TOKYO (AP) — Toyota plans to pull out of Formula One racing, the Mainichi newspaper reported Wednesday.

Toyota would follow Honda as the second major Japanese automaker to withdraw from the sport. Honda pulled out in December last year, citing a slowdown in the global economy. Brawn GP, which took over the old Honda team, won the 2009 F1 championship.

Toyota, the only Japanese automaker participating in F1 this year, is seeking to cut costs as it expects to post an operating loss for the six months ended September 30. The company is due to report earnings Thursday.

Japanese news agency, Kyodo, later cited unnamed sources close to the situation as saying Toyota Motor Corp. would withdraw from F1.