TOKYO - TOYOTA Motor Corp announced on Wednesday it is pulling out of Formula One racing, citing a need to cut costs and focus on its core business.

Toyota follows Honda Motor Co as the second major Japanese automaker to withdraw from the sport. Honda pulled out last December amid worsening economic conditions. Brawn GP, which took over the old Honda team, won the 2009 F1 championship.

Toyota, the world's largest car manufacturer, is seeking to cut costs as it expects to post an operating loss for the six months ended Sept 30. It is due to report earnings on Thursday. The company posted its worst ever loss in the financial year ended March.

Like other Japanese exporters, Toyota is hurt by a strong yen. The dollar has recently hovered around 90 yen. Akio Toyoda, grandson of the company?s founder who became president this year, has vowed to avoid a third straight year of losses.

On Monday, Japanese tire manufacturer Bridgestone Corp announced it would not renew its exclusive deal to supply tires for F1 when its contract expires in 2010.

That announcement came one day after the 2009 F1 season concluded with the Abu Dhabi GP. Toyota made its F1 debut in 2002 but has never won a grand prix. The team's best result was in 2005 when Jarno Trulli finished second in Malaysia and Bahrain. -- AP