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Formula One 2016


JasonM

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Ron Dennis has today stepped down as chairman and chief executive officer of the McLaren Technology Group.

Dennis has been involved with McLaren since 1980, but after 36 years a decision has been taken by the majority shareholders to place him on gardening leave until his contract expires in January.

Dennis last week tried unsuccessfully to seek a High Court injunction to prevent such a move from taking place.

The 69-year-old remains on the boards of both McLaren Technology Group and McLaren Automotive Ltd, as well as being a significant shareholder in both companies.

Dennis currently holds a 25% stake in the McLaren Group, with a further 25% owned by long-time business partner Mansour Ojjeh, and the remaining 50% in the hands of Bahrain sovereign wealth fund Mumtalakat.

Prior to this move Dennis had been involved in a two-year behind-the-scenes power struggle, most recently making a last-ditch takeover bid with a Chinese consortium worth a reported £1.65billion.

With that failing, Ojjeh and Mumtalakat then launched their own countermeasure to remove him from office.

A statement claimed Dennis intends to honour his commitments to the group before launching a new technology investment fund later next year.

Dennis said: "I am disappointed that the representatives of TAG and Mumtalakat, the other main shareholders in McLaren, have forced through this decision to place me on gardening leave, despite the strong warnings from the rest of the management team about the potential consequences of their actions on the business.

"The grounds they have stated are entirely spurious; my management style is the same as it has always been and is one that has enabled McLaren to become an automotive and technology group that has won 20 Formula 1 world championships and grown into an £850million a year business.

"Throughout that time I have worked closely with a series of talented colleagues, to whom I will always be extremely grateful, to keep McLaren at the cutting edge of technology, .

"Ultimately it has become clear to me through this process that neither TAG nor Mumtalakat share my vision for McLaren and its true growth potential.

"But my first concern is to the business I have built and to its 3500 employees. I will continue to use my significant shareholding in both companies and my seats on both boards to protect the interests and value of McLaren and help shape its future.

"In addition I intend to launch a new technology investment fund once my contractual commitments with McLaren expire.

"This will capitalise on my expertise, my financial resources, together with external investment to pursue the many commercial opportunities I have been offered in recent years but have been unable to take up while being so committed to the existing business."

McLaren has hailed Ron Dennis as "one of the true greats" of Formula 1 despite now being in the process of seeking a new CEO.

Dennis has stepped down from his roles as chairman and chief executive officer of the McLaren Technology Group, with fellow shareholders Mansour Ojjeh and Bahrain sovereign wealth fund Mumtalakat placing him on gardening leave.

The moves follow a two-year behind-the-scenes battle for control of the organisation.

McLaren issued a statement on Tuesday night recognising Dennis's achievements during his time with the team, but insisting it is now appropriate for the company to be given new leadership and direction.

"As of this afternoon Ron Dennis no longer holds the position of chief executive officer of McLaren Technology Group (or its subsidiaries)," the statement read.

"However, he remains a shareholder and a director of the McLaren Technology Group.

"Over the past 35 years Ron's contribution to the success of McLaren has been colossal.

"During his tenure the team won 17 world championships and 158 grands prix, making him the most successful leader in Formula 1 history.

"Like the company's founder, Bruce McLaren, Ron is, and always will be, one of the true greats of the sport."

McLaren said the process of finding a replacement for Dennis in the CEO role had begun.

"McLaren Technology Group is now in the process of seeking a new chief executive officer," the statement added.

"Until such an appointment has been made the company will be run on an interim basis by an executive committee comprising the group's majority shareholders."

McLaren said the decision will be made "in close collaboration with the board of directors and senior management team, all of whom remain utterly committed to the company, its partners, its employees and its fans, and share a passionate determination to build on our many strengths towards future prosperity".

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It's a shame RD had to be pushed out of the team in such a cynical and political way, but knowing how F1 works it's slightly poetic that Dennis gets axed through backroom politics.

Still, it's not a fair deal on a guy that's never been afraid of making hard decisions for the betterment of the team. He's been a bad guy, and for years he was the only one standing between Ferrari and dominance. But ultimately, the results say that in the past 16 years he's just not delivered consistent success.

Which makes it saltier that he gets pushed away on the tail-end of this McHonda rebuild, rather than at the start of it. And I don't think they're gonna find a better CEO than Ron Dennis was. And replacing such a prominent figure without a clear successor in place, it's just going to extend the woes of McLaren for a good few years extra.

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Shame Malaysia is being dropped, it's arguably the best Tilkedrome made, and it always made for exciting and interesting races.

Also, Zak Brown's a great get for McLaren, he's got a great business mind. This pretty much means that their new power structure is in place, with Eric Boullier being the main guy on raceday now that Ron Dennis is gone.

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Manor driver Pascal Wehrlein has emerged as the leading candidate for Sauber's second Formula 1 seat in 2017.

The Swiss team announced earlier this week that Marcus Ericsson would stay for a third season next year.

Sauber had been expected to also retain Felipe Nasr, but his main sponsor Banco do Brasil is stalling on confirming it will continue to back the Brazilian.

As a result, talks have broken down with Sauber, dropping Nasr to the bottom of the team's shortlist.

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2 hours ago, Adam said:

Inevitable I suppose, but still a shame. Jenson is probably my second favourite driver of all time after Mark Webber, with him and Massa now going I am having to accept the reality of the very end of the era of F1 I grew up with.

The era of F1 I grew up with passed a long time ago :( 

About '96 to '03 were probably my favourite times.

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Well, Nasr's F1 career is as good as done unless he can get really lucky. Banco do Brasil has officially announced they will end their partnership with Sauber (and in effect, end their sponsorship backing with Nasr).

Which means that if Nasr can't find another drive for 2017, it'll be the first time in 47 years that there won't be a Brazilian (or any South American) driver on the F1 grid.

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2 hours ago, Jasonmufc said:

Well, Nasr's F1 career is as good as done unless he can get really lucky. Banco do Brasil has officially announced they will end their partnership with Sauber (and in effect, end their sponsorship backing with Nasr).

Which means that if Nasr can't find another drive for 2017, it'll be the first time in 47 years that there won't be a Brazilian (or any South American) driver on the F1 grid.

You say that - watch Maldonado come crashing back <_<.

Meanwhile, teams and Bernie Ecclestone have agreed in principle to introduce standing starts after safety car periods from 2017 onwards.

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