One day after Suzuki announced it was pulling out of the World Rally Championship, Japanese rival Subaru has confirmed it is also withdrawing from the series.
Fuji Heavy Industries, which owns the Subaru brand, blamed the ongoing global economic crisis for the decision.
"Our business environment has changed dramatically due to the rapid deterioration of the global economy," said a tearful Ikuo Mori, chief executive of Fuji Heavy. "In order to optimise the management resources and to strengthen the Subaru brand further, Fuji Heavy decided to withdraw from WRC activities at the earliest time."
The move, coupled with Suzuki's departure, leaves just Citroen and Ford as the only manufacturer teams in the series. Both those companies are assessing their participation in the sport as well.
David Richards, whose Prodrive company runs the Subaru team in the rally series, says he is saddened by the decision which brings to an end a 20 year relationship.
"Subaru's departure from the World Rally Championship is a great loss as it is one of the sport's icons," said Richards. "The Subaru World Rally Team has created true champions such as Colin McRae and Richard Burns and its absence will be felt by many the world over."
While there is no indication what will happen to current Subaru drivers Petter Solberg, Phil Mills, Chris Atkinson or Stephane Prevot, Richards says he is preparing for a return to the sport in 2010.
"Although this decision closes a significant chapter in Prodrive's history, our focus now turns to the future."
"Looking ahead, 2010 will see the introduction of new World Rally Championship technical regulations, which provide Prodrive with an opportunity to prepare for re-entering the championship with a new team and build on its 24 years of World Rally Championship experience and success."
Pirelli motorsport boss Paul Hembery, whose company just spent $15-million to be the sole supplier to the WRC, is calling for calm in the wake of the withdrawls, saying the future look strong for the sport.
"What's happening now is a re-shaping of the WRC," he said. "We've got manufacturers ready to commit cars to the new formula - manufacturers like FIAT, Volkswagen and Peugeot."
"I'm not just trying to talk this thing up, there's no doubt the loss of Subaru is sad for the sport, but we have to look ahead. We have to be pragmatic about next season and use it to build the platform to launch the sport into 2010."
The Subaru World Rally Team was established in 1989, when the Japanese manufacturer teamed up with Prodrive. Since then the team has won six World Rally Championship titles - most recently the drivers' title with Petter Solberg in 2003. It boasted some of the best drivers in the sport, including Carlos Sainz, Colin McRae and Richard Burns. In recent years, however, the team has struggled to find its previous rally winning form. It last won a rally on the stages in Mexico 2005.
This past year, the team finished third in the six team manufacturers championship.