Toyota Purchase Fuji Circuit; Announce Revamp Plans

Toyota Motor Corp, in a direct challenge to rival Honda Motor Co, revved up its Formula One plans on Wednesday with the purchase of a majority stake in a Japanese racing circuit.

Aiming to participate in Formua One in 2002 for the first time, Japan's largest automaker and the world's third-biggest intends to stage a Grand Prix at the circuit, located near Mount Fuji in central Japan.

"We are going to be revamping the facilities and that should be done by 2004. We want to stage a Grand Prix there as soon as possible after that," Toyota Executive Vice President Shinichi Kato told a news conference.

The Fuji International Speedway track, which staged two Formula One Grands Prix, in 1976 and 1977, is also located near a Toyota core research centre where it develops racing engines.

Honda, Japan's second-biggest carmaker, has two race tracks in Japan, including the Suzuka circuit, home to Japan's F1 grand prix since 1987 and which has renewed its contract until 2006. Usually only one F1 race is held in a country each year.

Honda re-entered Formula One in the 2000 season with the British American Racing team after an eight-year absence. Motor racing in Japan has traditionally been Honda's domain, as has the auto market for Japanese youth.

But Toyota's entry into motor racing's premier event is part of its long-term goal to change that -- a goal it has already moved closer to this year with a spate of popular new models such as the FunCargo wagon and bB van aimed at younger people.

"We are after the hearts of the younger generation and F1 can seen as part of our strategy," said Toyota President Fujio Cho.

Toyota will spend 5.3 billion yen ($48.72 million) for a 67 percent stake in the Fuji track, buying 49 percent from Mitsubishi Estate for 2.5 billion yen and the rest after Fuji International issues new shares.

Investing another 10 billion yen, it plans to revamp the course and stands as well as adding amusement facilities such as a kart course for ordinary drivers and children.

Toyota's entry into Formula One was delayed earlier this year after the automaker's original plans to use a V12 engine were blocked by a regulation change that committed Formula One to V10 engines.

Toyota does not have Honda's depth of experience, but it does have deep enough pockets to build a presence in this expensive sport, where maintaining a team is said to cost over $100 million a year as well as a respectable record in other motor sports.

It has won the World Rally Championship season title three times -- in 1993, 1994 and 1999 -- finished in second place three times at Le Mans and won five races in the CART championship, with its first race victory coming in June this year.

Finnish driver Mika Salo, formerly with the Sauber-Petronas team and sacrificing one year on the circuit to join the Toyota team, will be one of its two drivers.

With additional reporting by Mitsuo Suzuki