FIA president Max Mosley has vowed to push through vital cost-cutting measures to safeguard the future of Formula One as Honda prepare to leave the sport. Mosley's move came in the wake of the bombshell confirmation today from Honda that they are to pull out of the sport, with the company up for sale.
The move merely underlines the fears Mosley expressed earlier this year that F1, in light of the current economic crisis, was spending money beyond its means.
A FIA statement read: "The announcement of Honda's intended withdrawal from Formula One has confirmed the FIA's long-standing concern that the cost of competing in the world championship is unsustainable.
"In the FIA's view, the global economic downturn has only exacerbated an already critical situation.
"As the guardians of the sport, the FIA is committed to working with the commercial rights holder (Bernie Ecclestone) and the remaining members of FOTA (the Formula One Teams' Association) to ensure Formula One becomes financially sustainable."
In a statement, Honda president and CEO Takeo Fukui announced that his company's decision to withdraw from F1 was made in light of the global credit crisis to preserve Honda's core business activities.
Fukui said: "We, Honda Motor Co. Ltd, have come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season of participation.
"This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the sub-prime problem in the United States, the deepening credit crisis and the sudden contraction of the world economies.
"Honda must protect its core business activities and secure the long term as widespread uncertainties in the economies around the globe continue to mount. A recovery is expected to take some time."
The remaining nine teams, and there are now serious fears at least one more could fall by the wayside before the start of the season in Australia on March 29th, have until next Thursday to sign up to the prospect of using a standardized engine.
Mosley has confirmed the FIA are now in exclusive negotiations with engine suppliers Cosworth, along with Xtrac and Ricardo (XR), for the use of transmissions.