Honda has announced it is pulling out of Formula One, blaming the global economic crisis and putting 800 UK jobs at risk.

Takeo Fuki, president of Honda Motor Co, said the company would be willing to sell the team, but a new sponsor was required urgently.

“Honda Motor Co has come to the conclusion that we will withdraw from all Formula One activities, making 2008 the last season for participation,” he said at a press conference.

“This difficult decision has been made in light of the quickly deteriorating operating environment facing the global auto industry… and the sudden contraction of the world economies.”

The decision leaves Briton Jenson Button and his Brazilian team-mate Rubens Barrichello without a drive for coming season, if no buyer can be found.

According to the Reuters news agency, the team’s bosses Ross Brawn and Nick Fry told a meeting of the Formula One Team’s Association that they had a month to find a buyer otherwise the team would be shut down.

At the Honda team’s Northamptonshire base in Brackley around 800 people are directly employed in developing and running the cars.

The team has claimed it will also no longer provide the sport with engines, marking an end to a costly investment in Formula One.

“Honda must protect its core business activities and secure the long term as widespread uncertainties in the economics around the globe continue to mount,” Mr Fuki said.

The team has invested vast amounts of money in the sport, reportedly spending £147 million last year, for little return.

Honda have struggled to make an impact in the sport since entering as a team owner and car builder in 2005. Their sole victory came with Button’s win at the Hungarian grand prix in 2006.