Honda F1 in trouble, and withdraw from F1

[ben_watkins]

Due to Honda's exit, Mad Max has now offered a standard Cosworth engine..

http://www.f1technical.net/news/11195

This is the end of F1 as we know it imho

[monkeyboy1976]

I am gutted that the rumours yesterday turned out to be true.
But, to be honest, it is not suprising. The car manufacturers have a tough time generally in justifying spending millions every year to support an F1 team, which is on the face of it, from a general public point of view (not ours), an elaborate marketing exercise.
With plummeting sales and money running out, this job is getting close to impossible.
I just hope the set up of FOTA has brought the teams and car companies together to give them strength and mutual support through what is going on.
I also hope that Honda's decision does not become a green light for others to justify doing the same.

Guess we just have to sit and wait for further developments.

[axle]

3 serious enquiries from prospective buyers in 12hrs...all might not be lost.

[xpensive]

I would probably say something like that as well, if I was trying to give away something that will cost 300 MEUR a year just to own.

[Sawtooth-spike]

Pro Drive maybe?

[monkeyboy1976]

Prodrive would not have the money to buy Honda F1 themselves. An external investor would be needed.
Prodrive, or David Richards to be more precise, has a history here.
Last year, he convinced a pair of Middle Eastern investment banks to buy Aston Martin from Ford. All was going well until this month when Aston Martin announced a massive drop in sales and 600 (1/3 workforce) job loses.
I am not sure how much of their investment the two banks are getting back but I'm sure it's not as much as they would have hoped.
Could David Richards convince another group of investors to buy Honda F1?

[xpensive]

I don't think the actual sale is the issue here, when the alternative for Honda is to close down the shop anyway, I think they will be happy just to give away the keyes.

Problem is no doubt to find somebody to pay for the running of the team.

[Metar]

If he finds a high-paying title sponsor... He has a shot.

[xpensive]

That's it, but sponsors like that are not exactly around the corner these days.

Tobacco is of course long gone, petroleum industry will be in bad shape, while I think you can forget about the banks for a looong time.

[Metar]

Exactly. I think the high-proof alcoholic drinks producers can start sponsoring, though - with the economy going down, their business should be booming soon.

[xpensive]

There you go, along with the cellphone companies for the sobby-early-morning-calls from the crappy motel...

[Metar]

Martini Racing? [-o<

Finlandia F1, featuring Kimi Raikkonen and Heikki Kovalainen. Kimi will be the team's driver, and the sponsor's biggest customer.


All those that profit from despair should start working on F1 sponsorship. Maybe the Somali pirates could throw in some of their ransom-money (and an oil-tanker to cover transportation?)

[ben_watkins]

Exactly. I think the high-proof alcoholic drinks producers can start sponsoring, though - with the economy going down, their business should be booming soon.

Diageo already sponsor McLaren, using the Johnny Walker brand.. perhaps they should sponsor the up coming "medal ceremony" where the drivers drink spirts to forget they were ever an F1 driver....

[xpensive]

Restore the Honda team's original name, BAR, but this time as Budweiser American Racing, with Al Unser Jr. driving and AJ Foyt in Ross Brawn's position.

This would surely bring back the American race and crowd, as well as forever change Europe's concept of "the ugly American", when AJ knocks down the race winner in the pit-lane.

[WhiteBlue]

This has come as a surprise in one way but not in another.

Surprising was the suddenness but not the logic behind the choice of the first manufacturer to pull out.

We have allways known that this could and would happen at a given scenario. I my view Renault and Merc are the next most likely candidates to pull the plug if things don't change drastically.

We have a situation of negative cash flow for most automotives and they will obviously look at stop loss measures to preserve their core business.

For Jenson Button, Ross Brawn and many of their co-workers it will be a difficult time and one for which they have no responsibility. The man who is responsible for the mess clearly is Fry. I hope that he will receive the just reward for his failure.