Toyota Sign Major Sponsorship Deal with Matsushita

As anticipated on Monday by Atlas F1's The Daily Grapevine, Matsushita Electric Ltd. and Toyota Motor Corporation announced on Tuesday they have signed an agreement that will see Matsushita becoming Toyota Formula One racing team's main sponsor next season.

Under the agreement, the Toyota Formula One team, due to make their Grand Prix debut in 2001, will be named "Panasonic Toyota Racing" and the cars will bear the Matsushita brand logo "Panasonic" on their sides and rear wing. The term of the sponsorship is five years from 2002 through 2006.

Matsushita President Kunio Nakamura voiced hope that the contract would help to raise the profile of its brand name.

"I am hoping the brand name of Panasonic will be better known worldwide, particularly in Europe," he told a news conference.

The contract mainly covers technological support by Matsushita with an emphasis on electronics, but Toyota President Fujio Cho said his company would try to expand the two firms' cooperative ties.

"We hope to be able to deepen our relationship with Matsushita in various fields," Cho said.

Matsushita has supplied electronic devices to Toyota, the third biggest car manufacturer in the world, for more than 30 years including car audio equipment and navigation systems. Though no financial details were given about the agreement, the deal is thought to be worth some $30 million per year.

The Germany-based Toyota team will fill the twelfth spot in Formula One next season after spending 2001 carrying out an intensive testing programme with drivers Mika Salo and Allan McNish.