Another one bites the dust

Formula One plunges into deeper trouble with big names Toyota and Bridgestone exiting from it.

At first, it didn’t seem like that big a deal when Honda announced that they were pulling out of Formula One last December. But the situation now looks serious. First Bridgestone, and now Toyota, have decided to pull out of Formula One. Toyota says it wants to focus on its core business, and the huge costs involved are proving too much to bear. Bridgestone on the other hand has decided not to renew their contract after the 2010 season. Bridgestone is the only tyre supplier to all the teams, so naturally, this is a massive blow to the sport. New president Jean Todt’s tenure couldn’t have started on a worse note. Toyota has said that it was one of the hardest decisions they have had to make but in the end were left with no choice.

And it’s not only Formula One that is suffering from a financial meltdown. Suzuki and Subaru had already withdrawn from the world rally championship, while motorcycle maker Kawasaki has exited the MotoGP in the past year. This trend to quit does not stop there; Mitsubishi has left the Dakar Rally. Also, there have been reports that Renault is contemplating its future in Formula One.

Auto and financial experts feel that most automotive companies are gearing up to divert their resources, and money, towards green technology. Take the case of Toyota: the company has spent over $180 million annually since it entered Formula One in 2002. It didn’t help that the team didn’t manage to win a single grand prix during their stay in Formula One. The cost of sustaining a team in the sport is exorbitant which is why quite a few brands have opted to stay away from sponsoring teams. These are uncertain times for motorsports across the world. Japanese companies have suffered the most so far. However, even BMW Sauber has pulled out of F1.

Whether new teams will replace them or not remains to be seen. Among different disciplines, Formula One remains the biggest money spinner. For the first time, the off-season in the sport promises a lot of action. How much of it will be positive and how much negative? We will have to wait and watch.