Carmakers worldwide are feeling the pain of global credit crisis and economic downturn as people around the world are cuting their extra expenses due to massive lay offs and other financial issues.

In United States 3 major car makers, GM, Ford and Chrysler are in the verge of bankruptcy due to extremely low sales and diminishing margins.

World's top premium car maker BMW's sales plunged in November by 25.4 percent to 96,570 units.

Japan's number two car maker Honda announced on Friday its withdrawal from popular Formula One car race.

The desperate attempt by Honda to cut costs shocked the motor racing world.

"We would love to be able to continue in Formula One, but we're simply not able to in the current financial climate." Takeo Fukui, Honda's chief executive, said in Tokyo on Friday.

Formula One, abbreviated to F1, is the highest class of auto racing and considered the world’s richest sporting series.

The F1 world championship season consists of a series of races, known as Grands Prix, held usually on purpose-built circuits, and in a few cases on closed city streets, the most famous of which is the Monaco Grand Prix in Monte Carlo.