IT’S OFFICIAL TOYOTA PULLS OUT OF FORMULA 1: Read Their Formal Announcement; First Honda, Then BMW, Now Toyota; Who’s Next?

IT’S OFFICIAL TOYOTA PULLS OUT OF FORMULA 1:
READ THEIR FORMAL ANNOUNCEMENT; FIRST HONDA, THEN BMW, NOW TOYOTA; WHO’S NEXT? IT ISN’T MOTOCROSS YET

The world’s largest auto maker, Toyota, is withdrawing from the Formula 1 championship.Toyota is the third autoÿ manufacturer to abandon Formula One within a year, following in the wake of BMW and Honda.

Toyota blames the “abrupt economic challenges” that emerged last year for its departure. And it is not difficult to see where the problem lies. The financial crisis sent shock waves through the car industry. Toyota saw its sales tumble. At the same time, the rising value of the Japanese Yen took a heavy toll on its bottom line. In the year to the end of March, the company made a net loss of $4.4 billion, its first annual loss in nearly half a century. It is expected to lose even more money this year.

Toyota’s involvement in Formula One was very expensive.ÿ Toyota was rumored to be spending more than $400 million a year on its team. Yet the team never won a Grand Prix. Under the circumstances, Toyota clearly felt F1 was a luxury it could no longer afford.

Other Japanese firms are feeling similar pressures, prompting a remarkable exodus from top level motorsport. Bridgestone is to follow Honda and Toyota out of F1 at the end of next year and American motocross this year. Subaru and Suzuki have already abandoned the World Rally Championship, and Kawasaki has pulled out of motorcycle grand prix racing, Honda out of AMA road racing and Yamaha has switched to supporting outside motocross teams.

THE OFFICIAL ANNOUNCEMENT

Toyota Motor Corporation (TMC) announces it plans to withdraw from the FIA Formula One World Championship (F1) at the end of the 2009 season.

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 TMC’s motor-sports activities next year and beyond from a comprehensive midterm viewpoint reflecting the current severe economic realities,TMC decided to withdraw from F1.

TMC leaves F1 having compiled 13 podium and 87 point finishes over eight challenging seasons since 2002 with Panasonic Toyota Racing, a full-constructor team. It views its time in F1 – in which teams put forth their best efforts to fiercely compete at racings’ highest level – as an irreplaceable experience that provided an opportunity to develop both human resources and its R&D operations. TMC expresses its deepest appreciation to its F1 fans and others for their warm support.

TMC also wants to express its heartfelt gratitude to all Panasonic Toyota Racing drivers to date and to all Toyota Motorsport GmbH employees who have helped make the team’s achievements possible. TMC intends to do its best to find a solution for those parties who will be affected by any inconvenience this decision may cause.

Drawing on its experience in F1 and other motor sports, TMC intends to move forward in developing exciting production vehicles, such as the Lexus ?LFA’ supercar and compact rear-wheel-drive sports cars. In motor sports, it will not only race in various categories, but will also actively contribute to further development of motor sports by supporting grassroots races and planning events in which it is easy for people to participate.