Honda out of F1

[Phil]

http://www.itv-f1.com/News_Article.aspx?id=44707

[bmwqc]

http://www.itv-f1.com/News_Article.aspx?id=44707

Not surprising. With the current economic environment, it is no longer politically correct to spend that kind of money (like a couple hundred mil per year) and worse still having had little or no success to show for all that money and effort.

[Gregster]

I wonder if not having a race in North America had something to do with it as well.

[Andrei]

Proposing single engine supplier makes a lot of sense for Honda to stay in F1.

Every other component is made by someone else. Shocks, brakes, belts, spark plugs, etc. The engines are what car companies make themselves and then source the other components. If they don't make the engine what is exactly their motivation to be in F1?

Hopefully F1 will fold quickly so that something new will emerge without Max and Bernie.

[bmwqc]

Hopefully F1 will fold quickly so that something new will emerge without Max and Bernie.

Perhaps we are witnessing the start of an exodus of manufacturer teams.

[dcaron999]

News from Reuters
BMW sales plunge, Honda quits Formula One



05/12/08

By Michael Shields and Alastair Himmer
FRANKFURT/TOKYO (Reuters) - Global sales at BMW, the world's top premium carmaker, plunged by a quarter in November, and Honda backed out of Formula One racing on Friday as the economic downturn exacted a mounting toll on automakers.
With even well-heeled consumers keeping a tight grip on their wallets, group vehicle sales at BMW fell 25.4 percent to 96,570 units, led down by a 26.2 percent drop at the flagship BMW brand, it said.
Car sales across the globe have plummeted as consumers curb spending in the face of mass lay-offs and a credit crunch, pushing big U.S. carmakers to the brink and heaping pressure on their foreign rivals, too.
In Germany, Europe's biggest auto market, new car sales are expected to hit post-reunification lows this year and next before recovering somewhat in 2010, the VDA auto industry association forecast this week.
In Japan, Honda Motor Co <7267.T> delivered a major blow to Formula One by withdrawing from the sport with immediate effect.
Japan's number two carmaker is seeking to cut costs to combat the global economic crisis and concluded it would no longer bankroll the Formula One team and its estimated annual budget of $500 million.
Honda Chief Executive Takeo Fukui told a news conference a return to the sport could take time, and that there were no plans to continue as an engine supplier.
"This difficult decision was taken recently and was made in light of the quickly deteriorating operating environment facing the global auto industry," Fukui told reporters.
"Honda must protect its core business activities and secure the long term as widespread uncertainties in the economics around the globe continue to mount."
BMW shares were down 2.7 percent in Frankfurt, and Honda's shed 1.9 percent in Tokyo, while the DJ Stoxx autos index <.SXAP> was down 1.8 percent.
Detroit remains the epicenter of the consumer earthquake shaking the automotive world.
The chief executives of General Motors Corp and Chrysler LLC told the U.S. Congress on Thursday they would consider restarting merger talks if that was what it took to win their slice of up to $34 billion in emergency U.S. government aid.
"I would be very willing to look at it seriously," GM CEO Rick Wagoner told the Senate Banking Committee, adding that merger talks earlier this year were dropped on concerns GM did not have the financing to merge with Chrysler.
Chrysler CEO Robert Nardelli said his job would likely be the first to go in a merger with GM, but if that would save Chrysler and its workers, "I would do it."
The chiefs of the Big Three automakers, including Ford Motor Co CEO Alan Mulally, pledged to refocus on higher fuel efficiency vehicles and lower production costs.
But they encountered deep skepticism among lawmakers who are suspicious of such promises, given the companies' past failures to wean themselves off gasoline guzzlers and to make innovative cars that consumers want to buy.
"I don't trust the car companies' leadership," said New York Democratic Sen. Charles Schumer at the hearing. But in a comment reflecting many lawmakers' sentiments, he added, "We can't let the industry fail.
(Additional reporting by John Crawley and Kevin Drawbaugh in Washington, editing by Will Waterman)
© Reuters Limited. All Rights Reserved.

[johnmdanskin]

I think they should change the rules to permit only showroom stock cars with MSRP less than $150,000 US. A hardship for ferrari maybe, but nissan would be all over it, dodge, gm, porsche, bmw (could produce something really cool), ford. Any mass produced tire costing less than $2000/set. 2 sets of drys, 2 sets of damps, and 2 sets of rains for a weekend.

Also, limit crew to 4 guys. 1 caterer. 1 Truck. 2 computers and two more guys in the pits wearing uniforms. Everyone else is in the stands with no telemetry.

Also limit driver salaries to $200K/yr. Unlimited sponsorship from anyone who -isn't- sponsoring the team.

That's probably enough.

8-)

[McNihil]

I think they should change the rules to permit only showroom stock cars with MSRP less than $150,000 US. A hardship for ferrari maybe, but nissan would be all over it, dodge, gm, porsche, bmw (could produce something really cool), ford. Any mass produced tire costing less than $2000/set. 2 sets of drys, 2 sets of damps, and 2 sets of rains for a weekend.

Also, limit crew to 4 guys. 1 caterer. 1 Truck. 2 computers and two more guys in the pits wearing uniforms. Everyone else is in the stands with no telemetry.

Also limit driver salaries to $200K/yr. Unlimited sponsorship from anyone who -isn't- sponsoring the team.

That's probably enough.

8-)

You got my vote ! John FTW !!! :D

[Gregster]

I think they should change the rules to permit only showroom stock cars with MSRP less than $150,000 US. A hardship for ferrari maybe, but nissan would be all over it, dodge, gm, porsche, bmw (could produce something really cool), ford. Any mass produced tire costing less than $2000/set. 2 sets of drys, 2 sets of damps, and 2 sets of rains for a weekend.

Also, limit crew to 4 guys. 1 caterer. 1 Truck. 2 computers and two more guys in the pits wearing uniforms. Everyone else is in the stands with no telemetry.

Also limit driver salaries to $200K/yr. Unlimited sponsorship from anyone who -isn't- sponsoring the team.

That's probably enough.

8-)

So basically touring car racing :p

[bmwqc]

Looks like Max is already getting a head start on the single engine supplier BS.



http://www.planet-f1.com/story/0,18954,3213_4591276,00.html

[Phil]

STATEMENT FROM BMW TO FORMULA ONE EXIT OF HONDA 12/05/2008 Dr.
Klaus Draeger, Member of the Board of Management of BMW AG, Development:
"It is with regret that we learnt of Honda’s decision. It has no bearing on
BMW’s involvement in Formula One.

Our F1 involvement is an integral part of the company strategy. There is no
better platform than Formula One for demonstrating our brand values. BMW,
moreover, makes targeted use of the Formula One project as a technology
accelerator for series production.

With the BMW Sauber F1 Team, we have from the start focused on high
efficiency and have achieved our successes with a compact and powerful team. The
cost-benefit ratio is commensurately positive. The measures now proposed by FOTA
for significant cost cuts starting as early as season 2009 are a further
important contribution."

[bmwqc]

In BMW's case, the budget is easier to swallow when the team is competitive and racking in the points. Honda spent more than BMW in 2008 and came away almost dead last in the constructors' championship. Only Force India did worst.



STATEMENT FROM BMW TO FORMULA ONE EXIT OF HONDA 12/05/2008 Dr.
Klaus Draeger, Member of the Board of Management of BMW AG, Development:
"It is with regret that we learnt of Honda’s decision. It has no bearing on
BMW’s involvement in Formula One.

Our F1 involvement is an integral part of the company strategy. There is no
better platform than Formula One for demonstrating our brand values. BMW,
moreover, makes targeted use of the Formula One project as a technology
accelerator for series production.

With the BMW Sauber F1 Team, we have from the start focused on high
efficiency and have achieved our successes with a compact and powerful team. The
cost-benefit ratio is commensurately positive. The measures now proposed by FOTA
for significant cost cuts starting as early as season 2009 are a further
important contribution."