Fuji Heavy Industries, the maker of Subaru cars, said on Tuesday it would pull out of the world rally championship citing the global economic crisis.
Subaru joins fellow Japanese automaker Suzuki Motor, which announced its exit a day earlier, and leaves no other Japanese automaker left in the race.
Carmakers all over the world are under severe pressure to reduce spending as they bleed cash due to a sudden downturn in global car demand.
Honda, Japan's No.2 automaker, this month quit Formula One racing for similar reasons.
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