Competing in Formula One can be tough, just ask Honda when last December the famous Japanese motor manufacturer quit the sport due to a lack of results.
Fast-forward seven months on and we come to a situation where another major manufacturer is pulling out. This time it is BMW.
Why are BMW withdrawing from Formula One? Dr. Norbert Reithofer, chairman of the BMW board, said that the decision was made after a refining of the company’s future strategy.
Read the full press statement below:
The BMW Group will not continue its Formula One campaign after the end of the 2009 season. Resources freed up as a result are to be dedicated to the development of new drive technologies and projects in the field of sustainability. BMW will continue to be actively involved in other motor sports series. The landmark decision to restructure BMW Motorsport’s activities was made at the Board of Management’s meeting yesterday.
“Of course, this was a difficult decision for us. But it’s a resolute step in view of our company’s strategic realignment,” explained Dr. Norbert Reithofer, Chairman of the Board of Management of BMW AG. “Premium will increasingly be defined in terms of sustainability and environmental compatibility. This is an area in which we want to remain in the lead. In line with our Strategy Number ONE, we are continually reviewing all projects and initiatives to check them for future viability and sustainability. Our Formula One campaign is thus less a key promoter for us. Mario Theissen has been in charge of our motor sports program since 1999. We have scored a large number of successes in this period, including some in Formula One racing. I would like to express my sincere gratitude to Mario Theissen and his team for this,” said, Reithofer.
Dr. Klaus Draeger, the member of the Board of Management responsible for development, said: “It only took us three years to establish ourselves as a top team with the BMW Sauber F1 Team. Unfortunately, we were unable to meet expectations in the current season. Nevertheless, our ten years of Formula One experience have had a major impact on our development engineers. We have racing to thank for numerous technological innovations as well as the competitive spirit that drives us to develop mass-produced cars.” Possible redundancies in Munich and Hinwil cannot be quantified at present. Says Draeger: “Since we only made this decision yesterday, we cannot provide any more precise information. We will develop and assess various scenarios and do our best to find a solution for the employees in Hinwil and the staff members involved in the Formula One project in Munich. We are aware of the responsibility we shoulder and will inform the staff as soon as we can make a clear statement.”
Says BMW Motorsport director Dr. Mario Theissen: “Of course, we, the employees in Hinwil and Munich, would all have liked to continue this ambitious campaign and show that this season was just a hiccup following three successful years. But I can understand why this decision was made from a corporate perspective. We will now focus sharply on the remaining races and demonstrate our fighting spirit and put in a good result as we bid farewell to Formula One racing.”
BMW will continue its programs in a number of motor sports series: BMW will appear on the starting grid in the touring car series and young driver promotion program in Formula BMW. This will be supplemented by BMW’s participation in ALMS, the American Le Mans Series, endurance races and close-to-production customer sports. Furthermore, BMW Motorrad Motorsport will continue its campaigns, with the super bike world championship leading the way.
BMW looks back on a long track record of success in the field of motor sports:
BMW achieved eight Formula One victories from 1982 to 1985 with Brabham. In 1983, BMW won the driver’s championship with Nelson Piquet (Brabham BMW). The last win with the legendary turbo engine followed with Benetton in 1986. Ten victories were scored during the partnership with Williams (2000-2005). BMW had a total of 19 grand prix wins and 33 pole positions before the BMW Sauber F1 Team era.In its debut season in 2006, the newly established BMW Sauber F1 Team wound up fifth in the constructor’s championship. In 2007, the German-Swiss team came in second after McLaren-Mercedes’ exclusion from the points standings. The 2008 season saw the team in the hunt for the world championship until the end of the season, winding up third. Polish-born Robert Kubica achieved the first and hitherto only GP victory in Canada on June 8, 2008. So far, the BMW Sauber F1 Team has taken one pole position (Kubica in Bahrain in 2008) and 16 podium finishes. The BMW Sauber F1 Team occupies the eighth spot in the manufacturer’s standings in the season presently underway.
What a real shame that BMW are pulling out at the end of 2009. Yes, this season’s chassis – F1.09 – has failed to deliver in terms of lap times and championship points, but to pull the plug after one disastrous season even after several years competing in the sport is distasteful.
Don’t forget the team actually won a race last year in Montreal where Robert Kubica took his and BMW Sauber’s maiden victory in the Canadian Grand Prix.
By quitting the sport, it brings an end to a decade of continuous involvement since returning to the support as an engine supplier to Williams in 2000.
BMW left Williams to take over Sauber in 2006 to form its own outfit and the company has poured significant investment into the sport, especially on its computational fluid dynamics supercomputer Albert II.
At least BMW’s involvement in motor racing extends far beyond Formula 1, as it seems the Formula BMW junior single-seater championship will continue, along with the World Touring Car Championship.
Though it remains to be seen whether the board members at Munich will also mean pulling out the other racing series in a further bid to cut costs.
As for the current Formula One drivers, Robert Kubica and Nick Heidfeld respectively, these two have enough to offer in terms of experience. It will be fascinating whether Kubica or Heidfeld can get drives at other teams next season.
But the most worrying aspect of BMW quitting the sport is whether others will follow. Toyota and Renault are the next two teams rumoured to leave, but for the sake of the sport, I hope the two manufacturers stay.
And so ends BMW’s ten-year commitment in Formula One, first as an engine supplier and then as a full-fledge outfit. Who will take over the empty grid spot in 2010? Well, the Concorde Agreement has yet to be signed but the deadline to enter new teams has already been passed, so the idea of seeing the likes of Prodrive, Lola and N. Technology won’t happen.
More this news story can be read via The Guardian and The Daily Telegraph – see below for the full article:
BMW Sauber confirmed today that they are to withdraw from Formula One at the end of the 2009 season.
The announcement, made at the team’s headquarters in Munich, means BMW is the second major manufacturer to pull out of the sport in the space of eight months following Honda’s withdrawal in December.
The news comes ahead of the imminent signing this week of a new Concorde Agreement, the commercial document that governs Formula One and binds the teams to the sport for the length of the contract. BMW had been a pivotal player in those negotiations.
Dr Norbert Reithofer, chairman of the BMW management board, said the decision was “difficult” but “a resolute step in view of our company’s strategic realignment”.
“Premium will be increasingly defined in terms of sustainability and environmental compatibility,” said Reithofer. “This is an area in which we want to remain in the lead. We are continually reviewing all projects and initiatives to check them for future viability and sustainability. Our Formula One campaign is thus less a key promoter for us.”
Bernie Ecclestone, however, said that he believes BMW’s failure to challenge for the world title is behind their withdrawal.
“Recently when I spoke to Mario Theissen, the team manager, he said they had three years to win the world championship,” the Formula One commercial rights holder told the BBC. “That’s what he wanted to do and he was quite confident they would. But it appears it’s not quite been like that, so perhaps that’s why they’ve [chosen] to stop.”
The BMW drivers Nick Heidfeld and Robert Kubica have amassed only eight points between them this season to leave their team eighth in the constructors’ championship.
“If I was looking after their politics, if you want to say that, I’d hardly say that we decided to leave because of our performance over the last three years,” he added. “When you consider how much money they’ve spent and the results they’ve got, it’s probably not such a good investment.
“They were quite sure that they were going to win the championship within three years, and I was hoping they would.”
BMW had made rapid strides in F1 since taking over Sauber ahead of the 2006 season, scoring two podium finishes and claiming fifth in the constructors’ championship that year. But this season the team have been a major disappointment after failing to get to grips with the introduction of new regulations, taking just eight points from 10 races so far.
BMW’s issues have been compounded by the fact that despite Ferrari and McLaren-Mercedes making similarly slow starts, those two teams are back up to speed, leaving the German marque at the back of the grid.
Dr Klaus Draeger, member of the management board responsible for development, confirmed the recent results had played a part in the decision.
“It only took us three years to establish ourselves as a top team in Formula One,” said Draeger. “Unfortunately, we were unable to meet expectations. Nevertheless, our 10 years of Formula One experience have had a major impact on our development engineers.
“We have racing to thank for numerous technological innovations, as well as the competitive spirit that drives us to develop mass-produced cars.”
It is certain redundancies will follow, both in Munich and at their other plant in Hinwil, Switzerland.
Draeger added: “We will develop and assess various scenarios and do our best to find a solution for the employees in Hinwil and the staff members involved in the Formula One project in Munich. We are aware of the responsibility we shoulder and will inform the staff as soon as we can make a clear statement.”
An emergency press conference was called at the German car manufacturers’ headquarters this morning to make the announcement. BMW are the second major manufacturer to pull out of the sport in the space of eight months following Honda’s withdrawal in December.
“Of course, this was a difficult decision for us, but it’s a resolute step in view of our company’s strategic realignment,” said Dr Norbert Reithofer, chairman of the Board of Management of BMW.
“Premium will be increasingly defined in terms of sustainability and environmental compatibility. This is an area in which we want to remain in the lead.
“We are continually reviewing all projects and initiatives to check them for future viability and sustainability.
“Our Formula One campaign is thus less a key promoter for us.”
The fear is that BMW’s departure could prompt other manufacturers, specifically Toyota but perhaps Renault as well, into making similar decisions.
It is a situation that the FIA, world motorsport’s governing body, feared from the moment Japanese car giant Honda dropped its bombshell last December that it was leaving F1 as a result of the global financial downturn.
With the FIA banging the cost-cutting drum, Honda’s exit prompted the Formula One Teams’ Association to agree to slash budgets by about a third for this season – an estimated $1 billion in total.
However, FIA president Max Mosley’s attempts to pass a £40 million budget cap in May met with fierce resistance from FOTA who threatened to form their own breakaway series.
BMW’s exit is a crushing blow for the sport and for Bernie Ecclestone, the chief executive of Formula One Management.
It had been thought that all five remaining manufacturers would pledge themselves to the sport until 2012 by signing a new Concorde Agreement with CVC Capital Partners, the commercial rights holder, and the FIA, the sport’s governing body.
The FIA announced only last week that the latest draft of the document was being assessed by their World Motor Sport Council and “should be ready for signature” by the end of this week, subject to confirmation that a satisfactory inter-team cost-reduction agreement is in place.
The German car manufacturer has suffered a frustrating season on the track, having started with high hopes of challenging for the title.
Last year Polish driver Robert Kubica was leading the championship at the halfway stage before the team dropped away in the latter stages. This time around Kubica has just two points to his name after 10 races, with German team mate Nick Heidfeld not much better off with six points.
The team are also known to be upset by the failure of their KERS energy-recovery system, which they had campaigned tirelessly for last year.
It would, however, leave their drivers at a loose end. Kubica said recently that he was considering a future in rally driving although, with Ferrari needing someone to replace Felipe Massa, the highly rated Pole might be given a chance to impress at Maranello.
And how about the staff who are currently working for BMW, what will happen to them? Read the Autosport.com story for details:
The fate of the BMW Sauber staff at Hinwil in Switzerland has not yet been decided, following the shock announcement that its parent company is quitting the sport.
BMW only decided on Tuesday that it was to quit Formula 1, and it confirmed the news in a press conference in Munich on Wednesday morning.
That short timescale means that no decision has been made about whether the outfit will be shut down completely, or sold on to another company.
Dr. Klaus Draeger, member of the board who is responsible for development, said BMW would evaluate the situation carefully.
“Since we only made this decision yesterday, we cannot provide any more precise information,” he said. “We will develop and assess various scenarios and do our best to find a solution for the employees in Hinwil and the staff members involved in the Formula 1 project in Munich. We are aware of the responsibility we shoulder and will inform the staff as soon as we can make a clear statement.”
BMW is the second car manufacturer to pull out of F1 in less than 12 months, with Honda having announced last December that it was withdrawing from the sport.
Honda’s announcement led to months of uncertainty about the fate of its Brackley team, before it was sold to Ross Brawn.
BMW returned to F1 in 2000 with the Williams team, scoring ten victories as an engine supplier before becoming a team owner with BMW Sauber from 2006.
It made steady progress, finishing second in the 2007 constructors’ championship following McLaren’s exclusion and won its maiden race in Canada in 2008.
BMW’s 2009 challenger has been a disappointment however, and its struggle will likely have played a bit part in the decision to quit.
The FIA says it is not surprised by BMW’s decision to quit Formula 1 – as it blamed team principals for resisting cost-cutting measures that would have prevented such walk outs.
BMW’s decision to turn its back on F1 at the end of 2009 was announced on Wednesday morning, and it is feared that another manufacturer could soon follow suit and leave the sport.
The FIA has said that the state of affairs is proof that cost-cutting measures were vital – as it hinted at some frustration that its effort to change the sport’s finances was met by opposition.
“The FIA regrets the announcement of BMW’s intended withdrawal from Formula 1 but is not surprised by it,” said an FIA statement.
“It has been clear for some time that motor sport cannot ignore the world economic crisis. Car manufacturers cannot be expected to continue to pour large sums of money into Formula 1 when their survival depends on redundancies, plant closures and the support of the taxpayer.
“This is why the FIA prepared regulations to reduce costs drastically. These measures were needed to alleviate the pressure on manufacturers following Honda’s withdrawal but also to make it possible for new teams to enter.
“Had these regulations not been so strongly opposed by a number of team principals, the withdrawal of BMW and further such announcements in the future might have been avoided.”
The FIA said it hoped that cost-cutting rules that have been agreed will be enough to prevent more walk outs in the future.
“As a result of a sustained cost-cutting campaign by the FIA, new measures are in the process of being agreed which should make it easier for new teams to enter and enable existing ones to participate on much reduced budgets,” the statement added.
The Formula One Teams’ Association (FOTA) has vowed to do all it can to help secure a future for the BMW Sauber team, following its parent company’s decision to quit the sport.
Just as FOTA moved to help keep Brawn GP on the grid after Honda withdrew from F1 last December, the organisation’s secretary general Simone Perillo said on Wednesday that the teams’ body had held immediate talks to confirm its support for the Hinwil-based operation.
“FOTA Teams have immediately consulted each other and are ready to assure all the necessary support to the Swiss-based team, whose membership in the association is confirmed, to continue its involvement in the F1 Sport,” said Perillo.
FOTA is poised to begin a detailed evaluation of what improvements can be made to the sport – and one option it is openly considering it for teams to run three cars in a bid to keep grid numbers high.
“It is worth mentioning that a professional work has already begun within FOTA, aimed at increasing the involvement of the fans and at improving the F1 show,” continued Perillo.
“Among those initiatives, one that could be interesting is the introduction of a third car on the grid. FOTA will seek the opinions of all the most relevant stakeholders in order to exchange ideas and define proposals for the future of Formula 1.
“FOTA Teams now wish to have the necessary certainty and stability within Formula 1 in order to focus on those fundamental priorities for the future.”
Source: Autosport.com
Check out this detailed analysis on BMW from Autosport. Since returning to Formula One as an engine supplier in 2000, BMW has regularly flirted with success without quite managing to fulfil its title-winning potential.
http://www.autosport.com/news/report.php/id/77408
As for Nick Heldfeld, the German was taken by surprise following BMW’s withdrawal from Formula One. Story taken from Autosport.com:
Nick Heidfeld has revealed that he had no prior knowledge about BMW’s decision to withdraw from Formula 1 at the end of the year, following the company’s announcement on Wednesday.
The German, who has driven for the BMW Sauber team since its inception in 2006, and who drove for Williams when it was powered by BMW engines in the year prior to that, told his website that the news had come as a complete surprise to him.
“BMW’s decision no longer to compete in Formula 1 was totally unexpected,” he said. “I feel very sorry for the members of the team with whom it has been my privilege to work over the years.
“I would like to thank all of them for their tremendous support and for everything we have achieved together.”
The 32-year-old added that he was determined to continue racing in F1 and was negotiating with other teams.
“I’m not going to lose sight of my ambition to reach the top in Formula 1,” he said. “I’ll be doing my best to support the team and ensure that we get the best possible finish to the season.
“As far as my personal future is concerned, we’ll now be continuing discussions under these changed circumstances.”
Toyota has moved to deny speculation that it is poised to follow BMW out of Formula 1 at the end of 2009.
Amid widespread suggestions that BMW’s departure from the sport will be followed by another manufacturer imminently, rumours have revolved around Toyota.
This has been prompted by the fact that Toyota has not yet signed the Concorde Agreement that would tie it to F1, and the team’s F1 president John Howett is in Japan at the moment discussing strategy with the Japanese car manufacturer’s chiefs.
However, a spokesman for the Toyota Motor Corporation has dismissed any talk that Toyota is considering its future in F1, with its Concorde Agreement signature expected to be confirmed in the next few days.
“Through cost reduction we will continue our Formula 1 activities,” said the spokesman. “Our situation remains unchanged.”
Source: Autosport.com
Check out this fascinating article on F1 Fanatic on the many reasons why BMW are leaving Formula One:
http://www.f1fanatic.co.uk/2009/07/30/why-are-bmw-really-quitting-f1/
It seems the BMW team have been saved with the news that a new buyer has been found. Read the Autosport.com story for the full details:
BMW has announced that the Qadbak Investments company has agreed to purchase the Formula 1 team based in Hinwil.
The German company had revealed earlier this year that it will quit Formula 1 at the end of the season, and had been in talks with interested parties since then.
On Tuesday (September 15th), BMW said it had signed the contract to sell the team to Qadbak, a Swiss-based foundation which represents the interests of certain Middle East and European-based families.
“A strong investor has therefore been found for the Hinwil-based team,” BMW said in a statement.
“Qadbak’s interest in the team will be represented by Lionel Fischer, a Swiss national. BMW wishes Qadbak and the Sauber Team every success for the 2010 season and beyond.”
The sale of the team coincides with the FIA having announced the 13th entry for the 2010 championship went to the Lotus outfit, with BMW as a possible 14th entry in case a current team fails to race next year.
The FIA also said it would talk to the teams about the possibility of increasing the grid size to 28 cars to allow the Hinwil squad to race next year.
BMW Sauber has said it fully expects to be on the Formula 1 grid in Melbourne next year after finding a buyer for the team.
After missing out on the 13th 2010 slot to Lotus, BMW Sauber was offered an extra 14th team place by the FIA if it was successful in securing funding for its future.
After announcing that Swiss foundation Qadbak Investments Limited is to buy the team, BMW Sauber issued a statement confirming that it now expects the FIA to guarantee its place on the grid.
“We are pleased to confirm that the FIA has indicated that we may have a place in the 2010 Formula One World Championship,” said a BMW statement.
“The team expects to line up on the grid for the first race of the 2010 season.”