Ron Dennis in legal bid to save McLaren CEO role

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Adam Cooper

The dispute between Ron Dennis and his fellow McLaren Technology Group shareholders has taken a further step with the news that the long time team boss has been in court in London this week in attempt to save his future with the team.

McLaren is co-owned by Dennis (25 percent), Mansour Ojjeh (25 percent) and Bahrain’s Mumtalakat, the country’s sovereign wealth fund (25 percent). The latter pair share similar goals and have been in dispute with Dennis for some time. Dennis was long ago given a deadline to bring new investors to the table.

His partners recently told him that his contract as CEO would not be renewed. A report from the UK’s Sky news said that Dennis went to London’s High Court yesterday and today “in an attempt to secure an injunction against a move to place him on gardening leave until his contract expires in mid-January.” It’s understood that he was not successful.

The report also said that Dennis had last week offered £1.65bn ($2.08bn) in new investment – said to be from China – but that it was not deemed suitable by the other shareholders.

A board meeting is said to be taking place this evening, at which Dennis’s future could be decided.

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Tony DiZinno

Ron Dennis has announced he’ll have to step down as chief executive and chairman at McLaren Technology Group, in a release out on Tuesday.

This will bring to an end a run of more than 35 years at the head of McLaren, after a decision was taken by majority shareholders to place him on gardening leave.

Dennis will remain on the boards of both MTG and McLaren Automotive Limited and a significant shareholder in both, he’s set to launch a new technology investment fund in 2017.

All told though, Dennis expressed regret at the way his time at the top is ending.

Dennis’ statement reads as follows, below:

“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.

“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.

“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 I have been offered in recent years but have been unable to take up while being so committed to the existing business.”