Tag: ron dennis

End of an Era for McLaren and Ron Dennis

Former McLaren Boss Ron Dennis has, after 37-years, ended all ties to McLaren after selling his shares to the McLaren Group.

In addition to the sale of Dennis’ shares he vacates his position as Chairman of McLaren.

Dennis’ stake at the company was reportedly valued at £275-million.

McLaren Group has managed to secure long-term finance to acquire these shares and a bit more to put back into the business to stimulate growth.

Dennis, at the helm of McLaren, lead the team to 17 Formula 1 World Championships and 158 Grands Prix wins over his 37-year tenure. He’s also worked with legendary drivers like Ayrton Senna, Alain Prost, and Mika Hakkinen. He’s also credited for signing on Lewis Hamilton in 2007 in which Hamilton almost won the World Championship in his rookie year.

In December 1980 Dennis merged his company Project 4 with Team McLaren to form McLaren International. Since then all McLaren F1 cars carried the “MP4” name.

“I am very pleased to have reached agreement with my fellow McLaren shareholders. It represents a fitting end to my time at McLaren, and will enable me to focus on my other interests,” said Dennis.

READ: Ron Dennis Ousted from McLaren

“I have always said that my 37 years at Woking should be considered as a chapter in the McLaren book, and I wish McLaren every success as it takes the story forward.

Dennis said that he will continue to consult for various companies and the UK Government’s Ministry of Defense Innovation Advisory Panel.

“Last but far from least, I wish McLaren well, and I send my greatest thanks and best wishes to my colleagues in all corners of its business, and at every level of seniority,” said Dennis.

“Truly, they are the best of the best. And, well funded to succeed and grow, and led by an ambitious management team, McLaren is ideally poised to build on the successes that I am so proud to have contributed to during my time leading such a great British group of companies.”

Future Plans for McLaren Companies

Going forward, Mclaren Automotive and McLaren Technology Group will be brought together under one structure called McLaren Group.

The restructuring of the company will make the Bahraini Sovereign Wealth Fund Mumtalakat and the TAG Group McLaren Group’s long-term majority shareholders.

Shaikh Mohammed bin Essa Al Khalifa will be McLaren Group’s Executive Chairman with Mansour Ojjeh the Executive Committee Principal.

Mike Flewitt will remain as CEO of McLaren Automotive and Jonathan Neale with remain the CEO of McLaren Technology Group with Zak Brown as Group Executive Director.

Mansour Ojjeh believes that the restructuring is the next right step to unify the strategies and brands to create a stronger centre of Luxury Automotive, Racing and Technological excellence now that both businesses have reached world-class scale and success.

June 30, 2017
Ron Dennis Forced Out of McLaren

Ron Dennis has been forced out of the McLaren after a long, tense boardroom battle between his long time business partner Mansour Ojjeh and Bahraini sovereign wealth fund Mumtalakat.

Dennis owns 25% of McLaren Group and Ojjeh another 25%. Mumtalakat owns the remaining 50%. Behind the scenes a tense battle has been raging between Dennis, Ojjeh and Mumtalakat with Dennis trying to raise money to buy out Ojjeh to increase his stake in the business.

Last week, a £1.65 Billion bid from a Chinese consortium was rejected by Ojjeh and Multalakat after which they launched their own counter against Dennis to remove him as CEO and Chairman of McLaren Technology Group.

Dennis tried to bring forward a court order to prevent this but the courts did not grant the order. He will now be placed on gardening leave till his contract expires at the end of the year.

Dennis will remain involved in McLaren as he will still be on the board of McLaren Technology Group and McLaren Automotive Ltd but he will no longer be involved in the day-to-day running of the operation.

“l 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,” said Dennis in a statement.

“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 One world championships and grown into an £850 million a year business.

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

“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 3,500 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.

On his future plans, Dennis says he will launch a technology investment fun once his contract at McLaren expires at the end of the year.

“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. ”

In a separate statement from McLaren, they made it clear that while Dennis will be on gardening leave he will remain as CEO although he has relinquished his role as CEO. McLaren also say that they are currently seeking a new CEO. Management of the organisation, in the interim, will consist of an Executive Committee comprising the Group’s majority shareholders, collaboration with the Board of Directors and the senior management team.

“As of this afternoon Ron Dennis no longer holds the position of Chief Executive Officer of McLaren Technology Group (or its subsidiaries). However, he remains a shareholder and a director of McLaren Technology Group,” read the statement from McLaren.

“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 will always be one of the true greats of the sport,” the statement continued.

“McLaren Technology Group is now in the process of seeking a new Chief Executive Officer. 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, in close collaboration with the Board of Directors and the 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.”

November 16, 2016
Ron Dennis to be ousted in £1.6bn Chinese takeover bid for McLaren?

According to Sky News, Ron Dennis is said to have presented a £1.65bn for the McLaren Formula One team. Reports state that a consortium of Chinese investors has tabled a £1.65bn takeover bid for McLaren, who own the McLaren Formula One (F1) team.

Sky News reported today that Dennis presented the offer from a group of unidentified Chinese investors ‎last week. This move has allegedly prompted his fellow shareholders to launch a plot to oust him as chief executive.

Sky News sources said Dennis‎ was in the High Court on Thursday and Friday in an attempt to secure an injunction against a move to place him on gardening leave until his contract expires in mid-January. According to the reports, his move has been rejected. This has apparently led to an emergency board meeting of McLaren being convened thsi evening. The meeting is expected to lead to his immediate suspension as chief executive.

There’s more though … according to the Sky News reports, tensions have been mounting between Dennis, who owns 25% of McLaren Technology Group, and Mansour Ojjeh, a long-term business partner, who also holds 25%. Sky reports that both Mr Ojjeh and Mumtalakat, the Bahraini sovereign wealth fund, which owns the remaining 50%, believe that the Chinese bid is undesirable and want Ron to step down.

Neither Ron Dennis nor McLaren have commented on the matter yet and while all information is not yet confirmed, we will do out utmost to keep you updated as news updates are released.

November 11, 2016
F1 2016: Mid-season Review

Formula 1 is two weeks into its mid-season break, which provides the perfect occasion to reflect on the first half of 2016.

Mercedes brilliant but not without bruises

The reigning champions rocketed out of the starting gate in 2016 and haven’t faced a consistently noteworthy challenge from anyone. Nico Rosberg obliterated the competition with four victories in a row and built a commanding lead over teammate Lewis Hamilton in the driver’s standings.

It appeared that Rosberg had finally mastered his mental demons and would make a serious bid for championship glory. But Lewis Hamilton was calm the face of Rosberg’s domination and sometimes even a bit detached from his points deficit. Nearly a decade and several clutch moments in the sport provided Hamilton with an abundance of experience and the knowledge that the championship was far from out of reach.

He not only closed the gap but also took over the lead on the driver’s table going into the break. The nagging question about Rosberg’s psychological toughness has roared back to life especially after that controversial collision with Hamilton in Spain and Austria.

While Rosberg and Hamilton rub carbon fibre instead of wheels Toto Wolff and co has threatened to enforce team-orders. But this is unlikely to happen, as neither driver will accept it. The championship is far from over but it’s clear that right now Hamilton has the edge on form and crucially in mentality.

Red Bull storm back into contention

The team started the season with Daniel Ricciardo and Daniil Kvyat in the cockpit of a car seriously lacking in grunt. Two vital changes turned the season around for the Austrian team. First, Kvyat was demoted to Toro Rosso in favour of Max Verstappen. The young Dutchmen immediately repaid the faith but winning the Spanish grand prix.

The second big change came in the form of a power unit upgrade from Renault. It not only catapulted Red Bull past Ferrari on pace but summarily halved the gap to Mercedes. Yes, there is still work to be done for Red Bull to be serious competition for Mercedes but the manner in which they’ve recovered their 2016 season is an impressive feat.

Ferrari stutter

In pre-season testing the Italian team looked set to challenge for victories and perhaps even a championship title if thing well, it didn’t. In Australia the wrong strategy call kept Sebastian Vettel from victory. Several dubious and costly strategy calls would follow throughout the first half of the season.

With that several gearbox penalties dogged particularly Vettel as he started race after the race down the grid. Team principal Maurizio Arrivabene finally admitted that their aggressive approach might have cost them points on reliability.

But the biggest blow came with the departure of chief technical director James Alison. Whatever the reason for Alison leaving the team it’s never a good sign when a senior member leaves a team midway through a season. Rumours are abounding that Ferrari are trying to bring Paddy Lowe and James Key into the stable. However, while both these men as exceptional at their respective jobs bringing them in at this point is unlikely to have a significant impact.

Ferrari is flailing in a manner that is unbecoming to its history and the only reason why it’s not being called catastrophic is because of their two drivers who somehow wring results out of their car.

McLaren moving forward

Honda has slowly but surely started to claw its way up the grid. Both Fernando Alonso and Jenson Button making regular appearance in the top 10 of qualifying and scoring the odd handful of points.

Though it’s still not where either of these champions want to be the Japanese manufacturer is doing just enough to keep Alonso and Button satisfied and believing that 2017 may be their year.

Haas’ good start fades

The American Haas team started the F1 season in spectacular fashion with Romain Grosjean. Several solid point scoring races and brilliant strategy calls belied the fact that this was a new team in Formula 1.

However, as the season progressed so the good times were consigned to the past. As other mid-field teams like Force India began to move forward and evolve their cars Haas seemed to stumble. Gone were the regular points scores to be replaced by a confused and frustrated Frenchman over the radio.

The good news for Haas is that Esteban Gutierrez’ performances have improved from the start of the season. There also isn’t an impression of negativity from the pitwall or the team boss. They are well aware that trying to hack it as a new team in F1 is a difficult prospect. They’re keeping their eye firmly on the ball and that’s what matters.

Force India resurgence

The season started rather mundanely for Nico Hulkenberg and Sergio Perez. But a genuine improvement has allowed the team to close the gap to Williams in the constructor’s championship.

While Sergio Perez has scored two podiums Hulkenberg has none. Some would be surprised at this stat as Hulkenberg is so highly regarded in the paddock. If the team can keep the car competitive in the mid-field the fights between its two drivers should develop into one worth keeping an eye on.

The F1 season returns 26 August with the Belgium grand prix.

August 15, 2016
Ron Dennis says Alonso has matured enormously

McLaren boss Ron Dennis has praised Fernando Alonso’s maturity in the wake of McLaren’s rueful F1 2015 campaign, in which the team could manage only only ninth place in the Constructors’ Championship standings.

Dennis and Alonso had a famously hostile relationship in 2007 but managed to iron out their differences to reunite for the 2015 campaign. Honda also made a return as McLaren’s engine supplier and have failed miserably at building a competitive power unit.

Alonso only managed to score 11 points this past season but Ron Dennis has come out with nothing but praise for the Spanish driver’s mature approach throughout the season.

“Fernando is as hard-working as he is talented, be in no doubt of that,” he told the official F1 website.

“He’s matured enormously since he last drove for us, eight years ago, and he’s now one of the most complete drivers I’ve ever had the privilege of working with.

“He has what I often refer to as the four e’s that all racing drivers should aspire to cultivate: energy, enthusiasm, expertise and experience.”

Dennis also reiterated the fact that Alonso will remain with McLaren until at least the end of the 2017 F1 season.

“Fernando’s contract is of three years’ duration – no performance clauses, no nothing,” he said.

“He always knew that 2015 would be a learning year. He knows equally well that, together with Honda, we’ll make big improvements. So he joined us with open eyes.

“Together with the expertise and experience he’s cultivated over the past 15 years spent racing in Formula One, he still bristles with energy and enthusiasm.

“He’s had better years than 2015, obviously; but he knows that great years lie ahead of him, with McLaren-Honda.”

December 17, 2015
Video: Ron Dennis Talks About Alonso, Honda and Button

Watch this interview of Ron Dennis talking about Fernando Alonso’s radio outbursts at the Japanese Grand Prix, developments at McLaren Honda and how he inadvertently confirms Jenson Button for the 2016 season

September 27, 2015
Button hints at F1 exit, Suzuka announcement expected – “the joy is gone”

Amidst increased swirling speculation regarding his Formula One career, Jenson Button has admitted that the “joy” of competing in F1 is no longer there and has hinted at exiting the sport.

The British driver has always said that the moment he no longer enjoys being behind the wheel of a Formula One car, he would cal it a day. He also insinuated that he would like to make an announcement at this coming weekend’s Japanese Grand Prix – which he considers a second home race.

Although McLaren holds the option on Button for the 2016 season and holds the final say over whether he will stay, the team’s financial situation and being keen on bringing his salary down will most likely force them to rethink their future plans. Button will not be keen to stay on at a lower salary with the struggling McLaren-Honda outfit and struggle at the back of the field.

“My head knows but my mouth and tongue doesn’t know. The joy of being in the car is only there if you’re fighting at the front and you feel as though you are achieving something,,” Button said to British media.

“If you’re fighting near the back, you’re driving an F1 car, but you can easily get joy driving something else. The joy you get is from competing. It’s about fighting at the front.

“It’s about the possibility of standing on top of the podium. That’s the joy of F1.”

Button indicated that while meetings will still need to take place with McLaren, his mind was made up and he’d like to make an announcement at Suzuka.

“I have made that decision, that’s the important thing,” he said. “It is always nice to make an announcement when you are at your home grand prix, but I don’t know what’s happening yet.

“There are a lot of meetings in Japan, Ron Dennis and Eric Boullier will be there. I’m sure there will be a lot of meetings at the headquarters.”

Should Button leave, the vacant seat will almost certainly belong to either reserve Kevin Magnussen, or test and development driver Stoffel Vandoorne, who is also the runaway leader in the 2015 GP campaign.

September 22, 2015
F1 2015: Spanish GP Preview – Formula 1 To Raise Its Game In Spain

The three week wait is over and the battle is ready to resume at this weekend’s Spanish GP. The question is which battle; will it be a battle between Mercedes teammates or will Ferrari ascend to true championship contenders?

The Spanish GP doesn’t necessarily have the definitive answer to these questions but it will be more than indicator for the rest of the season. The first European round of a Formula 1 season coincides with the first major upgrade package of the year. It’s the first point in the season where teams can potentially raise their game.

The Lotus F1 team is planning to up the ante by fitting a major upgrade package to its E23 while Ferrari team Principal Maurizio Arrivebene confirms that the Italian team will be arriving for the Spanish GP with its own bits and pieces. “I heard a lot of teams are coming with new things,” he said.”We are now preparing, as all the others are, some solutions for Barcelona. We are doing all of our development step-by-step but I think in Barcelona, we are going to finally take a good package.”

The three week gap will have helped French manufacturer Renault who has faced serious pressure to produce a better power unit. Since the Bahrain GP Red Bull team principal Christian Horner has made a stop at the Paris factory to urge Renault into speeding up their development plan. “For Barcelona we will be bringing a few bits and pieces, as will all the teams,” said Horner. “The significant thing for us is what specification of engine will we have in Barcelona, because it’s a bit earlier than Renault had in their plan for the next step.”

One of McLaren’s upgrades for the Spanish GP will include a new livery. Sadly, it’s rumoured to be rather dull shades of grey scheme, yes you read that correctly, as described by the team. The new livery is seen more as a move away from the Silver that characterised their latter partnership with Mercedes.

More significant is the team’s progress on track and Ron Dennis’, still steadfast, prediction that they will be winning races … soon. There is something however that has been troubling about the McLaren Honda partnership. The claims that 2015 is a “development year” are complete rubbish. There can be no such thing at the pinnacle of motorsport and it is embarrassing for a company of Honda’s pedigree to say so. What McLaren could have and should have done is hold off on bolting the Honda to the back of their car until 2016 while the Japanese company offered their “development” unit to a smaller team to iron out the kinks. It would have saved McLaren more than a few awkward teething problems.

McLaren has definitely made progress, taken huge steps even, since the opening round of the season. Where they were four seconds a lap off the ultimate pace in qualifying its Honda powered car is now less than two seconds off in quali trim. Here’s hoping that their upward trend continues in Barcelona.

Formula 1 has never been an easy sport topredict. It doesn’t solely depend on a driver’s form or ability but a piece of highly engineered, but fallible, machinery. Given this, Mercedes should, and does, start the weekend as favourites for the Spanish GP win. After all, they have the quickest car with the most in-form driver behind the wheel.

But with an aggressive strategy, a few new upgrades to play with, and higher temperatures Ferrari will be a good deal stronger than they have been at any point in the season. Given the volatility of the sport why not flirt with the forecast of a Ferrari victory?

The three week gap has made for a long wait but the first European round of the season at Spain’s circuit de Catalunya, and all it involves, automatically doubles the keenness to see Formula 1 back in action.

May 6, 2015
F1 2015: Malaysia GP Preview – Sepang First True Test

The first race of the season around Australia’s Albert Park circuit is a highly anticipated one. It’s the keenness to kick off a new F1 season which gives the streets of Melbourne that distinctive feeling of excitement. Its twenty-five points awarded to the winner are no less important than some of the more iconic races on the calendar but it can often disguise the teams’ true form and potential.

The second round of the season, around Malaysia’s Sepang International circuit, will highlight those who have taken a genuine step forward. Equally, the dazzlingly high-speed corners and tantalising long straights of Sepang is also going to emphasize any shortcomings a car might have.

Not much has changed at the sharp-end of the grid which Mercedes still, comfortably, dominate. But behind the silver arrows’ Williams and Ferrari appear to have traded places in the competitive order. Much of the Ferrari turnaround is down to the notorious power unit. Not long ago the Ferrari power unit more closely resembled a slow trotting donkey than its famed emblem of the prancing horse. But the Maranello team has produced a unit worthy of its heritage with a rumoured initial 80 horsepower gain since last year. It even has Williams raising a few eyebrows and admitting that the Ferrari unit may be “a bit quicker” than their Mercedes. This has made such a big change at Ferrari that it’s even spurred to normally tacit Kimi Raikkonen into a notably bullish state. “I believe in the race, we are not far from Mercedes. I’m sure we can be up there and fight at the front,” said Raikkonen.

At this stage no there has been no news on Valtteri Bottas’ readiness after suffering a partial muscle tear in the Oz quali session. If Bottas is not Finn he will undoubtedly be missed by Williams who will likely find themselves in a spicy fight for the podium with Ferrari. The lofty predictions for an all-out fight could not happen thanks to the temperamental weather system in the area.

Of the things that will happen this weekend Red Bull whinging and finding fault with Renault is a given. If their problems were evident Down Under then they will be glaring in Malaysia because Sepang is a power hungry circuit and Red Bull has nothing to feed it. So unhappy is Red Bull with the competitive order that Helmut Marko, Red Bull’s motorsport advisor, has threatened that Red Bull will quit the sport because of its current regulations. Team boss Christian Horner suggests that the FIA should look into an equalising engine performance to close up the field. It’s quite ironic, and perhaps even a bit hypocritical, given Red Bull plethora of victories during Vettel’s four consecutive championship seasons.

Let’s be clear Red Bull may have won four consecutive drivers and constructors championships but it doesn’t have the legacy of a Ferrari or Williams or McLaren so its threat to quit the sport doesn’t elicit the same fear. In the meantime, they’ll do their PR image a huge favour by taking it on the chin and focusing on the track. The form suggest that their fight will be for the lower points paying positions with Lotus and Toro Rosso and perhaps on a good day they may even challenge for a top five place.

Malaysia will provide a more realistic pecking order which will unquestionably be headed by Mercedes. It is ridiculous to suggest that the mighty Silver Arrows will face any form of pressure but it will be fascinating to see Sepang reveal Ferrari’s true progress.

March 25, 2015
Jenson Button Q&A – McLaren deal “worth the wait”

After what seemed like an eternity, McLaren yesterday finally announced their 2015 driver line up and confirmed that Jenson Button’s Formula One career will extend into a 16th season.

Button will partner Fernando Alonso for the 2015 season and while the delay in McLaren making the decision may have been agonising for Button, he insists that such a “special” opportunity was well worth the wait.

Button spoke to the official Formula One website about the upcoming year, driving for McLaren-Honda and partnering Alonso who many regard as the best driver in the current field.
Q: Can we get your feelings about lining up on the grid for 2015? It will be your 16th season in Formula One racing – what will that mean to you?
Jenson Button: First of all it is very special to be sat up here as a race driver for McLaren-Honda, and alongside this guy [Alonso]. As you know it has been quite a long few weeks, but sometimes the best things in life are worth waiting for. My 16th year in F1, and more importantly my sixth with McLaren. I am not one to shy away from new challenges in life and I think this is a really exciting challenge; it really does mean a lot to me. To race alongside this guy is a big challenge, but an exciting challenge. I am very much looking forward to it.

Q: With regards to those negotiations, you mentioned they gave you an opportunity to reflect on life outside of F1 racing. Now you are back, what was it that made you decide your future was still in F1, and with McLaren-Honda?
Jenson Button: I did reflect on life outside F1 and it is nowhere near as fun as life inside from what I have seen. My heart has always been here, to race for McLaren and with Honda. I have had some very special times racing with Honda, and some difficult times as well, but there is a lot we can do together and achieve together which means a lot to me. It is definitely a decision that was worth waiting for, and I am very happy to be here now.

Q: Fernando is your 11th F1 team mate, and the third world champion to drive alongside you after Jacques Villeneuve and Lewis Hamilton. You are a world champion yourself of course, so how useful will it be to have a driver of Fernando’s calibre alongside you next year? What will it be like having two world champions in the same team?
Jenson Button: For me in F1 it is so important having experience. To be racing alongside Fernando really does mean a lot: I think we all know what he has achieved in F1, not just his speed but how he works within a team, and how he is always there fighting. For me to have a team mate like that really does mean a lot. We have known each other since 2001, we were actually team mates at another team – I was racing and he was test driver, and then he took my seat for the next year (laughs). So we know each other pretty well. With 500 Grands Prix between us, I think we’re pretty experienced, and I think we will play a major role helping McLaren-Honda achieve great things in the future.

Q: How have you felt over these past months, waiting for the decision between you and Kevin [Magnussen]?
Jenson Button: I think I’ve been very open in how I’ve felt over the last few weeks and months, I don’t think there is any reason to comment further. The positive is where we are right now, and now we move on from there.

Q: Jenson, Ron Dennis said you provided some solutions in negotiations to enable [the deal]. You seem to have insisted on it being a multi-year deal. How important was that for you given the nature of this project? Would there have been any attraction in say one farewell season?
Jenson Button: I think we both agree that more than one year is a must. This is a new project, an exciting project. To be part of the legendary partnership between McLaren and Honda is not a one-year thing. I am very much looking forward to more than one year – I know we can’t really talk about contract details, but it is not something I am doing just to be around for one year for. I am here to compete, to fight for the world championship, and whether that is in 2015 or future years, I am hopefully here for a long time.

Photo Credit: McLaren-Honda

December 12, 2014