Toyota Motor Corp. President Hiroshi Okuda announced Thursday in Tokyo that Japan's No. 1 automaker will enter Formula One racing by 2003 and launch research and development activities including engine and chassis development.
The Toyota F-1 team will be based in Cologne, Germany, where Toyota's World Rally Championship team is based, the officials said.
Toyota's participation in F-1 racing is expected to improve the automaker's popularity with youngsters, a major weak spot in its marketing operations. Toyota also believes the move will enhance its brand image in Europe, where the sport enjoys high popularity.
The move sets the stage for 21st century circuit battles between Toyota and rival Honda Motor Co., which has also expressed an intention to return to F-1 racing as early as 2000.
Toyota said it would continue to support teams this year in the CART-sanctioned FedEx Championship Series, the World Rally Championship and the Le Mans 24-Hour Endurance Race.