Tokyo, Japan (My Sportsbook) - Honda announced on Friday that it will pull out of Formula One competition and sell its team due to global economic conditions.

"Honda Motor Co. has come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season of participation," Honda President and CEO Takeo Fukui said in a statement. "This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the sub-prime problem in the United States, the deepening credit crisis and the sudden contraction of the world economies."

Even though Honda's original F1 involvement began in the 1960's, the company acquired British American Racing and transformed into a works team in 2006 with Jenson Button winning the Hungarian Grand Prix that year. Honda supplied engines for BAR from 2000-05.

Button and Rubens Barrichello drove for Honda during the 2008 season, but their status for next year has yet to be confirmed.

Nick Fry, the team's CEO, is closely involved in the evaluation of potential buyers and is optimistic new ownership will be found before next season begins March 29th in Melbourne, Australia.