formula 1 millionaires seek state bailout

by David Broder

The Honda Formula 1 team may be set to receive a bailout from Lord Mandelson’s £2.3 billion fund for the car industry in a further example of state intervention to shore up the super-rich.

The team is currently owned by Honda, the world’s sixth-largest car manufacturer. Although the marque’s sales have suffered much less from the recession than its rival Toyota, in November it announced plans to sell off its Formula 1 team, which finished 9th out of 10  in the 2008 constructors’ championship on a budget of £180 million.  A 63% fall in Honda’s quarterly profits has also prompted the shutting-down of its Swindon road car factory.

Honda claim that closing the team entirely would cost it more than keeping it going, but wants to wash its hands of the operation. Therefore any state bailout would essentially amount to using taxpayers’ money to save an unprofitable part of Honda’s business which it wants to junk. Continue reading “formula 1 millionaires seek state bailout”