Wow, thats news.  I check the F1 site every couple of days.  Honda has been one of the biggest letdowns since their return as owner-manufacturer with poor results.  Toyota are at least finding some results with good speed with their cars.

Costs of running a team are very high.  Finding out how to cut costs without affecting the competitiveness and advances in techs will be interesting.  Next year engines now have to run for 3-races?

From what i remember reading, in the next couple of years, don't all teams have to be owner-manufacturer as well?  Engine resources won't be permitted?  I think Pro-drive is coming in.....The article (from the F1 website) said there were still quite a few manufacturers who wanted in but they had to restrict the number of teams to 12 or else there would be too many cars on the track.  But that was when the economy was high......

In any event, I look forward to next year with Renault back on the ball; Alonso, Kimmi, Lewis and Kubica in decent cars and with the return of slicks, it should be interesting.

Cutting costs is difficult to achieve I believe because of the inherent nature of competition.

Perhaps a budget cap is the best way? Spend X amount on what you want to but no more. The only concern would be policing it - F1 is awash with people who are pretty clever at hiding money IMO...

You could standardise some components - like brakes, fuel tanks for example. But if manufacturers are to stay they will want engines/gearboxes to be of their own making. You could really limit testing too - even wind tunnel time.

Honda was indeed a great disappointment - Toyota have fared better but given the car industry at the moment this doesn't mean that the beancounters won't win.

The FIA originally said they wanted a standard engine but after the teams/manufacturers told them to F-off they then clarified this to say they wanted a 'standard spec' engine ie. all engines have to be built to a certain set of specified regulations. The manufacturers could still build it themselves but only with very strict regulations on components/dimensions etc etc.

The manufacturers have still told the FIA to f-off...

There are some limits of testing but these are quite soft - limits on the number of cars at a test, how many on the track at any one time however I think they are still allowed to do well over 15000kms a year. As Flavio has said, its a bit rediculous how much money they spend to run around tracks in front of empty grandstands and no television cameras...

Don't believe there is any restrictions on wind tunnel testing - many teams have 2 tunnels going pretty much 24 hrs a day.

Teams also have CFD computer simulations going constantly as well. This, as well as advances in manufactureing processes (rapid prototyping) is the reason why the pace of aerodynamic development has really accellerated and we see all those curvy wings and things.

The new regs this year could be good for Toyota but then again they've been complaining about the KERS regs so it could be a case of them underachieving again.

FYI from SMH site:

"Honda will pull out of Formula One unless a new buyer can be found within three months, The Associated Press has learned.

The Japanese car manufacturer has the operating budget to keep the team running into early 2009, but escalating operational costs amid the worldwide financial crisis have the Brackley-based outfit in danger of shutting down if a new sponsor is not found quickly.

A formal announcement will be made from Japan on Friday, but a person familiar with the decision told The AP that team bosses Ross Brawn and Nick Fry informed the near 700-member team late on Thursday.

"Their intention is to pull out entirely - as an engine supplier and sponsor," the Honda team member said on condition of anonymity because the person was not authorised to discuss it. "It's a shock. I think this came as a total surprise to everyone. No one in the UK was aware of this decision before Thursday night."

Brawn and Fry had returned from a FOTA meeting in Geneva, Switzerland, where they informed the other 10 F1 teams of the manufacturer's decision.

A pullout by one of the world's biggest car manufacturers will send shockwaves through F1, which could start the season with only 18 cars on the grid. Japanese team Super Aguri, which was backed by Honda, pulled out of F1 this year.

The season opens at the Australian Grand Prix on March 29.

The move leaves Jenson Button without a car seat for next season, while promising rookie Bruno Senna was trying out for the No. 2 seat at winter testing last month.

Senna, 25, is the nephew of the late triple champion Ayrton Senna.

Honda, with an operational budget of around 200 million pounds ($A456.2 million), finished ninth in the constructors' standings last season with Button finishing 18th out of 20 drivers with three points. Rubens Barichello, who was dropped by the team going into 2009, was 14th with 11 points."

Formula 1 needs a total overhaul

it is to expensive and is not competitive across the grid...

I don't think they will leave MotoGP but in this current climate never say never...