Jenson Button's German Grand Prix hopes were in ruins after he was docked 10 places on the grid.
A fault was found in Button's BAR Honda engine after he was forced to pull up at the end of Friday practice.
It has had to be replaced at the cost of a 10-place grid penalty - which means even if he qualifies in pole he would start the race from 11th.
"It's very disappointing. I'll still be targeting a points finish but the task is now a lot more difficult," he said.
Button had been confident of a strong result after finishing fourth in practice and had been pleased with the way his car was running.
"In our long runs we have been very strong," said Button, who was a disappointed fourth at Silverstone two weeks ago.
"On my long runs, the only person that is quicker is Michael (Schumacher)."
Schumacher was fastest as usual, clocking one minute 15.001 seconds, just ahead of McLaren's Kimi Raikkonen.
Juan Pablo Montoya was third while Ferrari's Rubens Barrichello was ninth and McLaren's David Coulthard 11th.