By now is obvious what the global economy has done to domestic automakers, and their dealers. But perhaps a less obvious sign of problems is how it has affected motors sports. Honda just announced that it will be pulling out of Formula One racing, citing the high costs involved in maintaining such a racing team.
For Honda, focusing on selling cars is simply more important than racing cars for the time being. The F1 racing competition is expensive for any automaker to participate in, which Washington DC Honda dealers say is precisely why Honda has decided to put its team up for sale. With one of the largest automakers pulling out of F1 racing, it may force F1 to change the way it operates, and somehow make racing more affordable.
Although F1 racing may not be as popular in the US as other forms of racing, one Pittsburgh used Hondas dealer suggests it nonetheless illustrates the struggles of automakers around the world. Honda, like other automakers, has recently announced job cuts due to decreased demand to cars. Production has also been cut recently. With plenty of signs that suggest things may get worse before they get better, Honda Birmingham believes that Honda’s departure from F1 is probably a wise move.
F1 is an increasingly expensive sport, which FIA president Max Mosley said was “unsustainable” at its current $1.6 billion a year spending. But cost-cutting measures are making their way into F1’s operations, which will hopefully make it more affordable for teams to participate in the sport in the future. Honda’s departure from F1 is simply one indication of just how necessary cost-cutting is to the sport’s survival. Honda Philadelphia warns that with Honda now out of the race, rumors suggest that their main rival, Toyota, may also depart from F1.
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