---
title: "Carey: Economics the ‘core issue’ behind Honda’s F1 departure"
canonical: "https://readmotorsport.com/2020/11/06/carey-economics-the-core-issue-behind-hondas-f1-departure/"
type: "post"
language: "en-GB"
author: "Hamilton Lyndon-Griffiths"
section: "F1 News"
published: "2020-11-06T11:33:50Z"
modified: "2020-11-06T11:33:53Z"
---

# Carey: Economics the ‘core issue’ behind Honda’s F1 departure

Outgoing Formula 1 CEO Chase Carey says economic challenges was the “core issue” behind Honda’s decision to quit the sport at the end of 2021.

Honda returned to F1 in 2015 one year into the V6 hybrid era, striking a deal to supply engines to McLaren, which would only last three years following an acrimonious split.

While it has made significant progress on its power unit since then, powering Red Bull and AlphaTauri to victories in 2020, the Japanese manufacturer has chosen to pull the plug on its F1 operation

It has sighted a desire to pursue a push towards sustainability and carbon neutrality in its road car division.

Honda’s withdrawal means there is now just three engine manufacturers on the grid from 2022, which Carey believes was driven by economics.

“I guess two things on the Honda decision,” Carey told Wall Street analysts.

“I think one is that it was, from my perspective, largely driven by economic challenges at the overall Honda entity.

“The auto industry in general is having some challenges, and I think Honda clearly is living and struggling with those challenges. So I think that was the core issue.

“There’s no question that there are economics around the engine that we’re going to address.

“But I think Honda felt those pressures existed today, and they had to make some decisions.”

Despite Honda’s imminent exit, Carey remains optimistic F1 can attract new manufacturers when it decides the direction of the 2026 engine regulations.

“I think on the flip side, we actually are getting increasing support,” he said.

“And not just from the players that are in the sport, the OEMs that are in the sport, but OEMs that aren’t.

“They’re actually incredibly enthusiastic about our sustainability future, where we’re going with the next generation engine.

“I don’t know if you saw the quote a couple months ago from the CEO of Volkswagen, they couldn’t have been more positive about where we’re going, and the importance of us as a platform.

“So I think as we continue to flush out and put more information out there about our next generation engine and sustainability goals we’re actually getting increasing support and interest from both existing partners and potential new partners about the importance of that to their future.”