Thaindian News

By Gerd Muenster
Munich, July 29 (DPA) BMW is to pull out of Formula One at the end of the 2009 season, chairman Norbert Reithofer confirmed Wednesday at a press conference at the carmaker’s headquarters here.

The reasons for the decision were neither the high costs nor the disappointing results, but a company-internal strategy change. The German carmaker is believed to be quitting only Formula One, and will remain active in other motorsports.

“The board decided yesterday that we would change our involvement in motorsport. The BMW group will end its involvement with Formula One at the end of the 2009 season,” said Reithofer in the company of BMW-Sauber team principal Mario Theissen.

“Obviously, this decision was a difficult one for us.”

BMW took over the Swiss Sauber racing team in 2005 and debuted in the Formula One a year later. In 63 races to date, BMW-Sauber so far has celebrated only one victory, by Polish driver Robert Kubica in Montreal in June.

“In the background of a sustained restructuring of the entire company, our involvement with Formula One doesn’t coincide with the companies main objectives,” said Theissen.

“From the point of view of the company, I can understand this decision.”

Motorsport’s ruling body, the FIA, blamed the global recession for the move.

“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 One when their survival depends on redundancies, plant closures and the support of the taxpayer,” said the organization in a statement.

According to the Bild Zeitung newspaper, Japanese carmaker Toyota is also considering pulling out of the sport while Honda withdrew at the end of last year.

FIA has argued that it is addressing the problems and pointed to the new cost-cutting measures introduced this season as well as the Concorde Agreement set to be signed later this week.

“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,” it said.

“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.”

Mercedes, meanwhile, said BMW’s decision would have “no effect” on its future commitment to F1.

“We regret the exit of BMW from Formula One,” a spokesperson said.

It remains unclear how the BMW-Sauber operation in Munich and Switzerland’s Hinwil will be run down and how many of the approximate 700 employees will lose their jobs.

“As we only made this decision yesterday, we are not in a position to give any concrete details,” said BMW’s head of development Klaus Draeger.

“We will look at and evaluate several different scenarios in an attempt to find a solution for those employees involved in Hinwil and with the Formula One project.”

Despite the FIA’s claims to the contrary, BMW’s decision is certain to have been influenced by the new Concorde Agreement which is due to be signed later this week and will regulate how F1 is run until 2012.

However, the team’s performances on the track are also certain to have been a factor.

BMW lies a lowly eighth in the constructors’ standings after 10 of 17 races while drivers Nick Heidfeld and Kubica sit 13th and 15th, respectively, in the drivers’ championship table.

“Unfortunately, we have not been able to meet our expectations this season,” admitted Draeger.

In 2007, BMW finished second in the constructors’ championship although this position was helped by the disqualification of McLaren-Mercedes over a spying affair. Before launching its own racing team, BMW developed engines for the Williams team.