Honda quits F1

As a cost-cutting measure, this season will be Honda's last in Formula One.

This morning, Takeo Fukui, President and CEO of Honda announced that his company would be withdrawing from Formula One, making this season its last.

The sudden announcement comes amid speculation that Honda will further cut vehicle production in line with global demand.

Fukui said: "This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the sub-prime problem in the United States, the deepening credit crisis and the sudden contraction of the world economies."

Although Honda has struggled to compete at the front of the grid since it took over the BAR team in 2006, it has an illustrious history in the sport, with six constructors' titles and five drivers' championships accrued from 1983 to 1993.

With major rule changes coming into force over the next few years, Honda would have had to spend huge cash reserves in an attempt to compete with the best teams in the sport.

Fukui's statement ended with thanks to supporters: "we would like to take this opportunity to sincerely thank our fans and all those who have supported Honda's Formula One efforts, including everyone in the world of Formula One."

British F1 driver, Jenson Button, will be left without a race seat for the 2009 season if the team does not find a buyer.

Shane O' Donoghue