Despite unprecedented losses, Toyota re-commits to F1

Posted on 24 December 2008. Tags: F1, Formula One, Toyota

Facing huge first quarter losses, Toyota reaffirmed its commitment to the grossly expensive sport of Formula One Racing. After the withdrawal of its main competitor Honda, fears arose that Toyota would be next.

In a statement to the Guardian newspaper, a spokeswoman for Toyota said “We have absolutely no plans to withdraw from formula one.”

Toyota F1 team president John Howett also confirmed its commitment to the sport. “I guess everybody, not only motorsport teams, faced with the financial turmoil at the moment, is managing their business correctly, but I don’t think we are living hand-to-mouth or from day-to-day.” Howett is the vice-chairman of the Formula One Teams Association (FOTA). Just last week, FOTA called for a re-evaluation of revenue distribution in F1. Currently, F1 teams receive about 50% of revenues from the commercial rights holder, FOM. An increase in revenues, coupled with mandatory spending cuts, would go a long way to solidifying not only the future commitment of teams in the sport, but the sport altogether. FOM, specifically Bernie Ecclestone, did not seem to warm up to the idea, instead lashing out at FOTA’s chairman Luca di Montezemolo. To be continued…

Source: The Guardian

Image courtesy of Toyota F1

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