Mercedes to buy remaining 60% stake in McLaren
Discussion
Been in the wind for a while.
There are increasing reports in Germany that Mercedes-Benz is buying the remaining 60% of McLaren, with suggestions in the German press that the deal was signed at Hockenheim. According to the reports Ron Dennis met with DaimlerChrysler's chief financial officer Bodo Uebber and the company's head of research and development Dr. Thomas Weber to negotiate a deal at around $400m. This figure seems rather low but one must take into account the fact that McLaren has a debt burden resulting from the construction of its Technology Centre in Woking. The move, if confirmed, makes industrial sense if DaimlerChrysler is planning to expand its supercar production in Woking.
As to the structure of the team after any sale, it is most likely that little would change in the short term.
We have also heard reports that Dennis has been selling off old McLarens in recent weeks, suggesting that the old management may be cashing in before their departure.
GP.com said:
There are increasing reports in Germany that Mercedes-Benz is buying the remaining 60% of McLaren, with suggestions in the German press that the deal was signed at Hockenheim. According to the reports Ron Dennis met with DaimlerChrysler's chief financial officer Bodo Uebber and the company's head of research and development Dr. Thomas Weber to negotiate a deal at around $400m. This figure seems rather low but one must take into account the fact that McLaren has a debt burden resulting from the construction of its Technology Centre in Woking. The move, if confirmed, makes industrial sense if DaimlerChrysler is planning to expand its supercar production in Woking.
As to the structure of the team after any sale, it is most likely that little would change in the short term.
We have also heard reports that Dennis has been selling off old McLarens in recent weeks, suggesting that the old management may be cashing in before their departure.
FourWheelDrift said:
Been in the wind for a while.
There are increasing reports in Germany that Mercedes-Benz is buying the remaining 60% of McLaren, with suggestions in the German press that the deal was signed at Hockenheim. According to the reports Ron Dennis met with DaimlerChrysler's chief financial officer Bodo Uebber and the company's head of research and development Dr. Thomas Weber to negotiate a deal at around $400m. This figure seems rather low but one must take into account the fact that McLaren has a debt burden resulting from the construction of its Technology Centre in Woking. The move, if confirmed, makes industrial sense if DaimlerChrysler is planning to expand its supercar production in Woking.
As to the structure of the team after any sale, it is most likely that little would change in the short term.
We have also heard reports that Dennis has been selling off old McLarens in recent weeks, suggesting that the old management may be cashing in before their departure.
GP.com said:
There are increasing reports in Germany that Mercedes-Benz is buying the remaining 60% of McLaren, with suggestions in the German press that the deal was signed at Hockenheim. According to the reports Ron Dennis met with DaimlerChrysler's chief financial officer Bodo Uebber and the company's head of research and development Dr. Thomas Weber to negotiate a deal at around $400m. This figure seems rather low but one must take into account the fact that McLaren has a debt burden resulting from the construction of its Technology Centre in Woking. The move, if confirmed, makes industrial sense if DaimlerChrysler is planning to expand its supercar production in Woking.
As to the structure of the team after any sale, it is most likely that little would change in the short term.
We have also heard reports that Dennis has been selling off old McLarens in recent weeks, suggesting that the old management may be cashing in before their departure.
Yep, this rumour surfaced a couple of weeks ago and had the ring of truth about it then
The rules are making it easier for new teams to enter F1. Another privateer unit in Prodrive will be joining in 2008 and think of all the other teams that applied. The only reason only one was accepted was because there was only one place available, so if Daimler Chrysler decided to leave then there will be plenty of teams ready to jump in and replace them.
why on earth would DaimlerChrysler be considering a buyout of McLaren if they intended to duck out of F1 in the future? They've been a shareholder in the team for nearly a decade and there have been many opportunities for them to quit with no loss of honour, yet they haven't taken them. Of all the manufacturers, I'd say that they are the one with the most commitment to F1; they upped their shareholding in McLaren, bought out Ilmor and lately folded it into the brand. I also think that Norbert Haug is a strong character and provided he doesn't keel over from too many beers, will be a good figurehead. He certainly likes to have a laugh. In any case, I cannot see the Ronster being able to quit completely for at least the next 5 years.
Mercedes have a long and rather glorious history in motorsport, starting from the '30s when old man Porsche was an engineer there (the reason that Porsche are located in Stuttgart) and Carraciola and the others drove the Silver Arrows.
Then there were the F1 and sports car successes of the '50s with Fangio and Moss, and after that a load of other things up to today's F1 and DTM.
It's clear that racing is in the Mercedes corporate blood.
The thing is, it used to be in the Porsche corporate blood. Then a brilliant but dispassionate businessman took over. He was great for profits but literally could not care less about motor racing. We see the result - what was once a magnificent tradition from 718 to 550, 904, 906, 917, 962, etc, etc is now customer LMP2s, and even then only if it's immediately profitable to the parent. Otherwise it gets canned.
There's nothing that says that the Mercedes tradition will be maintained. A new regime steps in and they don't much care what price the firm may have paid for Ilmor or McLaren - if it doesn't produce the results that they need in the here and now: sayonara.
Then there were the F1 and sports car successes of the '50s with Fangio and Moss, and after that a load of other things up to today's F1 and DTM.
It's clear that racing is in the Mercedes corporate blood.
The thing is, it used to be in the Porsche corporate blood. Then a brilliant but dispassionate businessman took over. He was great for profits but literally could not care less about motor racing. We see the result - what was once a magnificent tradition from 718 to 550, 904, 906, 917, 962, etc, etc is now customer LMP2s, and even then only if it's immediately profitable to the parent. Otherwise it gets canned.
There's nothing that says that the Mercedes tradition will be maintained. A new regime steps in and they don't much care what price the firm may have paid for Ilmor or McLaren - if it doesn't produce the results that they need in the here and now: sayonara.
flemke said:
The thing is, it used to be in the Porsche corporate blood. Then a brilliant but dispassionate businessman took over.
OK so perm one from 3 - Schutz, Bohn or Wiedeking?
But I agree with you 100%....although they would claim that they have had a gentleman's agreement not to compete with VAG in LMP1...
I also think that the changes to LMP1 in the future will bring them back - perhaps with a Panamera silhouette....
rubystone said:
why on earth would DaimlerChrysler be considering a buyout of McLaren if they intended to duck out of F1 in the future?
I admit it's unlikely that DC would buy McLaren if they are planning to quit F1 soon, but I think it's a possibilty if the series no longer suits them, especially with the changes that look like happening after 2007. Look at Renault: until recently they were wavering on whether to continue in F1 because their president is only interested if it generates road-car profits. And as flemke pointed out Porsche have recently become more profit focused at the expense of their motorsport programme.
rubystone said:
I also think that the changes to LMP1 in the future will bring them back - perhaps with a Panamera silhouette....
That could be. The thing is, that will only occur (as long as Wedekind is running the show) if they are confident that, whatever the endeavour, it will be measurably profitable to the company. If it weren't for Wedekind, Porsche might not be around anymore or, if it were, it might be the possession of GM or Toyota or... who knows?
I'm not saying that Wedekind is a bad guy. If I were a P. shareholder I would be mighty pleased with the man. People who are in a position to know, however, assure me that he simply has no interest in motorsport at all.
The same thing could happen to Mercedes.
I doubt that many of us (were we alive and interested in such things then) would have at any point in the '60s, '70s, or '80s predicted that there would be a period of more than a decade when there was no Porsche factory endurance sports car or single-seater racing effort.
If it happened to P., it could happen to M B.
If the financial health of a company, especially a large one, begins to go pear-shaped and the leadership is replaced, often the first thing that the new leaders do is to chop out the supposed sources of misery (rather than taking the time and trouble to remedy them). Typically they take a one-off write-off which is cheered by the market (which will have identified the problem long before the previous mgmt did).
Racing will always be secondary or even tertiary to M B. If new mgmt were to come in at a time of duress, the motorsport programme would surely be under threat.
In time, the one saving grace for McLaren F1 may be that the cost structure of the formula looks to be declining in the next few years, whilst the costs of many other forms of motorsport seem still to be on the up.
Edited by flemke on Friday 18th August 22:07
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