No more Grand Prix for Honda team as 760 people are set to lose their job. For company boss Fukui the “difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry.”

Tokyo (AsiaNews/Agencies) – Honda is pulling out of Formula One. In an official statement, the world’s second largest car maker said that it no longer intends to field a team, which last year cost US$ 500 million.

“This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry . . . and the sudden contraction of the world’s economies,” Honda Motor president Takeo Fukui said.

“Honda must protect its core business activities and secure the long term as widespread uncertainties in the economics around the globe continue to mount,” he added.

At a press conference Mr Fukui said that any return to car racing could take time; at present though, Honda had no plans to supply the sport with engines.

Honda had money for another year but rising costs and the world recession have put plans in jeopardy because of the lack of sponsors.

This year Honda shares experienced a 60 per cent drop, on top of a 32 per cent decline in sales.

Thanks to its withdrawal from the Formula One the Japanese car maker will save 50 billion yen (US$ 420 million).

Honda has already cut production by 140,000 units and is expected to lay off many workers. About 760 Honda team employees in Tokyo and Great Britain will be paid until December 2008 but after that they will be looking for a new job.

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