Honda has just announced it has sold the Honda Formula One team to former owner Ross Brawn as Honda continues to cut costs during the tuff economic times. Honda initially announced in December 2008 it would sell the team to cut costs. The team is now called Brawn GP Formula One.

All of the shares were sold, the valuation was not disclosed, but Honda did say, “As a result of this sale, the team ownership has transferred to Mr Brawn, who plans to have the new team compete for this year’s FIA Formula One World Championship,”

As a result of the sale, Brawn has dropped driver Bruno Senna, and kept Jenson Button and Rubens Barrichello. Brawn said, “The vast experience and knowledge that both drivers bring to our team will prove invaluable,”

Senna told autosport.com, “Ross [Brawn] was happy with my testing at the end of last year, but it just wasn’t enough for him to have the proof that I’m ready for Formula One. I respect his opinion.”

Japanese carmaker Honda has literally just announced it will reduce total output worldwide by 50,000 new cars, 29,000 of which from North American plants. By the end of the fiscal year, Honda total output is expected to be down 12% year over year to 1.26 million vehicles worldwide. Honda already announced it would cut production by 119,000 cars on Dec. 12, 2008, on top of the 71,000 decrease announced in Nov 2008. Honda cites the newest output cut can be attributed to the economic downturn resulting in further falling demand in its cars. The company has also announced about 4,300 job cuts in Japan that will take place by the end of April 2009. More recently, Honda has made other cost cutting moves, including pulling out of F1 racing sponsorships as the company tries to focus on its core competency, making and selling consumer oriented vehicles. In related news, Hyundai is now letting consumers who purchase 2009 models return the car within one year if the buyer loses his or her job full-time job. In other auto industry news, GM has also announced it will cut an additional 2,000 jobs.

Japanese carmaker Honda has just announced it will reduce production by an additional 119,000 vehicles due to lowering demand for vehicles as a result of the financial crisis. Honda already announced in November it would reduce production by 71,000 cars. The Honda November 08 report can be found here. The new production cuts will be reduced evenly across 5 plants until March 31 09 across North America. Honda continues to struggle with all other carmakers. Honda sales were down 32% alone in November 08; aggregately sales are down 5% so far in 2008 for Honda. However, Honda Pilot sales are up 4.5% The Honda stock opened about 5% down overnight from yesterday because of the production cut news. No further job cuts or any other cost reduction measures have been announced, but it wouldn’t be surprising to see yet more job cuts as a result of the scaled back production.