BARCELONA, Spain -- The problems are mounting for Jordan-Honda, which just a few seasons ago was running close to Formula One's top teams.

On the track, Jordan is without a point after five races, and the April 28 Spanish Grand Prix reflects the dismal season: a hydraulic failure forced Giancarlo Fisichella to retire on lap five and teammate Takuma Sato spun off after 10.

	Eddie Jordan, pictured with drivers Takuma Sato, left, and Giancarlo Fisichella, right, has begun downsizing the team.

Off the track, the team could be without an engine supplier next season. Honda also supplies British American Racing and is considering revamping its F1 strategy and focusing on just one team.

Jordan has struggled since finishing third in 1999, the team's best finish. The year before, chief executive officer and team founder Eddie Jordan sold 40 percent of his team to an investors group for $60 million, a handsome profit for a team that entered F1 in 1991.

In 2000, Jordan slipped to sixth, and last year, in the first of a lucrative three-year deal with Honda, Jordan earned only two more points.

Several reports suggest Jordan faces losses this year of $18 million.

To cut costs, Jordan laid off employees last month, which only added to massive turnover on the team in the last year. Key engineers and technical staff have been dismissed, including technical director Egbahl Hamidy, senior race engineer David Brown, head of engineering Tim Holloway and joint managing director Trevor Foster.

Testing has also been cut back, and Jordan lost its highly regarded press chief Giselle Davies, who became director of communications at the International Olympic Committee.

Jordan says the problems facing his team have been caused by the downturn in the world economy, which has hit F1 hard as free-spending sponsors have backed off from the cash-guzzling Grand Prix circuit.

"My company is not going to risk going out of business and it's not going to go out of business," Jordan said. "I will do what I have to do to stay in business.

"This is my life and my passion. The redundancies were disappointing, but not a difficult thing to do because it had to be done. The company has made a profit most years."

Jordan's biggest problem may be finding a new engine supplier next year.

Honda is reportedly considering ending the three-year deal after this season (it's supposed to run through the 2003 season) and concentrating on British American Racing. Honda pulled out of a similar deal with Williams after the 1987 season.

There is also pressure on Honda, which dominated Formula One a decade ago, to field its own team. BAR -- owned by British American Tobacco -- looks like a possible buyout target, with tobacco sponsorship in F1 outlawed after the 2006 season.

Honda rival Toyota has been successful in establishing a team in its own name this season, following a trend that has seen growing roles in F1 for car manufacturers such as Mercedes, BMW, Renault and Ford.

Honda, however, has continued its strategy of building engines and expecting its two teams to build cars around them.

Ferrari's technical director Ross Brawn said the integrated approach was responsible for Ferrari's success -- and has suggested it for Honda.

"It's clear that successful teams have to be one entity -- chassis and the engine," he said. "Renault has taken that route and it is a strength of Ferrari. Honda needs to bite the bullet. They look like a supplier of engines as opposed to a partner and need to get it together with a team and become one."

Honda is the biggest spender in F1 (about $250 million yearly) and isn't getting much for its money. This year's new V-10 engine is underpowered and developing fewer than 800 horsepower.

Jordan knows the pressure is on, but denies he is looking for a new engine. If Jordan has to buy its own engines instead of getting them for free, it could be costly.