Honda Racing Seeks State Funding

Fri, 30 Jan 2009

Honda Racing could apply for a bail-out from the UK government in order to secure its Formula One future.

Honda Racing CEO Nick Fry has been actively seeking a new owner since the team's Japanese parent company announced last month that it was withdrawing funding due to the global financial crisis.

The F1 team confirmed they have been in talks with Lord Mandelson's Department for Business, Enterprise and Regulatory Reform (BERR) over the possibility of applying for funds from the £2.3 billion Government loans package for the UK motor industry, announced earlier this week.

A spokesman said: "We have had meetings with BERR over the future of the team on several occasions over the past month."

A BERR spokeswoman said there was no reason why Honda couldn't apply for the financial support package.

"We expect any company in the automotive industry, or in its supply chain with a turnover of £25m or more, to qualify (for the loans) if it has a viable project to deliver the objectives of the support package. All application will be considered on a case-by-case basis."

She added that the government's key criteria for qualifying for a loan are "a turnover in excess of £25m, being at the cutting edge of innovation, reducing carbon emissions and creating jobs".

Honda Racing, reportedly has 700 employees and an annual budget of around £200 million, said it remains optimistic of finding a buyer in time for the start of the 2009 formula one season, which kicks off in Melbourne on March 29.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page



 

Business Newsletter

Please enter your email below and subscribe to our monthly newsletter

Reduce mortgage paymentsSave on Your Mortgage

Would you like to save money on your mortgage? Fill out our quick mortgage enquiry form.

Health InsuranceProtect Your Health

Find Critical illness, Life and Private Medical Insurance PMI policies.