Honda withdraws from Formula One racing

HONG KONG : Honda disbanded its renowned Formula One team on Friday, a startling pullout that has its origins in the dismal state of the auto industry and which figures to have huge repercussions on the high-profile racing circuit.

A glum Takeo Fukui, the chief executive officer of Honda, made the announcement himself at a press conference in Tokyo.Fukui called the company's withdrawal from F1 ""a difficult decision" caused by the worldwide economic gloom and ""the quickly deteriorating operating environment facing the global auto industry."

Honda Motor Co. Chief Executive Takeo Fukui, right, and Managing Operating Officer Hiroshi Oshima prepare to leave a press conference at the Japanese automaker's head office in Tokyo, Japan, Friday, Dec. 5, 2008. Honda has pulled out of Formula One, citing a slowdown in the global economy and a need to focus on its core business activities. "We have come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season of participation," Fukui said at the news conference.