JAPAN/FILE: MOTROE RACING - Toyota is pulling out of Formula One

Record ID: 465055

  • Title: JAPAN/FILE: MOTROE RACING - Toyota is pulling out of Formula One
  • Date: 5th November 2009
  • Summary: TOKYO, JAPAN (NOVEMBER 4, 2009) (REUTERS) TOYOTA PRESIDENT AND CHIEF EXECUTIVE OFFICER AKIO TOYODA WALKING IN FOR NEWS CONFERENCE TOYODA WALKING UP TO PODIUM (SOUNDBITE) (Japanese) TOYOTA PRESIDENT AKIO TOYODA SAYING: "For the past eight years since 2002 we've been part of Formula One. We've debated this at our board meeting, but we've come to the conclusion that we have to pull out by the end of this year" MORE OF THE NEWS CONFERENCE (SOUNDBITE) (Japanese) TOYOTA PRESIDENT AKIO TOYODA SAYING: "Considering the worsening economic climate, our decision to pull out was unavoidable"
  • Embargoed: 20th November 2009 12:00
  • Keywords:
  • Topics: Sports
  • Reuters ID: LVAAO5OZ4PEE96TORB32BUMYQJYU
  • Story Text: Toyota is pulling out of Formula One for financial reasons, leaving Japan with any F1 representation.
    The Japanese company Toyota announced on Wednesday (November 4) that it is withdrawing from Formula One racing, leaving Japan without a team in motorsport's premier series.
    Company president and chief executive officer Akio Toyoda apologised for the team's failure to record a single race victory since joining F1 in 2002, in spite of an estimated annual budget of around 300 million U.S. dollars.
    "For the past eight years since 2002 we've been part of Formula One. We've debated this at our board meeting, but we've come to the conclusion that we have to pull out by end of this year," Toyoda told a news conference in Tokyo.
    "Considering the worsening economic climate, our decision to pull out was unavoidable," he said.
    Toyota has forecast an operating loss of 750 billion yen ($8.3 billion) on revenues of 16 trillion yen. It is scheduled to report second-quarter results on Thursday.
    Earlier this year, the company signed an agreement committing themselves to F1 until at least 2012, so the withdrawal could have legal ramifications.
    The decision by the world's largest carmaker to pull out of F1 comes as the auto industry starts to stabilise after a sales crunch in the wake of the global financial crisis.
    Cologne-based Toyota motorsport's departure as a team and engine supplier deals another blow to the sport after Japan's number two carmake, Honda, quit the series last December.
    Subaru and Suzuki have also withdrawn from the world rallying championship, while motorbike maker Kawasaki scrapped its MotoGP team in the grip of a severe market downturn.
    On Monday, Japanese tyremaker Bridgestone announced 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 downturn.
    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.
  • Copyright Holder: REUTERS
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