Mercedes to buy McLaren

[Rex Judicata]

This story or rumor has appeared on and off for a while. Mercedes Benz (DaimlerChrysler) owns 40% of McLaren in a 1999 deal. Ojjej and Dennis each own 30%, and are prohibited from selling independently. With McLaren's less than stellar performance with the company engines, there are noises in the system that Mercedes wants to buy the outstanding 60% of McLaren. As RD approaches 60, it could be a time for him to cash-out and retire.

[Adam43]

Rex, with something like this it is best to post some links, or reference your source. For others here are a couple of articles from today:
http://www.paddocktalk.com/news/html...icle&sid=39283
http://www.crash.net/news_view~t~Mer...~id~135656.htm

This seems to have been prompted by a report in Bild! Make of that what you will!

Still it will probably happen eventually and has always been on the cards.

[Marbot]

hmmmm.....'The Mercedes F1 Racing Team'.......based in Woking.

[Alan Raine]

Stunning factory though!

[Marbot]

Originally Posted by Alan Raine

Stunning factory though!

Oh yes,it'll be well worth the money.

[Knowlesy]

It has been coming hasn't it? It will be sad when it happens, it isn't nice to see racing heritage and passion swallowed up by a giant corporation.

[Red]

I'll be so sad if this comes true.... Ron and Frank/Patrick are the last ones.. And Frank isn't looking particularily good either...

And yes, I do like Ron. There, I said it. Flame me now

[R59]

Originally Posted by AdamAshmore

This seems to have been prompted by a report in Bild! Make of that what you will!

From my limited knowledge of the media in Germany, Bild could easily be renamed Mist due to the high quality of stories that they print, usually followed by legal proceedings, which they more than often lose. However the stories often inflate their readership such that the costs are smaller than money they make through spreading the shirt.

Regardless of Ron reaching 60, I have a feeling that Da Doo Ron Ron and Mansour Ojejj will attempt to out live Mr Berns in F1, which will will be a tall order since Mr Berns has no intention of curling his toes.

I feel that it would be more likely that the board of Daimler Chrysler AG were to pull the plug on the whole thing, and flog Ron the remnants of Ilmor at a cut-down price and run away before the auditors turn up.

But hey, what do I know. (probably more than the average Bild reporter)

[Knowlesy]

Ron is a legend Red. An absolute legend.

[Red]

I know matey.... Altough he was "the enemy", I have utmost respect for him. And I like him too.

Few will manage to achieve what he has achieved, and contribute to F1 like he did.

[Fishbone Mcgraw]

Interesting news, although hardly a new rumour to anyone who has followed the sport inside the last 10 years.

My only reservation is that Mercedes takeovers are bad news for the takeoveree. Benz were a failing car company who took over a third of the failing American car industry with Chrysler (a third of that bit that is not run by Toyota, yet) and things have since gone from bad to worse for them. What else are they going to takeover and make a bad fist of? This would not be a good thing for the team unless Mercedes boost financial input but leave the rest to the McLaren team core of personnel. Also, unless they keep the McLaren name, they would also lose the kudos that goes with making road cars in the McLaren name so it does not make a lot of sense to me.

Look at BMW's efforts so far on their own - hardly world championship material, at least when their engine was in the back of a Williams chassis they won a few races and at Le Mans. I don't see BMW ever winning a race, let alone a championship at any point. If nothing else, they are simply not big enough to plough the resources in that are required, and don't have any track record of success or history in top flight single seat formula chassis construction and development (to be honest neither did Sauber!). The brilliant Mike Lawrence on Pitpass.com often talks superbly about the myth behind the German car companies engineering expertise (see below link about JPM's departure from the McLaren Mercedes team which goes into this subject with some interesting anecdotes)...

http://www.pitpass.com/fes_php/pitpa...s_art_id=28665

Having said all that, we have been hearing this rumour on and off for years. It may or may not happen. If it does I suspect they may have been influenced by BMW's buyout of Sauber. Perhaps Audi are on the way too as they seem to be looking for an excuse to exit ALMS at the moment...

[Rex Judicata]

Originally Posted by AdamAshmore

Rex, with something like this it is best to post some links, or reference your source. For others here are a couple of articles from today:
http://www.paddocktalk.com/news/html...icle&sid=39283
http://www.crash.net/news_view~t~Mer...~id~135656.htm

As you point out, there were several sources for the same story. This seems a bright and connected group, so I had no doubts they probably read some of the same news items. I was reluctant to post direct links because of copyright considerations. When I post or provide something for my students, I always get the author/publisher's authorization. Clearly, I can't use one of my standard disclaimers here, since we don't meet the requirements.

In accordance with Title 17 U.S.C. Section 107, any copyrighted work in this message is distributed under fair use without profit or payment for non-profit research and educational purposes only. http://www.law.cornell.edu/uscode/17/107.shtml

[Peter Mallett]

[O Topic]Rex.

We don't allow replication of entire articles but there's no reason why you can't state "It's reporteed at "insert link" that so and so has been seen out with Britney spears.................. oops wrong forum. [/O Topic]

After reading the story of the early days of McLaren in Morosport recently, and reviwing its history, this would definitly be a shame but then again nothing lasts forever does it?

[davyboy]

Its a near certainty that Mercedes will buy McLaren at some stage. They'll probably keep the name McLaren and also its close association with the Mercedes brand, but probably use it as a showpiece for the development of supercars a la VAG/Lamborghini.

What will happen the F1 team, probably not a lot. I imagine they'll still keep the Team McLaren-Mercedes there too because the McLaren name has such a very rich heritage and after more 10 years' association with Mercedes is almost synonymous there too.

I doubt very much that McLaren's current results will be the driving factor for the sale of the remaining shares... I imagine that some long term 'conclusion' has been worked out behind the scenes some time ago.

Is it sad ? Of course it is, but then its clear to see that F1 has 'gone corporate' some time ago and the pit lane is already starting to be made up of Thiessen's, Fry's and Briatore's rather than the entrepreneurial Dennis', Williams' and Jordan's of before.

[Rex Judicata]

Originally Posted by Peter Mallett

[O Topic]We don't allow replication of entire articles but there's no reason why you can't state "It's reporteed at "insert link" that so and so has been seen out with Britney spears .................. oops wrong forum. [/O Topic]

Ok, we'll see how to cite without a link off this site.

Originally Posted by Peter Mallett

After reading the story of the early days of McLaren in Morosport recently, and reviwing its history, this would definitly be a shame but then again nothing lasts forever does it?

Peter, you are right, and it is a pity. However, the terms of the purchase were widely reported, so its only been a matter of time before they complete the terms of the contract. IMHO, there are two driving forces. First, the age of the Ronster. Second, the success of the F1 project.

[Adam43]

The Anthony Rowlinson editorial in the GP review reads like The Ron has retired.

red, you've made my day

[Greenback]

In the beginning of this season, there was an article in F1racing saying that there is also a possibility that Mclaren might want to buy themselves out of the JV because proud RON is now financially more stable because of the big sponsors on board (e.g. JW and Vodafone).

Personally I feel that Mclaren and Merc JV is destined to break up or buy over because there isnt many successful story of English/German partnership in the corporate world.

[Rex Judicata]

Originally Posted by Greenback

In the beginning of this season, there was an article in F1racing saying that there is also a possibility that Mclaren might want to buy themselves out of the JV because proud RON is now financially more stable because of the big sponsors on board (e.g. JW and Vodafone).

Since the contract was signed in 1999, the rumor of MB executing the option has appeared several times. To have created such terms in the first place suggests that Ojjej and Ron were thinking of their personal exit strategies, and what better that to make a deal with one of the greatest companies?

[Mr V]

Mercades may feel let down by McLaren, but McLaren can feel even more aggreaved at Mercades.

It was always going to happen someday, but the lose of Ron and possibly the McLaren name (one day) will be very sad for F1.

[Andrew2001]

Originally Posted by davyboy

Its a near certainty that Mercedes will buy McLaren at some stage. They'll probably keep the name McLaren and also its close association with the Mercedes brand, but probably use it as a showpiece for the development of supercars a la VAG/Lamborghini.

Well they had better keep the McLaren name otherwise I'll write them a letter detailing why it is a very bad move to lose the McLaren name. BMW have done the write thing by keeping teh Sauber name - I'd honestly just about lose 97% of my enthusiasm to F1 if the McLaren name vanished, as if the direction the regulations are taking is not a good enough reason...

[Greenback]

If Merc acquire Mclaren, I am sure they will keep the Mclaren name because both companies not in conflicting business. Mclaren brand itself is worth alot of money and it will not make any business sense to kill it.

Merc could possibly use Mclaren and the MTC to set up a new division to produce Mclaren Brand super sports cars to rival ferrari and lambo

[mountainstar]

Ron has been laying the groundwork for his retirement here in Colorado for several years now. Wish I could tell you more, but I don't need to divulge his personal business.

[BootsOntheSide]

Originally Posted by Rex Judicata

With McLaren's less than stellar performance with the company engines

Is this a joke? Find me one credible expert who doesn't regard the Mercedes engines as the biggest cause of McLaren's problems in recent years.

[ensign14]

There was a valedictory air about the recent F1 Racing article on Ron...he's coming up to 60, why should he not chill?

[newoutsider]

Thinks

it may be Mansour who wants a return on his investment and who is pushing Ron to cash in.