The liquidity crunch has taken a toll on major sports events including the Formula 1. Though Formula 1 is considered to be the richest sports, yet it’s experiencing the pressure of economic meltdown.
One of the biggest F1 spenders, Honda, has already pulled out from the team, putting his team at auction. Honda was known to invest about millions of dollars in this sports event to keep its F1 team buzzing. But, now an immediate withdrawal by the company has triggered fear that other associated car manufacturers could withdraw before the start of the F1 season. Withdrawal by Honda has further brought down the financial position of this sport.
Honda F1 team is now sold out to F1 supremo Bernie Ecclestone with an announcement that the company won’t even supply engines. Honda’s withdrawal from the sports has put the future of winning drivers Jenson Button and Reubens Barrichello in dilemm.
As a part of the cost cutting measures the old engines have been detuned to 18,000 rpm for three races next season instead of two in the current scene. Even the number of engines provided to the teams has been reduced in response to the economic meltdown. All the teams would now be provided a maximum of 20 engines, 8 for each of the two drivers and the remaining four for the testing procedure. This is amazingly almost half of what the teams used in the current season.
Possibilities are there that after Honda, other car players like BMW, Mercedes, Ferrari, Renault, and Toyota will also take a backward move to save a heavy investment required to maintain a competitive team.
Not only on Formula One, the credit crunch in the market has taken a toll over the entire economy. Everything is moving down with low hopes of rising it back in near future. Auto industry being a major part of the Indian economy has been most affected.
Honda has already pulled away from the team. Ferrari has signed with Tata for sponsorship. Cost cutting measures in the riches sports. What else is left to see as an aftrenmath of economic recession?
Thats right. Tight credit crunch in the market has so badly affected the forumula one race and all the race winners are now doubting their future. they al must have been left by confusions as to what next.
Global recession has hit all the sectors in a bad way, true. it has also not left theF1. The giant like Honda has pulled down itself, which has created a havoc in the arena. I too fear if the other big names will also slowly disappear from here.Ferrari has a good time, Tata has come for rescue. Now need to see who remains and who leaves!!!