Formula 1’s first victim of the credit crunch is Honda, which has put its F1 team up for sale.

Honda has announced it will not continue to support the British-based team beyond the end of 2008. If no buyer is found it will close the team’s factory in Brackley, Northamptonshire, which employs 600 staff.

It places the F1 career of Jenson Button in serious doubt. Button joined the team in 2003 and scored his maiden win with them at the Hungarian Grand Prix in 2006.

Honda CEO Takeo Fukui apologised to Button. He said: "It's a real shame and I feel deeply sorry for Jenson Button. We had no choice in the current financial conditions."

First of many?

Honda confirmed the decision shortly after announcing its sales in the crucial American market had fallen by 32%. It has already confirmed it will halt road car production at its plant in Swindon for two months next year.

There are now fears Honda will be the first of many car manufacturers to announce its withdrawal from F1.

The other car makers currently involved in F1 are Ferrari, BMW, Renault, Toyota and Mercedes (which supplied engines to McLaren and Force India).

All of these companies are suffering in the economic downturn as Honda has. But the news of Honda’s decision to quit F1 could prompt many of them to follow suit.

Particular doubt surrounds Toyota’s F1 future. It has achieved little success since entering the sport in 2002. It too has seen a substantial fall in sales in America, and it is thought less likely to continue in F1 without its number one domestic rival to compete against.

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