Trickle-Down Theory in Formula One

Wheels - The Nuts and Bolts of Whatever Moves You
December 5, 2008, 7:23 pm
Trickle-Down Theory in Formula One
By Christian Edstrom
Jenson Button, a driver for the Honda Formula One team, at a practice
session for the Belgian Grand Prix in September. (Francois Lenoir/Reuters)

Citing the global economic downturn, Honda announced Friday that it was
pulling out of Formula One racing and selling or disbanding its team,
based in Brackley, England. The move will save Honda an estimated $300
million a year, a welcome respite for a company whose November sales in
the United States were down 32 percent from the same month last year.

On the other hand, the company will lose whatever marketing benefits it
reaped from participating in what is considered the most advanced auto
racing series.

Honda’s move, combined the withdrawal of the Super Aguri-Honda team
earlier this season, means that 2009 will be the first time this decade
that Honda-powered cars will not be seen on the grid. The team, despite
spending hundreds of millions of dollars, ended the season
second-to-last in the team standings, and its drivers, Jenson Button and
Rubens Barrichello, were 18th and 14th in the drivers standings.

For enthusiasts, there is another concern — one that may have a greater
effect in the long run.

Fans of Formula One claim that trickle-down technology is one reason for
its continued success, and it’s true that new automotive technology
springs forth from Formula One fairly regularly: radial tires, traction
control and drive-by-wire throttles all appeared on formula cars years
before their adoption as mass-market features.

While the technology from Formula One may well have helped create Civics
that can be wrung out at redline for 200,000 miles, it seems a stretch
to think that many prospective buyers of Elements, Odysseys and
Ridgelines are even aware of the racing efforts. And if they are, does
that make them more likely to buy a Honda? That’s the $300 million
question, and for now, Honda seems to be betting the answer is no.

So, taking a bit of “the wisdom of the crowd” from our colleagues on the
Freakonomics blog, let us know: If you’re a Honda driver, did the
comapny’s Formula One participation play a role in your purchase?
Ferrari drivers, and especially Toyota drivers, are welcome to chime in too.

* Copyright 2008 The New York Times Company

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