Second Blow
Schumacher, fastest in the second session of Saturday's knockout qualifying on a sunny afternoon, slowed almost immediately after leaving the pit lane.
He cruised round and stayed in the car as mechanics battled against the clock in a vain attempt to get him back out.
"Sure, it's a big handicap starting from 10th place," said Schumacher, who will be next to BMW Sauber's Polish driver Robert Kubica and behind younger brother Ralf and fellow-German Nick Heidfeld.
"The only good part of today is that Felipe is on pole which must be very satisfying for him here at his home race. I hope that tomorrow he can win the race."
It was the second blow in two grands prix for the 37-year-old, who had made a remarkable comeback to lift himself back into title contention after being 25 points behind Alonso at the end of June.
Schumacher had written off his title chances after the penultimate race of the season in Japan, when an engine failure robbed him of victory and handed Alonso 10 points instead, and Saturday's setback made them even more remote.
"It's pretty obvious that I'm not exactly happy about this but we had to absorb a technical setback in Suzuka and then one today," he told Germany's Premier television.
"It's obviously unfortunate that in such short succession this happens in a situation where it was important, as in Suzuka, and also here, where it would have made things interesting and attractive."
Massa refused to rule out the German's chances. "Michael was not lucky today, he seems to be not very lucky in the last two races," he said. He was very strong in every practice this morning and he has a very strong car for the race tomorrow. For sure he will fight a lot and hopefully we can finish in the front and make a first and second. Nothing is finished for him."
