ron-dennis-mclaren-1981-2016
Ron Dennis Ousted As Boss of McLaren, Is Down But Not Out
Formula One
After 35 years at the helm of McLaren Ron Dennis has been forced out of the company he helped to create and shape into a highly successfully operation. Dennis was ousted by fellow shareholders who cornered him into a position forcing him to relinquish his position a Chief Executive and Chairman of the McLaren Group. The McLaren Group comprises of a technology development division, automotive and formula one operations. Dennis still retains a 25 percent controlling stake in the group of companies. His long time business partner and friend, Mansour Ojjeh, also owns 25 percent and Bahrani’s Mumtalakat Investment Fund owns the remaining 50 percent. However over the past 5 years Dennis’ friendship with Mansour and the Bahrani’s has soured and the removal of Dennis has been long in the planning. Sources claim that the fallout centred on Dennis’ autocratic style of leadership and the future direction of the McLaren Group. When Dennis founded McLaren Automotive in 2014 it wasn’t profitable and the boardroom cracks that had festered for some years before began to split open. But McLaren Automotive has found a sure footing and is now profitable. The success of McLaren Automotive reflects on the lack of success of McLaren’s F1 operation. The renewed partnership with Honda in 2015 yielded embarrassing results in it’s first year. McLaren’s lack of current success in F1 has cost it dear with long time sponsors and partners opting to move to other teams where results and TV coverage are guaranteed. Under the Dennis era McLaren won 159 races, ten drivers titles and seven constructors championships between 1981 and 2016. Lewis Hamilton won McLaren’s last drivers title in 2008, Jenson Button won McLaren’s 182nd and last race to date at the 2012 Brazilian Grand Prix. So was Dennis ousted because of the comparative lack of success on the F1 track and loss of prime sponsorship or was it his management style. Dennis begs to differ. In a statement Dennis said,  “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 £850m-a-year business.” It was most likely a combination of both, McLaren have been without a main title sponsor since 2013. Dennis tried to get Chinese investment to buyout Ojjeh and Mumtalakat but various deals fell through at the last minute and Dennis has been looking down the barrel of a gun ever since. Dennis began his career as mechanic in F1 in 1966. He later went on to set up successful Formula 2 and 3 teams before returning to F1 and acquiring McLaren F1 in 1981. He plans to luanch a technology investment fund once his McLaren contract officially expires. His once former friend and business partner, Ojjeh, joined the McLaren board in 1984 and the two built up a formidable enterprise. Dennis will remain on the board of the McLaren Group but his influence is now limited to being a shareholder. Dennis is known to be ruthless, in many ways you have to be to survive in F1 it is the sports modus operandi. He tried to sue one of our colleagues here at DCB once a few years ago. But that’s a long and interesting story. However what Dennis provided most was a vision and philosophy and the ability to move from the blueprint stages to a fully operational business and profitable business. But it’s the vision and philosophy, that attention to the miniature of detail that McLaren will miss the most.  ron-dennis-mclaren-1981-2016
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