Toyota Motor was expected to announce on Wednesday it is quitting Formula One, joining an exodus of Japanese automakers from the multi-million dollar sport due to the global economic crisis.
Japan's Toyota Motor announced on Wednesday it was quitting Formula One racing, joining an exodus of Japanese automakers from the sport due to the global economic crisis.
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Toyota said its decision to withdraw after this year's season - which ended Sunday in Abu Dhabi - reflected "the current severe economic realities."
The company is expected to look for a buyer in Europe for its F1 team, the Kyodo News agency reported, citing unnamed sources close to the matter.
Honda and BMW have already exited F1 to cope with the credit crunch and Toyota's withdrawal would leave no Japanese automaker left in the high-octane motorsport, raising fresh fears for its future.
Toyota's team has not won a grand prix since its 2002 debut on the F1 circuit and finished this season ranked fifth in the constructor championship.
The Mainichi newspaper said the auto giant had earlier planned to continue its F1 participation until 2012 but decided to cut costs by making this year's season - which ended Sunday in Abu Dhabi - its last.
Facing a collapse in worldwide car sales, Toyota has already pulled out of hosting the Japanese Grand Prix at its Fuji Speedway circuit from next year. Other firms have also been withdrawing from motor sports.
On Monday Bridgestone said it would end its contract as the official tyre supplier to F1.
Honda announced in December its shock withdrawal from F1, selling its team to former principal Ross Brawn - reportedly for just one British pound.
Suzuki and Subaru meanwhile have withdrawn from the world rally championship, while motorcycle maker Kawasaki has exited the MotoGP and Mitsubishi is quitting the Dakar Rally despite a dozen victories.
Toyota's decision to exit F1 comes as the global economic downturn forces Japanese automakers to slash costs and step up their focus on environmentally friendly cars such as petrol-electric hybrids.
"Not only Toyota, but all auto makers, are now under pressure to concentrate their investment in green technology," said Mamoru Kato, an auto analyst at Tokai Tokyo Research Center.
"Toyota launched the F1 business in an effort to boost sales in Europe by improving its brand image there, but the impact appears to have been smaller than expected," said Kato.
Toyota overtook US rival General Motors in 2008 as the world's top selling automaker but it fell into the red for the first time in the year to March 2009 and expects another big loss this year.
The Japanese maker, which is due to announce its interim financial results on Thursday, has idled plants and slashed thousands of jobs as it tries to weather its biggest ever crisis.
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