From ABC News


Photo Courtesy BBC

Honda Motor president Takeo Fukui made the announcement at an emotional press conference, repeatedly apologising to fans, staff, drivers and F1 authorities.
"Honda Motor Co. has come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season for participation," Mr Fukui said.
"This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry, brought on by the subprime problem in the United States, the deepening credit crisis and the sudden contraction of the world economies," he added.

BBC Report

Honda spent nearly 500 million on Formula 1 this year.