Nov 4, 2009, 9:48 GMT
Tokyo - Toyota announced Wednesday it is to quit Formula One racing after seven years in the sport owing to the harsh economic realities affecting the Japanese carmaker.
Toyota Motor Corporation (TMC) announces it plans to withdraw from the FIA Formula One World Championship at the end of the 2009 season,' the company said a statement.
TMC, which had viewed its participation in F1 as contributing to the prosperity of automotive culture, remained dedicated to competing at the pinnacle of motor sports, even in the face of the abrupt economic changes that started last year.
However, when considering TMCs motor-sports activities next year and beyond from a comprehensive midterm viewpoint reflecting the current severe economic realities, TMC decided to withdraw from F1.' The carmaker is expected to report losses for the second consecutive year, due to collapsing sales in the United States and European markets.
Toyota revealed its worst set of figures for the financial year to March 2009, with further losses expected when it posts its results to September 2009 on Thursday.
Toyota's withdrawal was effective as of the end of the 2009 season, the company said at a press conference in Tokyo. The 2009 season ended on Sunday.
In a statement, Toyota thanked all Panasonic Toyota Racing drivers and employees of its racing team. The company would try its best to find a solution for all involved parties.
Toyota entered F1 in 2002, but failed to register a single victory in any of the 139 races it entered but was fifth in the 2009 constructors' championship.
The company's withdrawal follows the departure of Honda at the end of last season, meaning there is now now no Japanese carmaker involved in F1.
One Monday, Japanese tyre maker Bridgestone also announced its intention to quit F1 racing when its current contract expires at the end of next season.
In July, Toyota-owned Fuji International Speedway said it would stop hosting the Japanese Grand Prix from 2010 onwards.
However, Toyota's decision could be good news for Sauber, who have been taken over by the Swiss-based Qadbak Investments following BMW's withdrawal from the sport.
Sauber currently occupy 14th place for next season, meaning they are first reserve to take up any vacancy.
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