Monday, Nov. 16, 2009

Mercedes acquires F1 team Brawn GP

Mercedes-Benz announced on Monday it has taken over Brawn GP and will compete in Formula One in 2010 as the team known as Mercedes GP. The German car maker also will end its shareholding with McLaren.

Mercedes' parent company, Daimler AG, along with Aabar Investments PJSC, will take over 75.1 percent of Brawn GP, which captured the constructors' title and drivers' championship with Jenson Button in the team's maiden F1 season. The remaining 24.9 percent will remain with current stakeholders Ross Brawn and Nick Fry. Brawn will remain as team principal.

"Brawn GP has been through an incredible journey over the last 12 months," Brawn said. "From fighting for our survival to forging a strong relationship with Mercedes-Benz High Performance Engines, winning both the constructors' and drivers' world championships and now accepting Daimler and Aabar's offer to buy our team, which will secure its future."

Brawn formed his team shortly after previous owner Honda announced its withdrawal from F1 competition less than one year ago.

Mercedes will continue to supply long-term partners McLaren with engines until at least 2015, but the company's 40 percent shareholding in the team will be reacquired by McLaren over the next two years.

According to Mercedes, the decision to step up their level of F1 involvement was prompted by recent agreements on ways of cutting expenditure in the sport and by the higher levels of income afforded to teams following the signing of the new Concorde Agreement earlier this year.

"This is a win-win situation for both McLaren and Daimler," Ron Dennis, founding shareholder of the McLaren Group, said in a statement. "I've often stated that it's my belief that, in order to survive and thrive in 21st- century Formula One, a team must become much more than merely a team.

"That being the case, in order to develop and sustain the revenue streams required to compete and win grand prix and world championships, companies that run Formula One teams must broaden the scope of their commercial activities."

Lewis Hamilton, the 2008 F1 world champion, and Heikki Kovalainen have driven for McLaren the past two seasons.

Mercedes has yet to announce its driver lineup for next season. Rubens Barrichello has already left Brawn for Williams, while speculation continues that Button will move over to McLaren to team with Hamilton. Kovalainen's future in the sport is uncertain.