Honda extends BAR deal

BAR team principal David Richards said of the deal: "It provides enormous stability at a time when the sport has so many question marks around it. I'd like to thank Honda for its show of commitment in BAR."

Despite rumours of Honda buying a stake in the team, Honda Racing Developments president, Shoichi Tanaka, said: "On that point, nothing has been decided. Owning the team is not as important as the technical challenge and the training of young engineers. Based on the new contract we are thinking of increasing the number of Honda engineers based with BAR at Brackley. Although we are doing well we have not achieved our mission, which is to win races in Formula 1 and the world championship."

Richards, meanwhile, explained that although cigarette advertising is coming to an end in Formula 1, there is no reason why British American Tobacco cannot continue to own the team for many years to come. "Sponsorship of the team and ownership are entirely separate issues," he said.

With Honda recently joining BMW in suggesting that if the F1 technical rules are dumbed-down too much, it could lead to the company reconsidering their involvement, Mr Tanaka added: "It is written in the new agreement that if F1 does not retain its position as the pinnacle of motorsport, then we have a break clause in the contract."