TOKYO, Nov. 1, 2009 (Kyodo News International) --
(Editors: ADDING DETAILS)
Bridgestone Corp. said Monday it will stop supplying tires to the Formula One World Championship auto racing series at the close of the 2010 season in fall, citing the need to save costs and redistribute resources to environmental areas.
The F1 series will need to quickly find a new supplier to continue the motor race with the exit of Bridgestone, which has been supplying them from 1997 and has been an exclusive F1 supplier since 2008.
''The company focused on the need to redirect its resources toward the further intensive development of those innovative technologies and strategic products which support the company's goals,'' the Japanese tire maker said in a statement.
The move follows a series of decisions by automakers such as Honda Motor Co. (NYSE:HMC) and Suzuki Motor Corp. (OOTC:SZKMY) to withdraw from major racing events as companies cut spending to weather the tough economic conditions.
Bridgestone made the decision not to renew the supply contract to save costs, which could total up to several billion yen per year, a Bridgestone official said. The company also said it has fulfilled its objective of raising its brand image through the F1 participation.
The company logged a group net loss of 38.34 billion yen for the January to June period, against a year earlier profit of 37.24 billion yen.
Last month, it also announced that it will shed about 875 jobs in Australia and New Zealand due to a planned shutdown of manufacturing plants.
