Suzuki Motor Corp. said Monday it will suspend its participation in the FIA World Rally Championship next year as part of cost-cutting efforts amid slumping auto sales in the global economic turmoil.

The manufacturer of compact cars said it has decided to quit the WRC to streamline its current business operations and focus on core businesses such as production systems and environmental technologies.

Suzuki said it is "promptly taking possible countermeasures" in response to the contraction of auto sales. But the carmaker said it now "foresees the shrinking trend over longer periods of time rather than a short-term phenomenon."

It has not been decided when the company will resume participation and Suzuki will consider the possibility of disbanding its rally racing team, company officials said.

Suzuki has not disclosed rally-related costs, but they are estimated at several billion yen, according to sources.

Suzuki joined the Junior World Rally Championship in 2002 with its Ingis Super 1600 and started to take part in the WRC this year.

The major minivehicle manufacturer said it will continue to support customers who are taking part in the JWRC and other rally racing events overseas with the Swift Super 1600.

Suzuki, which also produces motorcycles, said it will continue to participate in motorcycle racing events such as MotoGP.

Japanese carmakers are stepping up efforts to review their businesses amid sharp falls in auto sales at home and abroad by reducing their workforces and forgoing capital investment.

Honda Motor Co. announced this month it will pull out of all Formula One activities due to deteriorating business conditions, making 2008 its last season in F1 motor racing.

Fuji Heavy Industries Ltd., which took part in the WRC this year under the name of Subaru, said it is considering whether to continue in the championship next year.