Honda has just pulled out of F1, a decision that will save them £300 million a year. They will also no longer supply the sport with engines.

In a statement to the press, Honda president Takeo Fukui, said: “Honda Motor Co. has come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season for participation. This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry… and the sudden contraction of the world economies.

“Honda must protect its core business activities and secure the long term as widespread uncertainties in the economics around the globe continue to mount.”

According to the Reuters news agency, team bosses Ross Brawn and Nick Fry told a meeting of the Formula One Teams’ Association: “They have a month to find a buyer, otherwise they are closing the team.”

Honda’s departure means that only 18 cars will start next season.

The announcement also highlights the high-cost, high-stakes game that Singapore has chosen to be involved in. Singapore has committed to paying $150 million a year for the next five years to stage the F1, with the Singapore government coughing up $90 million of that every year.

The F1, even in the best of economic times, is extraordinarily expensive. The expense may now look even worse by next September, especially if the tourists, who made up 50% of the 100,000 spectators at the first Singapore Grand Prix, decide to tighten their belts and give it a miss.