Toyota Readies for F1 with Race Track Purchase

Japan's Toyota Motor Corp said on Wednesday it would buy a major stake in a motor racing circuit as part of its preparations for a return to Formula One racing in 2002. Car industry sources said Toyota wants to use the circuit, located near the famous Mount Fuji in western Japan, to test its F1 cars and aims eventually to stage grand prix there.

Toyota said it would hold a news conference to give more details on the purchase next week.

Earlier this month, Toyota said it was in talks with Mitsubishi Estate to buy a stake in Fuji International Speedway Co Ltd, which owns the circuit.

Mitsubishi Estate owns an 80 percent stake in the racing track firm, while the rest is owned by general contractor Taisei Corp

The track, which staged two F1 grand prix in 1976 and 1977, is also located near Toyota's Higashi Fuji technical centre, its core research centre where it develops racing engines.

Media reports said Toyota would spend six billion yen ($55.69 million) to buy its stake in the track.

Rival Honda Motor Co Ltd, Japan's second biggest carmaker, has two race tracks in Japan - Suzuka in western Japan and Twin Ring Motegi in Tochigi, about 80 km (50 miles) north of Tokyo.

The Suzuka circuit has been home to Japan's F1 grand prix every year since 1987 and it renewed the contract last May for another five years.

Toyota will enter F1 in the 2002 season for the first time in its history, aiming to improve its image among young people. Honda returned to F1 in the 2000 season with the British American Racing (BAR) team after leaving F1 at the end of 1992.