Toyota said on Wednesday that it will pull the plug on its Formula One program immediately. The news was announced by company boss Akio Toyoda in Tokyo, 11 days before a much-anticipated meeting at which the team's budget was to be discussed.
Toyota's withdrawal comes following the departure of Honda 11 months ago and confirmation from Bridgestone on Monday that it will leave F1 at the end of 2010. The moves leave Japan with no strong connections to the sport for the first time since Honda's return in 1983.
Toyota arrived in F1 amid great fanfare in 2002. While it has earned pole positions and podiums--the red and white cars finished second in two of the last four races of this year--there had been no wins.
Although there were doubts about the company's long-term commitment, the fact that it had signed the new Concorde Agreement in July and appeared to be negotiating with drivers seemed promising. The incumbent drivers were let go, but it's believed that no contracts had yet been signed with any replacements.
It remains to be seen whether Toyota is able to sell the team, but the fact that it is based within a larger site owned by the company means it will be much harder to sell as an independent entity.
The facility is too large for any purchaser who inevitably will want to downsize and cut staffing levels, as happened when Honda was passed on via a management buyout to Ross Brawn. It also is not clear whether an engine-supply arrangement would be made available to any buyer, although this would seem unlikely.
If the team does not continue, there could be legal action against Toyota from the FIA and/or Bernie Ecclestone, since the team had made a three-year commitment when it signed the Concorde Agreement. BMW chose not to do so, having decided to pull out. But that meant the Sauber team purchaser Qadbak had to start as a fresh entity and has been waiting on the reserve list for one of the other 13 teams to drop out.
Toyota could scale down the motorsports side of the Cologne operation and operate a sports car, rally or touring-car program. It last competed at Le Mans in 1999.
Costs are the reason
Toyota says economic realities are the reason it is pulling out of Formula One.
In a statement, Toyota thanked the team and confirmed that it would stay involved in other forms of motorsport. There is no news on any possible attempt to sell the F1 team. But Toyota says it hopes "to do its best to find a solution for those parties who will be affected by any inconvenience this decision may cause."
The decision happened quickly because the statement was issued in Tokyo while the F1 staff in Cologne was being informed. Even the team PR department didn't know what was being sent out.
The statement reads:
"Toyota Motor Corp., 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 racing's 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."
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