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January 15, 2009
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Toyota The Latest NASCAR Supplier To Face Potential Budget Cuts

Toyota Racing Program Could Feel Effect Of 
Declining Auto Sales Amid Economic Crisis
Toyota Racing Development President & GM Lee White yesterday said that he "expects budget cuts in its NASCAR program" as the manufacturer "feels the effects of the global economic crisis," according to Jenna Fryer of the AP. Toyota has been "typically immune from the declining sales that have rocked" GM, Chrysler and Ford. But the company recently indicated that it "anticipates its first yearly operating loss in 70 years for the fiscal year ending" March '09. White yesterday predicted that the losses "will have a ripple effect on Toyota's racing program." White: "There is a review of everything. Certainly if contracts have expired, it's very likely that contracts have not been renewed, or if they are being renewed, they are certainly being renegotiated." White said that Toyota's declining auto sales are "proof that its racing operation can not recklessly spend just to beat the cash-strapped competition." But White said that he "didn't expect any manufacturers to make on-track reductions" (AP, 1/14).

STICKING IT OUT IN F1: REUTERS' Alan Baldwin reports Toyota will be the "only remaining Japanese manufacturer on the [F1] starting grid" this season after the departures of Honda and Super Aguri. But due to the operating loss expected this year, Toyota's "continued presence has come under scrutiny." Toyota Racing President John Howett said that his team "has to demonstrate to the Toyota board that the money was well spent." Howett: "Provided Formula One remains a sensible sport to be involved in ... I think we have the possibility with good results to remain in Formula One for the forseeable future" (REUTERS, 1/15).

MERCEDES COULD TAKE HONDA'S TEAM: In Manchester, Alan Henry reported Mercedes-Benz indicated that it "could be in a position to supply engines to the former Honda [F1] team in the event of a takeover" of the team "leaving it on a sound financial footing." Honda last month said that it "would close the team" if a seller could not be found (GUARDIAN.co.uk, 1/13). Mercedes Motorsport VP Norbert Haug: "If there is a feasible solution with an investor for that team, we would be prepared to discuss it" (AUTOSPORT.com, 1/13).


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