McLaren is in for a change of leadership as the company has confirmed what we’ve been expecting: Ron Dennis has been ousted as its chief executive officer.
The announcement made no mention of the impetus for Dennis’ termination, but he has reportedly struggled to retain control of the company he essentially built into what it is today.
Dennis took over McLaren in 1982 when sponsor Marlboro arranged its merger with his Project 4 racing team. That put an end to a tumultuous era for the company that followed founder Bruce McLaren‘s untimely death in 1972.
Notwithstanding a five-year period between 2009 and 2014 (when Dennis stepped back from the company’s day-to-day operations), he lead McLaren ever since, and shepherding its growth from a small racing team into the powerhouse it is today.
The McLaren Technology Group over which Dennis has presided until now includes the Formula One racing team, the GT racing division, the supercar manufacturer, and the applied technologies division – all housed in the state-of-the-art McLaren Technology Centre (and adjoining Production Centre) in Woking, England.
According to the announcement, Dennis technically remains the company’s CEO, but has been stripped of his duties and placed on “garden leave” – a traditional British term used to describe an employee’s transition period. He holds on to his 25-percent stake in the company and his seat on the board.
The remaining shares are held by Mansour Ojjeh (25%) and the government of Bahrain (50%). Dennis is believed to have been attempting (but apparently failed) to raise the capital to secure controlling interest from the other shareholders.
As a result of that failure and his subsequent dismissal, “McLaren Technology Group is now in the process of seeking a new Chief Executive Officer.” Until it signs a suitable replacement, the board’s executive committee (controlled by the Bahraini government) will be calling the shots.
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