Honda pulled out of Formula One on Friday, dealing a major blow to the sport and ending a dream for Japan's number two carmaker.

Amid slumping car sales triggered by the global economic crisis Honda were no longer willing to bankroll the Formula One team and its estimated annual budget of $500 million.

Honda Motor Co chief executive Takeo Fukui told a news conference a return to the sport could take time and added that there were no plans to continue as an engine supplier.

"This difficult decision has been 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.

"We will enter into consultation with associates of Honda Racing F1 and its engine supplier Honda Racing Development regarding the future of the two companies. This will include offering the team for sale."

Fukui, who said earlier this year that he would "spend a trillion yen" if he could to make Honda a Formula One winner, added: "But at this stage we have no plans to return to F1. We have no plans to supply engines to other teams. We do not want to be half in and half out of the sport."

Honda would have little time to find a buyer with the 2009 season starting in Australia on March 29.

Serious Implications

With Formula One's power-brokers desperately seeking cost-cutting measures to ensure its survival, Honda's departure will have serious implications for the glamour sport.

... contd.