Honda Exits F1 due to Financial Crisis

Honda Motor has withdrawn from Formula One racing, as a part of its cost cutting activities  after the Japanese carmaker slashed its earnings forecast, fired assembly workers and reduced production.This move will help Honda in cutting at least $ 216 million in costs .The racing Team is up for sale and also it  would  no longer supply engines to other teams.

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."

Almost all leading Auto Cos are facing trouble with the US Big 3 facing bankruptcy.Read full story here