BMW blames environmental issues for decision to quit Formula One

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The news broke at an emergency press conference hosted this morning by the German car manufacturer. The conference was led by BMW's top management, including chairman of the BMW board, Dr Norbert Reithofer; Dr Klaus Draeger, a board member responsible for development; and motorsport director Mario Theissen.

Reithofer said at the conference: "Of course, this was a difficult decision for us. But it's a resolute step in view of our company's strategic realignment.

"Premium will increasingly be defined in terms of sustainability and environmental compatibility. This is an area in which we want to remain in the lead.

"In line with our Strategy Number One, we are continually reviewing all projects and initiatives to check them for future viability and sustainability. Our Formula 1 campaign is thus less a key promoter for us.

Petronas, the Malaysian oil and gas company, is the team's headline sponsor but its partner line-up includes Credit Suisse and Intel.

The car firm's F1 team, BMW Sauber, was hoping to be a contender for this year's F1 world championship, but has fallen short of expectations.

In spite of its failings, Theissen insisted back in February that the team's performance had not affected BMW's commitment to F1.

Draeger acknowledged that the decision to quit was partly based on the BMW team's poor performance this season.

He said: "It only took us three years to establish ourselves as a top team. Unfortunately, we were unable to meet expectations in the current season.

"Nevertheless, our ten years of Formula 1 experience have had a major impact on our development engineers. We have racing to thank for numerous technological innovations as well as the competitive spirit that drives us to develop mass-produced cars."

BMW becomes the second car manufacturer to withdraw from F1 within the last eight months. Honda, which had used its involvement to highlight its own environmental values, announced in December that it was leaving the sport.

The Honda team was subsequently acquired by director Ross Brawn and became Brawn Racing.

**Read Marketing's blog by Gemma Charles on BMW's green "excuses"**