Max Mosley issues warning to Formula One as Honda quit

He said Honda's exit was sad but not surprising in the current financial climate and warned that other teams were facing financial meltdown.

Mosely, president of the FIA, motorsport's governing body, said Honda's decision, which leaves Jenson Button facing the possibility of being without a drive next season, should act as a significant warning.

He said it was imperative the sport slashed its soaring costs, with teams spending around £300million a year, or it could fall apart.

Teams have plans to cut back next season, which Mosely described as just "fiddling about". He wants to introduce a standardised, low-cost engine in 2010.

Mosley believes costs could be reduced from around £300m to £30m if they stop pointless, expensive developments.

He said: "If we don't cut costs we would lose one team after another and we would end up with no teams at all. If the teams don't notice now what's happened, you have to abandon all hope.

"If they don't wake up to it now, they'll probably get a nasty shock in the future.

"Our job is to take action. That's why we've sent out a letter to the teams this morning setting out our plans to get the costs right down."

While Mosley made his call for cuts, Honda Motors chief executive Takeo Fukui, who spent around £200m a year on F1, said they would be willing to sell the team after nine years in the sport.

The shock decision leaves Button without a drive, although he may find a berth with Toro Rosso. His team-mate Rubens Barrichello is now likely to retire.

In a statement, Fukui said the decision was made to preserve Honda's core business activities in a worsening global crisis.

He said: "We have come to the conclusion that we will withdraw from all Formula One activities.

"The decision is in light of the deteriorating operating environment facing the global auto industry, brought on by the problem in the United States, the deepening credit crisis and the contraction of world economies."

From high-speed legends to a final breakdown

February, 1964, marked the beginning of Honda's proud history in Formula One which saw the team power such legends as John Surtees, Nelson Piquet, Keke Rosberg, Ayrton Senna, and Nigel Mansell to legendary status in the world of grands prix.

The first Honda F1 car made its debut on the daunting Nurburgring in August, 1964, with Ronnie Bucknum at the wheel. The American held a top-10 position before he was forced to retire with suspension problems.

He underlined the promise of the Honda a month later by battling to fifth at Monza before encountering more technical problems.

The following season the team signed Richie Ginther to partner Bucknum and the Californian gave the team their maiden victory on only their 11th outing when he won the Mexican Grand Prix.

In 1967, Honda signed John Surtees, the only man to win the world title on both two and four wheels.

After a thrilling season duelling with Jim Clark and Jack Brabham, Surtees finished fourth in the drivers' championship.

Surtees also gave the team their first pole position at Monza a year later. The team withdrew from Formula One in 1969 and didn't return until 1983, but this time a decision was taken to be an engine supplier only and the team went on, via a brief spell as Spirit-Honda, to establish a successful partnership with Williams

Nigel Mansell joined the team and the Honda powered Williams became the team to beat. Honda engines powered Williams and Lotus in 1987 and these cars won 11 of the 16 races that year with Nelson Piquet winning the title.

Honda switched to McLaren at the end of 1987 and their engines helped Alain Prost and Ayrton Senna become champions.

In 1992, when a Honda-powered car failed to win the title, they quit the sport again before returning towards the end of 1999. In 2000, Honda supplied engines for BAR, and Jordan.

BAR became Honda Racing in 2006 but they failed to reproduce their glorious past and today's announcement sees them exit once more, probaby never to return.