Honda Motor Co. said Dec. 5 that it will withdraw from Formula One by the end of this year, making 2008 its last season in F1 motor racing, because its business conditions rapidly deteriorated amid the worldwide economic downturn.

Honda President Takeo Fukui said at a packed news conference in Tokyo that Japan's second-largest automaker can no longer bear the large operating costs for F1 as it needs to spare more resources to develop environmentally friendly cars and other new technologies.

Honda will consult with the associates of Honda Racing F1 Team and its engine supplier, Honda Racing Development, regarding their future, including the sale of the team, he said.