Honda's F1 pull-out shows earnings power sapped by COVID

Situation worse than 2008 financial crisis as electric vehicle pressure mounts

20201004 Honda's F1

Honda announced it will pull out of F1 at the end of the 2021 season. © AP

RYOSUKE HANADA, TOMOYOSHI OSHIKIRI and TSUYOSHI TAMEHIRO, Nikkei staff writers

TOKYO -- Honda Motor has said it will pull out of Formula One at the end of the 2021 season, choosing instead to focus management resources on next-generation environmental vehicles.

The reason for Honda's fourth exit from the highest class of international single-seat auto racing is identical to that for its 2008 withdrawal in the wake of the global financial crisis triggered by the bankruptcy of Lehman Brothers in September of that year.

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