Tokyo, Nov 4 (DPA) Toyota Motor Corp announced Wednesday it was to quit Formula One racing, owing to the harsh economic realities affecting the Japanese carmaker.

The carmaker is expecting to report losses for the second consecutive year, due to collapsing sales in the US and European markets.

Toyota's withdrawal was effective as of the end of the 2009 season, the company said at a press conference in Tokyo. The 2009 season ended Sunday.

In a statement, Toyota thanked all Panasonic Toyota Racing drivers and employees of its racing team. The company would try its best to find a solution for all involved parties.

The carmaker debuted in Formula One in 2002, but has never celebrated a Grand Prix win. In the 2009 season its drivers Jarno Trulli and Timo Glock finished eighth and 10th respectively in the drivers' standings.

With the departure of the world's biggest carmaker, no Japanese carmaker remains in Formula One. Honda Motor Co withdrew from Formula One racing last December.

On Monday, Japanese tyre maker Bridgestone also announced plans to abandon F1 racing when its current contract expires by the end of the 2010 season.

In July, Toyota-owned Fuji International Speedway said it would stop hosting the Japanese Grand Prix from 2010 onwards.