Former Honda F1 team set to race on

The former Honda Formula One team all but confirmed their survival under new ownership on Thursday, with chief executive Nick Fry predicting an announcement "very shortly".

While avoiding outright confirmation that a management buyout had succeeded after months of tense waiting and media speculation, Fry made clear that he expected the British-based team to race on.

"I think it's correct to say that our team has and will benefit in the future from FOTA in two ways," he told a news conference held by the Formula One Teams' Association to outline proposals to cut costs and secure the sport's future in the face of the credit crunch.

"The first one is clearly that the cost reductions will help us enormously in the challenges that our team will face in the next two or three years.

"As important as the cost reduction is the level of support that we've enjoyed over the last three months from all the teams," he added.

Parent company Honda announced in December that it was pulling out of the sport due to the global financial situation, leaving the 700-strong team desperately seeking a rescuer before the season starts in Australia on March 29.

Team principal Ross Brawn and Fry have been leading an internal effort to save the team, albeit in a slimmed down guise, and are now seen as the sole viable option after Honda said last month that they could see no serious buyer.

Those previously expressing an interest were British entrepreneur Richard Branson's Virgin Group.

Brawn attended a meeting of Formula One team bosses in Geneva on Wednesday but, with his team expected to carry out a shakedown test of the new car at Silverstone on Friday, was absent from Thursday's news conference.

Britain's Jenson Button and Brazilian Rubens Barrichello, the Honda line-up last year, are the likely drivers again this season.

The team have not tested since Honda's announcement in December but a spokeswoman for Barcelona's Circuit de Catalunya told Reuters that they had confirmed their participation at a test starting on Monday with other teams.

McLaren's engine partners Mercedes have said they will provide engines.

"They (the team) will be making an announcement in due course," McLaren's new team principal Martin Whitmarsh said when asked about that deal.

"FOTA, as Nick has said, have worked very hard for them to be there (at the season-opener in Australia) and we really hope they are going to be there. Hopefully that is the case."