Toyota to quit Formula One

• Source: Global Times
• [08:29 November 05 2009]
• Comments

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."

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 today, has idled plants and slashed thousands of jobs as it tries to weather its biggest ever crisis.

Agencies