Toyota, the biggest car manufacturer in the world, announced last week that it will pull out from Formula 1 at the end of the 2009 season — citing the current economic situation as the main reason for its departure.

“Toyota Motor Corporation (TMC) announces it plans to withdraw from the FIA Formula 1 world championship at the end of the 2009 season,” read the Toyota statement.

TMC, which had viewed its participation in F1 as contributing to the prosperity of automotive culture, remained dedicated to competing at the pinnacle of motorsports even in the face of the abrupt economic changes that started last year.

"However, when considering TMC's motorsports activities next year and beyond from a comprehensive mid-term viewpoint reflecting the current severe economic realities, TMC decided to withdraw from F1."

Toyota's future in F1 had been in doubt after the company reported its first ever operating loss in the first quarter of this year.

Rumors that the Team will pull out from the series mounted after Toyota pulled out its Fuji track from hosting Formula 1 races and when customer team Williams decided to end its engine supply deal one year early.

However, things looked brighter for the team later in the season after Toyota signed the new Concorde Agreement that committed them to the world championship until 2012.

Toyota F1’s John Howett stressed that the team would race in 2010 although with a much reduced budget.

TMC leaves F1 having compiled 13 podium and 87 point finishes over eight challenging seasons since 2002 with Panasonic Toyota Racing.

“TMC also wants to express its heartfelt gratitude to all Panasonic Toyota Racing drivers to date and to all Toyota Motorsport GmbH employees who have helped make the team's achievements possible," said the statement.

"TMC intends to do its best to find a solution for those parties who will be affected by any inconvenience this decision may cause."

With Toyota out of the picture, the former BMW Sauber team now has a chance to claim the final slot in the series and challenge next year’s championship.