TOKYO (AFP) — Subaru said Tuesday it had withdrawn from the world rally championship with the end of the 2008 season because of the global financial crisis and falling car sales.
"Our business environment has rapidly deteriorated. In order to protect the Subaru brand we were forced to make this decision," Ikuo Mori, the president of Fuji Heavy Industries, which makes Subaru cars, told a press conference.
Mori fought back tears as he announced the decision, thanking fans.
The Subaru team won three manufacturer's championship titles and three driver's championship titles in its 19-year WRC participation.
"This, we believe, has helped us achieve our original goal of enhancing the value of the Subaru brand," Mori said.
He cited the global economic slump and falling car sales as major reasons for the exit, which he said was effective with the end of the 2008 season.
The company had already decided to pull out of the rally at the end of 2009 as the team has failed to shine in recent years, but brought forward the timing due to the severity of the business environment, he said.
"Since the autumn, the global economic turmoil has led to the rapid shrinkage of auto markets both in developed and emerging nations," he said.
The announcement came a day after Suzuki said it would not compete in the 2009 world rally championship largely because of the present financial crisis and follows Honda's shock withdrawal from Formula One earlier this month.
"Our investment is not as big as Formula One. But it is still a sizable amount for our company, particularly as we see the real economy deteriorating," said Mori.
He did not disclose the amount required to run the team but said the cost was in the order of "several billion yen." The dollar was trading Tuesday in the range of 90 yen.
"We must think about what kind of message we will send to car buyers. We will withdraw from WRC, but we want to convey the joy of driving through other means," he said.
Japanese manufacturers have expanded rapidly in recent years to meet brisk demand for their smaller, fuel-efficient cars, but they have not been immune to the financial crisis, even if they are in better shape than their US rivals.
Fuji Heavy Industries, which is part owned by Toyota Motor Corp., warned in August it expected a 46 percent fall in net profit in the year to March 2009.
Japanese truck maker Isuzu said earlier Tuesday it had shelved plans to jointly develop a clean diesel engine with Toyota due to the global economic downturn.
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