Honda: Shutting down team an option

The Japanese car manufacturer announced in December that it was pulling out of F1 with immediate effect, and moves were made to find new owners that could take the team forward.

Despite intense speculation about the identity of several potential purchasers, with the latest being Richard Branson's Virgin Group, there has not yet been any official word about a deal being close to getting the sign-off.

And while it is understood that Honda chiefs in Japan are this week studying in detail the proposals that are on the table, a spokesman has conceded that shutting the team down completely remains a viable option.

Honda spokesman Hiroyuki Murase told The Associated Press: "It's true that we are pursuing several potential buyers. But the team may still have to be disbanded if the negotiations fail."

Despite the Virgin rumours this week, it is believed the plan still favoured by team chiefs Nick Fry and Ross Brawn is for a management buyout - using extra money from Honda, television rights income from Bernie Ecclestone and extra sponsorship that could come from Bruno Senna's backers.

Ecclestone said he would welcome the Virgin Group in F1.

"We would welcome them with open arms," Ecclestone told The Mirror. "He's exactly the type of person we would want in the sport.

"Sir Richard Branson is a wonderful guy. I met him at Monza last year and we got on very well."

There are suggestions that a decision about the team's future will need to be taken in the next few days, however, with engine supplier Mercedes-Benz requiring a guarantee that the team have the funds to secure a deal from them for the season.

Honda Racing have maintained silence about the ongoing situation, with a team spokesperson merely saying that they are 'optimistic' about the outfit being at the season-opening Australian Grand Prix.