Toyota pulls out of F1

Toyota withdrew from Formula One with immediate effect yesterday, leaving Japan without a team in motorsport's premier series.

Company president Akio Toyoda apologised for the team's failure to record a single race victory since joining F1 in 2002 despite an estimated annual budget of around $300 million.

"It was a very difficult but unavoidable decision," Toyoda told a news conference in Tokyo.

"Since last year as the economic climate worsened, we have been struggling with the question of whether to continue in F1.

"We are pulling out of Formula One completely. I offer my deepest apologies to Toyota's many fans for not being able to achieve the results we had targeted."

The decision by the world's largest carmaker to quit the glamour sport comes as the auto industry starts to stabilise following a sales crunch in the wake of the financial crisis.

Cologne-based Toyota's departure as a team and engine supplier deals another major blow to the sport after Japan's number two carmaker Honda quit the series last December.

It leaves Japan without a team in F1 and continues the drain of Japanese companies from motorsport, which has seen Subaru and Suzuki withdraw from the world rallying championship.

Bike-maker Kawasaki also scrapped its MotoGP team in the grip of a severe market downturn.

Japanese tyremaker Bridgestone announced on Monday they would not renew their supply contract with Formula One after the 2010 season.

In July, Toyota's Fuji International Speedway circuit surrendered hosting rights for the Japanese Grand Prix in 2010 and beyond to reduce costs amid the global economic crisis.

"Since becoming president in June I have attempted to concentrate on delivering Toyota's product to customers," said Toyoda.

"That is where we have to focus our resources now. We stressed our commitment to F1 last year and we have done our best over the past season, but it was no longer viable to continue."

Toyota, whose team principal Tadashi Yamashina was in tears at the news conference yesterday, compiled 13 podium and 87 points finishes over its eight seasons in Formula One.

Toyota's exit leaves just three manufacturers in Formula One - Ferrari (FIAT), Mercedes and Renault. It also opens the door for BMW-Sauber's new Swiss owners to take their place as the 13th team on the grid.