Toyota are pulling out of Formula One racing, the world’s largest automaker announced on Wednesday, saying they need to cut costs and focus on core business. The decision means for the first time in eight years, there’ll be no Japanese owned team on the F1 grid in 2010.

“Based on the current economic environment, we realise we have no choice but to withdraw from Formula One,” Toyota president Akio Toyoda said at a news conference. Toyota follow Honda as the second major Japanese automakers to withdraw from the sport. Honda pulled out in December 2008 amid worsening economic conditions. Officials called the withdrawal complete, making a return to the sport unlikely.

In July, Toyota-owned Fuji International Speedway announced they would not host the Japanese GP from 2010 amid faltering global economy. Japanese automakers Subaru and Suzuki pulled out of the World Rally Championship ahead of this season, citing concerns about the global economic crisis.

Toyota made their F1 debut in 2002 but have never won a Grand Prix. The team’s best result was in 2005, when Jarno Trulli finished second in Malaysia and Bahrain.

Despite a promising start to 2009, Toyota finished fifth in the constructors’ standings. Trulli finished eighth in the driver standings and Timo Glock 10th. Toyota, whose team principal Tadashi Yamashina was in tears at Wednesday’s news conference, compiled 13 podium and 87 points over eight seasons in F1.

The withdrawal will also leave just three manufacturers in F1 — Ferrari, Mercedes and Renault — as well as open the way for Sauber to become the 13th team in next year’s championship.