and racing with a 100% Honda owned team. In the same year Honda managed to get a Grand Prix victory. Honda also announced that it considers selling the Honda Racing F1 Team and its engine supplier, Honda Racing Development. The market depression is showing its colors all over the place. There are more surprises ahead, if the market fall continues.