McLaren stalwart Ron Dennis has been forced out from his role as CEO of the Technology Group.
It was reported last week that unrest in the boardroom over the past month had come to a head following a Chinese-backed bid by Dennis to acquire complete control of the McLaren company.
Representatives for the majority shareholder, Bahraini wealth fund Mumtalakat, and Mansour Ojjeh immediately rejected the offer and moved to place Dennis on gardening leave until his current contract expires at the end of the year.
The 69-year-old was at the High Court in London last weekend in an effort to secure an injunction against the moves, however, it has now failed.
The decision will bring to an end a 36-year involvement with the team, though Dennis will remain on the boards of both McLaren Automotive, their road car division, and the McLaren Technology Group as well as maintain his shareholding.
In a statement, he was as outspoken as always believing the decision of the majority shareholders could be harmful to McLaren.
“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,” he said.
“Despite the strong warnings from the rest of the management team about the potential consequences of their actions on the business.”
He also indicated his surprise at the response of his fellow shareholders, claiming nothing had really changed from previous business talks.
“The grounds they have stated are entirely spurious,” he said referring to the reasons why he has forced out.
“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 a £850 million a year business.”
While he will step down from his day-to-day duties as part of the McLaren Group, Dennis did say he would continue to use his remaining power to ensure the company remained on a path he sees as beneficial.
“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,” he claimed.
“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 concluded the statement by saying he now plans to start a technology investment fund of his own which he says was an avenue he had to turn down while fulfilling his roles at McLaren.
The situation is likely to have little impact on the F1 team operation with Dennis holding more of an advisory role as Eric Boullier continues as team principal and Jost Capito settles in after becoming CEO in September.
