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Honda Bankrupt?

Posted by kirat92 • 12/06/08 • Subscribe to this Discussion [RSS] • Report This Topic
Topics: bankrupt, economic crisis, f1, financial meltdown, honda, motorsport, racing

Honda Racing dramatically announced yesterday that they were pulling out of F1.
Considered a robust and well funded team, this sudden exit caught the public by surprise.

Is something hopelessly wrong with the balance sheets at Honda?

Is Honda going bankrupt?

Are any more F1 teams going to pull out?

What do you think?

User Comments

12/06/08

Crazysah

I don't see Honda filing for bankruptcy as 4 companies or consortium have already shown interest to buy out the team. Jenson Button also came to the teams headquarters and made a speech to around 700 workers there.

8 long years of happy times is finally over?

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12/06/08

lvs

i think they are just reassigning their resources in light of the slowdown

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12/06/08

kirat92

maybe

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12/06/08

PotatoChef

I hope they don't cancell the Honda Accord. Best car on the road.

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12/06/08

csiunatc

I don't know how F1 is doing in general. I lost interest in it completely when they started with the threaded tires and all the other rules.

Maybe F1 just isn't a good investment anymore.

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1. 12/08/08
  
  EagleEyedJerry
  
  I think you're right, it's not a good investment. Honda is just being wise.
12/06/08

kdawg68

Considering I work in this industry- you're going to see a dramatic reduction in all spending across the board not deemed essential towards keeping their business in operation. Honda is a smaller company - no where near as large as the "big 3" or even it's top asian competitors. They are likely reacting to evaporating lines of credit, reduced consumer confidence, and increased losses due to repossession, charge-off, slowed sales, etc.

Even the companies in relatively "strong" position (relative to their competitors) are tightening the belt with reductions in spending across the board. It's the nature of the beast.

Another way to look at it is this - would you rather they pull out of F1 racing, or layoff workers? I'd go with the former.

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12/07/08

Crazysah

Yeah. Thats true kdawg68. I would also rather pull out of F1 Racing. You can always re-enter it.

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12/09/08

kirat92

Williams and Ferrari have also said that they are going to engage in some serious cost cutting.

In fact, the Williams guy said he expected at least one more team to pull out.

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