McLaren Technology Group CEO Ron Dennis has stepped down from his role, and his contract won't be renewed when it expires in January.
69-year-old Dennis has been involved with McLaren for 36 years, but a decision has been taken by shareholders to place him on gardening leave.
Dennis will, however, remain a member of the boards of the McLaren Technology Group and McLaren Automotive, but loses his position at the helm.
He said in a statement today "The grounds they [the shareholders] have stated are entirely spurious; my management style is the same as it has always been and is one that has enabled McLaren to become an automotive and technology group that has won 20 Formula 1 world championships and grown into an £850 million-a-year business."
Dennis added that the representatives of TAG and Mumtalakat, who are the other main shareholders in McLaren, ignored warnings from the management team about "consequences of their actions on the business".
The McLaren group is made up of McLaren Racing, McLaren Marketing and McLaren Applied Technologies. The brand’s car division, McLaren Automotive, isn't part of the group, and therefore won't be affected by this leadership change. A spokesman for the division told Autocar last month that despite the fact Dennis owns 10% of Automotive, he has no day-to-day involvement with the business. The company is run by CEO Mike Flewitt.
Dennis, who owns 25% of the McLaren Technology Group, had wanted to purchase an additional 50% of the group from the Bahraini sovereign wealth fund Mumtalakat and 25% from his business partner Mansour Ojjeh when it became clear he could be ousted, but failed to raise the capital by the required deadlines.
"My first concern is to the business I have built, and to its 3500 employees," continued Dennis in his statement. "I will continue to use my significant shareholding in both companies and my seats on both boards to protect the interests and value of McLaren and help shape its future."
Dennis added that he will launch a new technology investment fund once his contract ends at McLaren.
"This will capitalise on my expertise, my financial resources, together with external investment to pursue the many commercial opportunities I have been offered in recent years but have been unable to take up while being so committed to the existing business," he concluded.
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Thanks For everything, Ron
Not really. He's pretty remote from the race team and has been for some time, although he attended a lot of races. Other people run the other parts of the group.
The race results have been poor for some time because the team have underperformed, which is a big factor because its a window in to McLaren Group for the rest of the world.
You can't deny RD has built McLaren in to a world Class company, but nothing lasts for ever, his management "style" is probably not that suitable for a group of the size of McLaren, other people run it on a day to day basis, he may be getting in the way.
I think its a shame that he couldn't walk away in to graceful retirement.
Ron Dennis
He probably spent more money than a normal Chairman but just look at the results.
The trouble with corporate culture they are just interested in the bottom line where I believe Ron always wanted the money but was also interested in the journey to get it and the people along the way.
The whole story.
I think it is shameful what they have done, but look forward to Ron's new ideas.
To be quite honest, the
eseaton wrote:
How do you know that? I have no idea what impact this will have on McLaren, if any. Ferrari produced very mediocre cars at the time of Enzo's death and have done much better things after him.