Earlier today, a British newspaper reported that the Formula 1 team currently known as Honda was in talks with the British government in the hope of qualifying for a loan.

Business Secretary Lord Mandelson has announced a 5-billlion dollar bailout package for the ailing car industry, and the Brackley based team confirmed it is set to apply for some of the taxpayer-funded help.

Asked whether the team qualifies, a spokeswoman for the Department for Business, Enterprise and Regulatory Reform (BERR) told the Guardian newspaper: "There is no reason why Honda Racing couldn't apply."

However, Honda have made it clear later today that suggestions their Formula One team could receive a government bail-out are totally incorrect.

A spokesman for the Honda Motor Company told autosport.com that although there had been discussions with BERR about the team, there was never any plan to receive a government handout.


Photo Credit : Honda