Paul Jeffrey
Premium
The McLaren Honda team have today confirmed long standing Chairman Ron Dennis has been placed on gardening leave after a decision to remove the the 69 year old from his role as Chairman and Chief Executive of the McLaren Technology Group was taken by the team's remaining shareholders.
Dennis will retain his role on the board of both the McLaren Technology Group and McLaren Automotive Limited as well as 25% stake in the company. Both the Bahraini Mumtalakat investment fund and long time ally Mansour Ojjeh (50% and 25% stakeholders respectively) made the decision to enforce Dennis stepping down from his role following the end of the worst season in recent memory for McLaren, a team that has failed to win a Grand Prix since Jenson Button crossed the finished line at the 2012 Brazilian Grand Prix.
"I am disappointed that the representatives of TAG and Mumtalakat, the other main shareholders in McLaren, have forced through this decision to place me on gardening leave, despite the strong warnings from the rest of the management team about the potential consequences of their actions on the business,” Dennis said.
“The grounds they 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 One world championships and grown into an £850 million a year business.
“Throughout that time I have worked closely with a series of talented colleagues to keep McLaren at the cutting edge of technology, to whom I will always be extremely grateful.”
Ron Dennis' current contract is due to expire at the end of January, and the former mechanic and architect of McLaren's 20 World Championship successes plans to remain on the board of the McLaren group whilst also turning his attention to business activity outside of his former Formula One commitments.
“Ultimately it has become clear to me through this process that neither TAG nor Mumtalakat share my vision for McLaren and its true growth potential. But my first concern is to the business I have built and to its 3,500 employees.
“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.
“In addition I intend to launch a new technology investment fund once my contractual commitments with McLaren expire. This will capitalise on my expertise, my financial resources, together with external investment to pursue the many commercial opportunities l have been offered in recent years but have been unable to take up while being so committed to the existing business.”
It is not yet clear who will take over Dennis's role at McLaren post January 2017, however the group have a number of highly capable staff across the business and disruption to the immediate operation of the organisation should be kept to a minimum.
The announcement brings the end of an era to McLaren. After recent struggles in Formula One it will be interesting to see if the change sparks long term improvements in this once great team.
Surprised at the McLaren announcement? Do you think it is a wise move to remove Dennis from the group? Let us know in the comments section below!
Last edited:
