Heikki Kovalainen

Reemz27 · Posted: Fri Dec 12, 2008 2:51 am Post subject: F1 exit could cost Honda $150m

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Compensation payments to contracted parties

Honda has pulled out of Formula One to escape its huge annual budgets it claims, but even walking away from the sport is expected to cost the beleaguered manufacturer an immense sum.

Britain's The Times newspaper, citing 'industry experts', estimates the bill could near $150 million unless a buyer can quickly be found.

Compensation for driver Jenson Button's recently-signed new multiple year contract may be more than $35m, while Honda would have to fund redundancy packages for Brackley's 700 staff.

Should a buyer not be found, Honda will also have to fund the disposal of the high-tech F1 factory, and then deal with the consequences of the termination of dozens of supplier contracts.

"Five years from now, I think history will show we made the right decision," Honda Motor Company President Takeo Fukui said.

Source: GMM
© CAPSIS International
http://en.f1-live.com/f1/en/headlines/news/detail/081211100354.shtml

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Reemz27

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The French manufacturer PSA, selling cars under the names Peugeot and Citroen, has reportedly expressed interest in buying Honda's beleaguered Formula One team.

Anonymous sources apparently told the Belgian motor racing magazine Autosportnieuws that the carmaker, last involved in F1 as an engine supplier with the now-defunct Prost team, has made enquiries to buy the Brackley based team as an active F1 competitor.

Citroen's world rally team is the reigning drivers' and constructors' champion, and Peugeot is involved in Le Mans racing.

It is suggested that, given F1's willingness to vastly reduce operating costs, PSA is interested in stepping because it has not been hit as hard by the world economic crisis than some of its peers abroad.

The French government is also pledging financial support to the car sector, in return for Renault and Peugeot-Citroen promising to limit job cuts and plant closures.

It is suggested that Sebastien Bourdais, the French F1 driver whose Toro Rosso seat is in doubt for 2009, would be part of a PSA buyout, with Jenson Button as his team-mate.

Source: GMM
© CAPSIS International

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Reemz27

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David Richards has shown interest in brokering a rescue deal for Honda Racing, after flying out to the Middle East on Saturday to talk with potential investors.

Honda has been in search of a buyer for its Brackley-based squad since it announced its shock withdrawal from the sport earlier this month.

Richards has made no secret of his ambitions to return to Formula 1, after managing both Renault and BAR in the last decade.

His company Prodrive attempted to join the F1 grid as a McLaren customer outfit last season but the deal was vetoed by other teams in a backlash against customer cars.

Richards says that if the circumstances are right, he knows a number of potential backers who want to be involved in Formula 1.

"There are a group of people in the Middle East who want to support a Formula 1 entry for me and have been very specific about it for a year now," Richards told the Mail on Sunday.

"But we have to agree when the timing is right."

Richards is realistic about the financial burden of taking on a grand prix team and warned that any deal would not be taken lightly.

“When you sit down in the cold light of day and realise the liability you would be taking on, and the huge restructuring of staff and resources that will be needed, investors will have to think long and hard before taking a punt,” he said.

“You will have to bridge a big gap in finance, probably for three years, before balancing the accounts.”

Last week Japanese car manufacturer Subaru pulled the plug on its World Rally Championship team run by Prodive.

Richards said the withdrawal was a sign of the times but insisted it has not altered his F1 ambitions.

“It affects about 20% of our business, but we are financially sound and have a talented, nimble organisation with a strong automotive arm looking at future technologies,” he said.

“Sentiment and perception about the relevance of motorsport has changed in six weeks with the dramatic economic downturn.

“I have not ruled out getting back into Formula 1: It’s something I am very interested to do.

“But the big question remains: Is it too big a challenge at this moment in time?

“That’s what I need to determine.”
http://www.itv-f1.com/News_Article.aspx?id=44820

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Reemz27

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Telmex boss Carlos Slim visits Brackley HQ
As the Honda Motor Company pushes for a buyer, a list of potential saviours of the Brackley-based Formula One team is becoming ever clearer.

It is already known that Prodrive's David Richards, who ran the Benetton and BAR teams in the past, has travelled to the Middle East for talks with investors.

But another serious candidate is Carlos Slim, a Mexican billionaire who is the second richest man in the world.

68-year-old Slim, who controls the telecommunications company Telmex, gave the game away when he visited the embattled team's UK headquarters last week.

His helicopter, displaying his official crest, was too big to be landed on the helipad, so the team had to clear the car park, the British newspaper The Sun reported.

A takeover by Slim would boost the chances of GP2 driver Bruno Senna, who is backed by the Telmex subsidiary Embratel.

It is also believed that Force India's Vijay Mallya has expressed an interest in the team, as has a Swiss hedge fund and Greek shipping tycoon Achilleas Kallakis.

Team Chief Executive Nick Fry said: "We have had a high level of interest in the team since Honda announced their withdrawal from Formula One."

"Work on the build of our 2009 car continues to ensure our objective of being on the grid at Melbourne in March will be achieved."

Source: GMM
© CAPSIS International
http://en.f1-live.com/f1/en/headlines/news/detail/081222090755.shtml

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Reemz27

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London (PTI): Flamboyant Indian business tycoon Vijay Mallya is pitched against Mexican billionaire and one of the world's richest persons, Carlos Slim Helu, among others for buying the Formula One team of Japanese auto giant Honda, a report said on Monday.

Honda put its Formula One team on the block earlier this month as it decided to move out of the racing activities due to the economic slowdown saying that it was looking to sell the team by the end of the year.

In a report, automotive industry website Motor Authority said that Carlos Slim, Force India's Mallya and UK-based motorsport and auto engineering group Prodrive's David Richards have emerged as the potential buyers. The other interested parties include a Swiss hedge fund and Greek shipping tycoon Achilleas Kallakis, it added.

Force India F1 motor racing team was formed last year after a consortium led by Mallya bought the Spyker F1 team for 88 million pounds. Noting that Prodrive's Richards has "has travelled to the Middle East for talks with investors", the report said that "another serious candidate is Carlos Slim, a Mexican billionaire, who is the second richest man in the world."

"68-year-old Slim, who controls the telecommunications company Telmex, gave the game away when he visited the embattled team's UK headquarters last week," it said, adding, "His helicopter, displaying his official crest, was too big to be landed on the helipad, so the team had to clear the carpark."
http://www.hindu.com/thehindu/holnus/007200812221866.htm

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