Mitsubishi will no longer compete in the Dakar Rally for financial reasons, the company announced yesterday.

The announcement came as Japan's fourth-largest automaker said its group net loss will amount to 60 billion yen ($670 million) in the fiscal year through March 2009.

"The sudden deterioration of the global economy made it necessary for the company to focus its resources more tightly," Mitsubishi Motors said in a statement.

In its 26 entries in the Dakar Rally, Mitsubishi Pajeros won the rally a total of 12 times, including seven consecutive victories from 2001-2007.

The Japanese manufacturer finished seventh in the car section of the 2009 race.

The withdrawal of Mitsubishi from the Dakar Rally is the latest move by a Japanese company to pull out of auto racing.

Japanese manufacturers Subaru and Suzuki pulled out of the World Rally Championship in December shortly after Honda, Japan's second biggest car manufacturer, withdrew from Formula One, while Kawasaki has withdrawn from Moto GP.