Mercedes takes over Brawn

[fasteddy]

source Autosport

By Edd Straw    Monday, November 16th 2009, 12:09 GMT

The Mercedes F1 carMercedes-Benz has announced that it has taken over the Brawn Formula 1 team and re-named it Mercedes Grand Prix after buying a 75.1 per cent stake in the squad.

The German car giant will retain its role as McLaren's engine supplier until at least 2015, but will sell its 40 per cent stake in the squad back to the team over the next two years.

"Mercedes will compete in the F1 world championship next year starting with its own factory team," said head of Mercedes cars, Dr Dieter Zetsche.

"This is possible by the agreed acquisition of 75.1 per cent of Brawn GP, 45.1 per cent from Daimler and 30 per cent from our partner Aabar Investments. The rest will be with the current share - Ross Brawn, Nick Fry and other members. The interests of Daimler are aligned therefore it will be a true Mercedes-Benz team.

"Ross Brawn will continue to be the team principal and thereby we are maintaining his strength. Just like the engine team at Mercedes Benz High Performance Engines, the new Mercedes Benz grand prix team will be co-ordinated by Mercedes Benz Motorsport which is as everybody knows headed by Norbert Haug."

The team will be run out of Brawn's current headquarters in Brackley, rather than from a new facility.

Team principal Brawn said that he could not have imagined such a partnership happening 11 months ago when Honda announced it was pulling out of F1, leading to a winter of uncertainty for the squad that was soon to become Brawn.

"Both I and my fellow directors at Brawn GP are incredibly proud of our staff, drivers and everyone associated with our team and thank them for their commitment, outstanding teamwork and their focus on achieving results in sometimes difficult circumstances," he said.

"The senior management group will remain in place to lead our team and on behalf of everyone at Brawn GP, we are honoured to be representing such a prestigious brand as Mercedes-Benz in Formula One next year and will be working together to do our best to reward their faith in our team."

The deal means that Mercedes will compete in Formula 1 as a full factory team for the first time since Juan Manuel Fangio won the world title in 1955.

Neither driver has yet been announced for the new squad. 2009 driver Rubens Barrichello has already joined Williams for next season while Jenson Button has yet to decide on his future.

AUTOSPORT understands that Nico Rosberg will be one of Mercedes' drivers, while the company's motorsport chief Norbert Haug said on Sunday that discussions have taken place with former BMW Sauber driver Nick Heidfeld.

[fasteddy]

Dear Colleagues,

Today we announced that Mercedes-Benz will compete in the Formula 1 world championship with its own works team starting in 2010. I?d like to briefly explain this decision to you, as you may be asking why Formula 1 now? Aren?t others getting out? Is it so smart for Mercedes to take a different course?

We asked ourselves the same questions and intensively discussed the pros and cons. In the end, the decision was clear: We are going to build on our strong position in Formula 1 - and our future team will be 100% Mercedes!

Our situation differs from that of many of our competitors. Successful motor sports have historically been at the core of our brand.110 years ago, the very first car to bear the Mercedes name was a race car. Or think about our legendary ?Silver Arrows?, which turned 75 years old this year and set the tone for so many chapters in the history of motor sports. In contrast to other manufacturers we?ve also played a highly successful role in Formula 1 over the last decade and a half. We?ve been world champion four times: we won the Constructors? Championship once and the World Drivers? Championship three times, most recently with Lewis Hamilton in 2008. Since1997 we?ve won more than every fourth Formula 1 race. Last season we supplied the engines for the double world championship team, Brawn GP Mercedes.

Why is this success important to our business? Simply because there is no more global stage in motor sports than Formula 1. In practically every region of the world - especially in the new growth centers of our industry - the pinnacle of motor sports has millions of fans. It would be a wasted opportunity not to more effectively leverage the fascination of the Mercedes-Benz brand on this great stage.

That?s all the more important, as we also deliver on a promise: In the future we?re targeting achieving greater awareness for our brand at significantly less cost. This will be possible through greater revenues from commercial rights, as well as through the binding spending limits to which teams are obliged to adhere. At the same time, we?ll continue our work with the McLaren Group through a new form of cooperation. As a part of that agreement, the McLaren Group will purchase our 40% stake over two years. That will make us rivals on the track, but we will always treat each other in a fair, sportsman-like manner. Beyond the race track, along with McLaren and the other teams, we want to further develop fan interest in Formula 1.

In sum, all of the measures we?ve agreed to undertake in Formula 1 will be reduced to an annual total of less than 60 million Euros over the next two years. That?s about one-quarter of the amount that we?d budgeted in previous years.

I?d like to make one final point that?s important to me. Our commitment to Formula 1 and to leadership in green technologies are not mutually exclusive. To the contrary, they have a common goal: top performance. Wherever we compete, we strive to offer the best. That?s what Daimler stands for. That?s what our Mercedes brand stands for. And you can count on our Formula 1 effort to do the same!


Sincerely,


Dieter Zetsche

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Please find attached and below, the Daimler press release concerning Mercedes Grand Prix in the 2010 Formula 1 World Championship.




2010 in Formula 1: Mercedes Grand Prix

Daimler AG and McLaren Group change their form of cooperation

November 16, 2009 - Stuttgart? Mercedes-Benz will enter the Formula 1 World Championship with its own team, beginning with the 2010 season, and Daimler AG and McLaren Group will change their form of cooperation with effect as of 13 November 2009. This was announced by Daimler AG today.

Daimler AG together with Aabar Investments PJSC will take over 75.1 per cent of the Brawn GP team, with Daimler taking 45.1 per cent and Aabar 30 per cent. The rest of the 24.9 per cent will remain with the current stakeholders. With 9.1 per cent, Aabar is the biggest single shareholder of Daimler AG. This transaction is subject to the approval of the EU and the Swiss cartel authorities.

The background to this decision are the new terms and conditions for Formula 1. The ?Resource Restrictions? set by FOTA and FIA effectively limit expenditure for the design, construction and running of the racing cars. In addition, there will be a significantly higher income available for a Formula 1 team generated by the commercial rights of the racing series following the signing of the new Concorde Agreement.

The partnership between McLaren Mercedes has been in place since 1995 and ended its 15th joint Formula 1 season in 2009. The change to the form of cooperation is taking place by mutual agreement. Mercedes-Benz and McLaren will continue to co-operate with each other and the supply of engines could continue until 2015.

The McLaren Group have set themselves new targets, especially in the automotive sector, and Daimler understands and respects these new strategic objectives. For this reason, it has been agreed that the buy-back by the McLaren Group of the 40 per cent McLaren share owned by Daimler AG will be completed by 2011.

By taking this decision, Mercedes-Benz resumes its marvellous motor racing history on the 75th anniversary of the Silver Arrows, the world?s most unique racing cars. Mercedes wants to continue the tradition in the style of these flawless Silver Arrows, which put their stamp on each era by winning the majority of the races they competed in.

?Mercedes-Benz is the most valued and best-known premium automotive brand in the world. This brand looks for competition of the utmost quality in all relevant fields in order to continually improve its performance in the face of such new challenges?, explains Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars.
?Due to the new Formula 1 environment, we will face the competition in future on the most important motor sports stage with our own Silver Arrow works team.

?Our new Silver Arrow Formula 1 team is a great sporting and technical challenge and we will tackle this with sporting spirit and full of enthusiasm.?

Mercedes-Benz will restructure their Formula 1 programme and work hard to achieve further savings, going beyond the already completed steps for significant cost reductions and improved efficiency.

Since 1995, the beginning of the partnership, McLaren and Mercedes-Benz have competed in 256 Grand Prix events and have achieved 60 victories. In 1998, 1999 and 2008, the British-German team won the drivers? World Championships, as well as the World Constructors? Championship in 1998. The McLaren Mercedes team became runner-up in the World Championships ten times, with five times in the drivers? and constructors? rankings respectively.

After winning the drivers? title with Lewis Hamilton last year, Vodafone McLaren Mercedes finished third in the World Constructors? Championships this year. The 2008 World Champion won two races with his current car, the MP4-24, achieving a first historic victory with the brake energy-recovery system, KERS Hybrid. No other driver scored more points in the last eight races from the season?s total of 17 races than Lewis Hamilton.
       
?I want to thank McLaren for a successful collaboration over the last decade and a half?, says Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars. ?For the benefit of both Mercedes and McLaren, we will continue our partnership cooperation in future. We will be rivals on-track but, off-track, we will cooperate with McLaren and the other teams in order to create the best possible product for spectators worldwide.?

?We look back on 15 successful years of great collaboration with McLaren; in that time, we won four world-championship titles and finished ten times as runner-up in the drivers? and constructors? rankings,? states Norbert Haug, Vice-President Mercedes-Benz Motorsport. ?Since the first victory in the 1997 Australian Grand Prix, the modern Silver Arrows have achieved a total of 60 victories in 223 races to ensure that our brand symbol, the star, stands for the greatest successes in Formula 1. We thank our partner and will continue to work with McLaren based on an excellent partnership.?

Mercedes Grand Prix, the management team of the former Brawn GP team, will continue to work under the leadership of Ross Brawn, who will continue in his well-known role. The Formula 1 team, as well as the engine team of Mercedes-Benz High Performance Engines, will be co-ordinated by Mercedes-Benz Motorsport, headed by their Vice-President, Norbert Haug.

"Brawn GP has been through an incredible journey over the last 12 months. 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?, Team Principal Ross Brawn looks back on a difficult beginning of the year which eventually turned into an extremely successful season.

"Both I and my fellow Directors at Brawn GP are incredibly proud of our staff, drivers and everyone associated with our team and thank them for their commitment, outstanding teamwork and their focus on achieving results in sometimes difficult circumstances. The senior management group will remain in place to lead our team and on behalf of everyone at Brawn GP, we are honoured to be representing such a prestigious brand as Mercedes-Benz in Formula One next year and will be working together to do our best to reward their faith in our team."

The new Silver Arrow team, Mercedes Grand Prix, will compete in Formula 1 as a works team in its own right. Synergies between the 100 per cent Daimler-owned subsidiary Mercedes-Benz High Performance Engines in Brixworth, UK, and the Mercedes Grand Prix team based about 28 miles from there in Brackley in the UK, will create even greater efficiency.

It is our target to develop a model for our Formula 1 activities which will initially be run with significantly reduced budgets by Mercedes-Benz and which, in the foreseeable future, will be self-financing?, comments Norbert Haug. ?Furthermore, we naturally want to inspire our faithful spectators and TV viewers worldwide and  maximize media coverage for our brand. With Formula 1, Mercedes-Benz can continue to clearly demonstrate its willingness to compete and win on the most important motor sports competition stage in the world.?

Khadem Al Qubaisi, Chairman, Aabar Investment PJSC comments: "Aabar is delighted to join forces with Daimler AG and its world leading brand Mercedes-Benz in order to create a new Formula One Team which follows in the footsteps of the longstanding and successful tradition of the famous ?Silver Arrows?.

?Ever since Aabar became the largest shareholder in Daimler AG, the cooperation between our two organisations has been exemplary, and we have already co-invested in Tesla. Aabar is confident that further successes will follow in this arena.

?Bearing in mind the recent outstanding success of the Abu Dhabi GP, which brought Formula One to the United Arab Emirates for the first time, it is especially exciting to realise that next year, our own cars will be in the field, with the genius of Ross Brawn, who is still deeply involved with the team, now backed by the unrivalled excellence of Mercedes-Benz across the entire spectrum of automotive technology. It is a fantastic prospect, which makes me both pleased and proud for my country.?

[Mike T]

Hmmm, does that mean that Mercedes-Benz won the F-1 title last season? 

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Unofficially they definitely had a lot of force behind it beside supplying the engine. Next year there maybe only two car manufacturer, Ferrari and Mercedes-Benz. Will it be a classic showdown in the next few years? Who will have the best package including drivers.

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Mercedes-Benz parent company Daimler AG will have stakes in two Formula 1 teams next season, with a majority shareholding in Brawn GP coming into effect while its 40% stake in McLaren Racing is set to be bought out by the McLaren Group over the coming year.

"In a transaction structured so as to be completed by 2011, the McLaren Group will undertake a phased purchase of the 40 per cent shareholding currently owned by Daimler AG. As a result, the McLaren Group will become a fully independent stand-alone corporate entity," the company confirmed in a statement on Monday.

This year's championship-winning Brawn GP team will be renamed Mercedes Grand Prix, and Daimler AG's statement confirming the purchase used the term 'Silver Arrows' to describe its future single-seaters.

However the collaboration with McLaren will continue beyond the buyout of Mercedes' stake, since the German manufacturer will maintain its supply of engines to McLaren until 2015, at which time a prolonging agreement may come into place.

"The team will continue to be known as Vodafone McLaren Mercedes, its distinctive silver-with-red livery will remain unchanged, and Mercedes-Benz will continue as both an engine supplier and a partner," read the McLaren Group statement.

By the time the new engine-supply agreement reaches its term in 2015, the working relationship between McLaren and Mercedes-Benz will have reached its 21st year. "By which time it will have become by some margin the longest such association in Formula 1 history," McLaren pointed out.

"For the benefit of both Mercedes and McLaren, we will continue our partnership cooperation in the future," said Dieter Zetsche, Daimler CEO and head of Mercedes-Benz, in a separate statement. "We will be rivals on-track but, off-track, we will cooperate with McLaren and the other teams in order to create the best possible product for spectators worldwide."

Mercedes-Benz Motorsport boss Norbert Haug looked back at the 60 Grand Prix victories, four titles and ten runner-up positions gained with McLaren Racing since 1995 in the drivers' and constructors' championships: "We thank our partner and will continue to work with McLaren based on an excellent partnership.
Click here to find out more!
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"The reaffirmation of the two companies' commitment to each other is the result of many weeks of careful and cooperative discussion," the McLaren Group statement explained, adding that the agreement "covers both parties' continued involvement in the Vodafone McLaren Mercedes Formula 1 partnership as well as a shared intention to act in the overall best interests of the sport of Grand Prix racing.

"It also reflects the independent vision of both companies with regard to their automotive production strategies," the press release indicated, referring to McLaren Automotive's intention of building "its own range of high-performance production sports cars" starting in 2011.

"This is a win-win situation, for both McLaren and Daimler," said Ron Dennis, the Executive Chairman of McLaren Automotive and founder of the McLaren Group.

"I've often stated that it's my belief that, in order to survive and thrive in 21st-century Formula 1, a team must become much more than merely a team," Dennis explained. "The next few years will be a very exciting time for McLaren, during which period we intend to become an ever-stronger technological and economic force.

"Over the past two years we've analysed in great detail the challenge of entering the high-performance production sports car market," he continued, however underlining that "Formula 1 will always be a core activity, for sound business reasons as well as for historical sporting reasons.

"All of our partners will of course continue to play a crucial role in our Formula 1 programme," Dennis said. "For that reason, and because the engines they produce are very competitive, we're delighted that Mercedes-Benz has committed to continue not only as an engine supplier but also as a partner of ours until 2015 ? and perhaps thereafter."

[fasteddy]

Mercedes-Benz will enter the Formula 1 World Championship with its own team, beginning with the 2010 season, and Daimler AG and McLaren Group will change their form of cooperation with effect as of 13 November 2009. This was announced by Daimler AG today.
 
Daimler AG together with Aabar Investments PJSC will take over 75.1 per cent of the Brawn GP team, with Daimler taking 45.1 per cent and Aabar 30 per cent. The rest of the 24.9 per cent will remain with the current stakeholders. With 9.1 per cent, Aabar is the biggest single shareholder of Daimler AG. This transaction is subject to the approval of the EU and the Swiss cartel authorities.
 
The background to this decision are the new terms and conditions for Formula 1. The ?Resource Restrictions? set by FOTA and FIA effectively limit expenditure for the design, construction and running of the racing cars. In addition, there will be a significantly higher income available for a Formula 1 team generated by the commercial rights of the racing series following the signing of the new Concorde Agreement.
 
The partnership between McLaren Mercedes has been in place since 1995 and ended its 15th joint Formula 1 season in 2009. The change to the form of cooperation is taking place by mutual agreement. Mercedes-Benz and McLaren will continue to co-operate with each other and the supply of engines could continue until 2015.
 
The McLaren Group have set themselves new targets, especially in the automotive sector, and Daimler understands and respects these new strategic objectives. For this reason, it has been agreed that the buy-back by the McLaren Group of the 40 per cent McLaren share owned by Daimler AG will be completed by 2011.
 
By taking this decision, Mercedes-Benz resumes its marvellous motor racing history on the 75th anniversary of the Silver Arrows, the world?s most unique racing cars. Mercedes wants to continue the tradition in the style of these flawless Silver Arrows, which put their stamp on each era by winning the majority of the races they competed in.
 
?Mercedes-Benz is the most valued and best-known premium automotive brand in the world. This brand looks for competition of the utmost quality in all relevant fields in order to continually improve its performance in the face of such new challenges?, explains Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars.
?Due to the new Formula 1 environment, we will face the competition in future on the most important motor sports stage with our own Silver Arrow works team.
 
?Our new Silver Arrow Formula 1 team is a great sporting and technical challenge and we will tackle this with sporting spirit and full of enthusiasm.?
 
Mercedes-Benz will restructure their Formula 1 programme and work hard to achieve further savings, going beyond the already completed steps for significant cost reductions and improved efficiency.
 
Since 1995, the beginning of the partnership, McLaren and Mercedes-Benz have competed in 256 Grand Prix events and have achieved 60 victories. In 1998, 1999 and 2008, the British-German team won the drivers? World Championships, as well as the World Constructors? Championship in 1998. The McLaren Mercedes team became runner-up in the World Championships ten times, with five times in the drivers? and constructors? rankings respectively.
 
After winning the drivers? title with Lewis Hamilton last year, Vodafone McLaren Mercedes finished third in the World Constructors? Championships this year. The 2008 World Champion won two races with his current car, the MP4-24, achieving a first historic victory with the brake energy-recovery system, KERS Hybrid. No other driver scored more points in the last eight races from the season?s total of 17 races than Lewis Hamilton.
                                                                                                         
?I want to thank McLaren for a successful collaboration over the last decade and a half?, says Dr. Dieter Zetsche, CEO of Daimler AG and Head of Mercedes-Benz Cars. ?For the benefit of both Mercedes and McLaren, we will continue our partnership cooperation in future. We will be rivals on-track but, off-track, we will cooperate with McLaren and the other teams in order to create the best possible product for spectators worldwide.?
 
?We look back on 15 successful years of great collaboration with McLaren; in that time, we won four world-championship titles and finished ten times as runner-up in the drivers? and constructors? rankings,? states Norbert Haug, Vice-President Mercedes-Benz Motorsport. ?Since the first victory in the 1997 Australian Grand Prix, the modern Silver Arrows have achieved a total of 60 victories in 223 races to ensure that our brand symbol, the star, stands for the greatest successes in Formula 1. We thank our partner and will continue to work with McLaren based on an excellent partnership.?
 
Mercedes Grand Prix, the management team of the former Brawn GP team, will continue to work under the leadership of Ross Brawn, who will continue in his well-known role. The Formula 1 team, as well as the engine team of Mercedes-Benz High Performance Engines, will be co-ordinated by Mercedes-Benz Motorsport, headed by their Vice-President, Norbert Haug.
 
"Brawn GP has been through an incredible journey over the last 12 months. 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?, Team Principal Ross Brawn looks back on a difficult beginning of the year which eventually turned into an extremely successful season.
 
"Both I and my fellow Directors at Brawn GP are incredibly proud of our staff, drivers and everyone associated with our team and thank them for their commitment, outstanding teamwork and their focus on achieving results in sometimes difficult circumstances. The senior management group will remain in place to lead our team and on behalf of everyone at Brawn GP, we are honoured to be representing such a prestigious brand as Mercedes-Benz in Formula One next year and will be working together to do our best to reward their faith in our team."
 
The new Silver Arrow team, Mercedes Grand Prix, will compete in Formula 1 as a works team in its own right. Synergies between the 100 per cent Daimler-owned subsidiary Mercedes-Benz High Performance Engines in Brixworth, UK, and the Mercedes Grand Prix team based about 28 miles from there in Brackley in the UK, will create even greater efficiency.
 
It is our target to develop a model for our Formula 1 activities which will initially be run with significantly reduced budgets by Mercedes-Benz and which, in the foreseeable future, will be self-financing?, comments Norbert Haug. ?Furthermore, we naturally want to inspire our faithful spectators and TV viewers worldwide and  maximize media coverage for our brand. With Formula 1, Mercedes-Benz can continue to clearly demonstrate its willingness to compete and win on the most important motor sports competition stage in the world.?
 
Khadem Al Qubaisi, Chairman, Aabar Investment PJSC comments: "Aabar is delighted to join forces with Daimler AG and its world leading brand Mercedes-Benz in order to create a new Formula One Team which follows in the footsteps of the longstanding and successful tradition of the famous ?Silver Arrows?.
 
?Ever since Aabar became the largest shareholder in Daimler AG, the cooperation between our two organisations has been exemplary, and we have already co-invested in Tesla. Aabar is confident that further successes will follow in this arena.
 
?Bearing in mind the recent outstanding success of the Abu Dhabi GP, which brought Formula One to the United Arab Emirates for the first time, it is especially exciting to realise that next year, our own cars will be in the field, with the genius of Ross Brawn, who is still deeply involved with the team, now backed by the unrivalled excellence of Mercedes-Benz across the entire spectrum of automotive technology. It is a fantastic prospect, which makes me both pleased and proud for my country.?

Press Release

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(CNN) -- Mercedes-Benz will head up their own Formula One team next season after the German car manufacturer confirmed they have taken a 75.1 percent share in Brawn GP -- with Ross Brawn remaining as team principal.

Mercedes engines powered Brawn's Jenson Button to the world championship this season -- while the team also claimed the constructors' championship.

Meanwhile, Lewis Hamilton, Button's predecessor as world champion, was also sitting behind a Mercedes engine in his McLaren.

The partnership between McLaren and Mercedes has been in place since 1995 and ended its 15th season together in 2009.

The new team will become known as Mercedes Grand Prix, with Brawn in control, while Mercedes-Benz Motorsport vice-president Norbert Haug will work with the F1 team and the engine team of Mercedes-Benz High Performance Engines.

As part of the deal, Mercedes' parent company Daimler AG relinquished their 40 per cent stake in McLaren, but will remain their engine suppliers for the next six seasons.

Daimler AG chief executive Dr. Dieter Zetsche explained in a press release: "Mercedes-Benz is the most valued and best-known premium automotive brand in the world.

"This brand looks for competition of the utmost quality in all relevant fields in order to continually improve its performance in the face of such new challenges.

"Due to the new Formula One environment, we will face the competition in future on the most important motor sports stage with our own Silver Arrow works team.

"Our new Silver Arrow Formula One team is a great sporting and technical chal-lenge and we will tackle this with sporting spirit and full of enthusiasm."

The move could have ramifications for the out-of-contract Button, with Mercedes believed to favor an all-German partnership of Nico Rosberg and Nick Hiedfeld.

Such a move could see Button link up with Hamilton at McLaren and the 29-year-old was believed to have toured McLaren's Woking factory last week.

Brawn, who has previously baulked at meeting Button's wage demands, was thrilled with the deal after forming Brawn GP following the withdrawal of Honda from the sport.

"We are honored to be representing such a prestigious brand as Mercedes-Benz in Formula One next year and will be working together to do our best to reward their faith in our team," said Brawn on the team's official Web site.

"Brawn GP has been through an incredible journey over the last 12 months. 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's offer to buy our team, which will secure its future," he added.