BREAKING: BMW announces withdrawal from Formula One at end of 2009
by Sam Abuelsamid on Jul 29th 2009 at 8:28AM 
BMW's Board of Management met this week and voted to to wind down its Formula One team at the end the of the 2009 series after just four seasons. According to a statement from BMW, the resources that had been expended on the company's F1 program will instead be re-directed to the "development of new drive technologies and projects in the field of sustainability." That means we will likely be seeing a significant ramp-up of work on electrification and efforts like Project I which first spawned the Mini E.
After returning to F1 as an engine supplier first to BMW in 2000 and later to Sauber, BMW took over the Sauber team prior to the 2006 season. Since then, BMW Sauber has only managed a single win and has struggled in 2009 under the series' revamped technical rules. BMW has not yet given any indication that it is open to selling the team and its assets the way Honda did last year to Ross Brawn.
The automaker's other motorsports programs will continue in 2010 and beyond with efforts in touring cars, the American Le Mans Series and Formula BMW. A press release and statement from CEO Dr. Norbert Reithofer are after the jump.
[Source: BMW | Image: Mark Thompson/Getty]
BMW to Exit Formula One at End of 2009 Season.
* 29.07.2009
* Press Release
Munich.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.
Statement by Norbert Reithofer Press Conference on the Realignment of BMW AG's Motor Sports Activities
* 29.07.2009
* Speech
Ladies and Gentlemen,
Thank you for joining us at such short notice here today.
Yesterday, the Board of Management made the following decision:
• We will realign our motor sports activities.
• The BMW Group will end its Formula One activities at the end of the 2009 season.
• We will remain active in the field of motor sports, focusing on close-to-production motor sports and promoting young drivers.
• We will pool our expertise and financial resources in the fields of sustainability and new technology development.
In 2007, we set the foundation for a strategic realignment of the BMW Group by adopting our Strategy Number ONE. Now we are rolling out this strategy in all areas within the BMW Group.
In addition, we initiated an internal change process that goes hand in hand with a new mindset throughout our workforce.
All measures and activities aim for the same goal, namely to ensure our company's future viability.
This is the focus to which we are dedicating our resources and capacities, while constantly adjusting them to new requirements.
The BMW Group is the world's leading premium car company in the automotive industry. We believe that this demands accountability
• with respect to our products,
• with respect to who we are as a company,
• with respect to our social commitment,
• and with respect to the premium business model.
We are of the opinion that the premium segment has to remain a positive role model within our society.
By launching our Efficient Dynamics technology program, we began early on to reduce our vehicles' fuel consumption and emissions significantly. Today, our BMW and MINI fleet in Germany consumes a mere 5.9 liters of fuel on average. This is below the average of Germany's largest-volume brand.
Sportiness and dynamics remain the key attributes of all BMW models, albeit paired with responsibility.
At the IAA, we will showcase a concept car as a"CO2 champion" to demonstrate a whole new dimension of driving pleasure with regards to efficiency with performance.
In line with our Strategy Number ONE, we are continually reviewing all projects and initiatives to check them for future viability and sustainability.
We made this clear with the initial announcement of our Strategy Number ONE. And, naturally, this also includes motor sports.
And I have always been clear about my position on making tough decisions that will help ensure the BMW Group's success over the long run.
As our company places stronger focus on sustainability initiatives, our participation in Formula One becomes less a key promoter of this engagement.
It goes without saying that this step was very difficult for us-as well as for me personally.
On behalf of the entire Board of Management, I would like to express our immense gratitude to Mario Theissen for his commitment and successes.
Everyone knows that the BMW brand embodies sportiness with sheer driving pleasure. Sportiness and fair competition are firmly encoded in our DNA.
This is why we will remain loyal to motor sports. But we will do this in series that enable us to transfer technology more directly and to realize additional synergies, while strengthening our brand values. This is in our customers' best interest.
As a company, we are making a paradigm shift based on our Strategy Number ONE. We are setting new priorities in an ever-changing environment.
The focus of the BMW Group will be towards sustainable development over the next years and decades to come.
Our vision remains clear: to be the leading provider of premium products and premium services for individual mobility.
We will pursue this vision with resolve.
Thank you for your attention.
Reader Comments (Page 1 of 3)
schhim 8:34AM (7/29/2009)
Woe is me! BMW's pulling out of F1! They're going to start building FWD cars because they no longer have racing pedigree!!!
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Mike7 8:36AM (7/29/2009)
Forget about this?
http://www.netcarshow.com/bmw/2009-m3_race_version/1280x960/wallpaper_01.htm
schhim 8:38AM (7/29/2009)
maybe the sarcasm was laid on too thick...
vf34wrx 8:39AM (7/29/2009)
you mean as opposed to Honda's business model "we build race car engines, participate in racing programs, but none of that has anything to do with our bland FWD, wannabe AWD pretend-luxo cars that are under powered and have a peaky engine with no low to mid range torque or handling capabilities beyond beating a Toyota Camry"?
Mike7 8:39AM (7/29/2009)
"maybe the sarcasm was laid on too thick..."
Possibly
Noidor 8:58AM (7/29/2009)
See the thing is many people are claiming this to be a decision based on lack of results, but everyone knows that rules were totally flipped upside down this year, heck even Ferrari and Mclaren have struggled immensely (excluding LH's win past weekend).
My thought is that the exit was due to the myriad of political entangling which went on every month. I think BMW were searching for rule stability and some sort of a concrete way of going forward, but obviously that didn't happen. They also realized that with lower fanbase, high ticket-prices, inconsistent enforcement of rules, no stability for future, lower sponsor support; no choice was left but to exit F1.
I think damage done to F1 has been irreparable, at least in short to medium-term.
schhim 5:06PM (7/29/2009)
BMW's withdrawal from F1 speaks more to F1's slipping relevancy to the business success of a car company. Last I checked, Renault doesn't have any RWD cars but that doesn't stop them from succeeding in F1.
Level 5:34PM (7/29/2009)
Well BMW needs to focus more on its engines, they are cutting corners turbo charging everything in their line up...BMW use to be a good motor company now they are just becoming the Subaru's of Germany...Their v10 no mater how great was still weak for it's size...Theres alot more powerful V8's in the market...They cut corners with their twin turbo V6 to achieve 300hp while the competition has been able to achieve 300hp N/A...
naggs 3:48AM (7/30/2009)
Level
that comment is almost total fail
Thomas Gilling 8:35AM (7/29/2009)
BMW made it's self from racing, taking the sport out of BMW is like taking the history out of Mercedes-Benz. Can't they do both? Develop new green technologies and race?
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Bird 9:01AM (7/29/2009)
"The automaker's other motorsports programs will continue in 2010 and beyond with efforts in touring cars, the American Le Mans Series and Formula BMW."
Ben Roethig 9:24AM (7/29/2009)
Wise decision. Modern F1 is a mega money pit that serves no purpose. If were in 60-100 million range, it might be worth it, but with little to no rules you have to spend a quarter to half a billion a year to be competitive.
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Hyundai_Fanboy 8:50AM (7/29/2009)
they were on the top five last year and doing pretty great and suddenly became $hit backfielder....Not as bad as HONDUH thou, Honduh was $hit year after year.
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652059 8:57AM (7/29/2009)
So there goes the last remaining interest I had in Formula 1. With all the series mis-management (Bernie, Max, et al) and now my brand team withdrawing, I have little to no reason to watch.
BMW Corporate has lost its focus. The new M3 is a fat pig, the M brand is diluted with 7-series and X-trucks, and not a single small, light, fast car on offer. Even the 1-series is overweight and underdeveloped, never mind that it costs 50% more than it should.
I'll stick with my E30 and E36 cars, maybe even adding an E46 M3 to the fleet, but nothing they're making today makes me aspire to visit the dealership, or even look forward to owning one second hand in a couple of years.
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ScuderiaFerrariF1 12:27PM (7/29/2009)
100% agree....except add in the E34 M5 too
F1 is still appealing to me, just not as appealing as last year or the year before.
Throwback 8:57AM (7/29/2009)
It's hard to justify spending huge sums on F1 when there is no direct pay back. BMW does not need F1 to sell cars.
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hyundaifans.com 8:59AM (7/29/2009)
No big surprise. A company well known for its sports car should not be struggling as much as BMW was. A few times they were "almost there" but for the most part, their performance was always below what was expected.
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vik 12:42PM (7/29/2009)
I would much rather they put their efforts into the sports cars series (touring, le mans, etc) than be in a series with constant rule changes. Lets face it, they're also not performing up to expectations and given the cost of F1, their money might be better spent elsewhere. It's pretty hilarious when the subject is BMW to hear Honda injected into the equation. Honda are doing what they need to do to survive and in the car business, it's all about the bottom line. For those who have forgotten, Honda (and BMW) has built some of the best F1 engines in the history of the sport..........as well as the other company people like to laugh at, Ford.
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Ian 2:15PM (7/29/2009)
Ford have built the best engines?????
I think you will find the engines with the Ford badges were designed by Cosworth a little engineering company that Ford eventually bought and then sold. Currently that company is in the hands of Gerald Forsythe and Kevin Kalkhoven.
David Ederer 9:07AM (7/29/2009)
F1 was once a great series, but as was mentioned, the games played by Bernie and Max, no F1 in Montreal or the US, inconsistent rules and the high costs, think they can get the same kind of technological innovations from other series with out the bad press.
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