DaimlerChrysler acquires majority holding in Ilmor
DaimlerChrysler AG has announced that it will acquire an additional 30 per cent holding in Northamptonshire-based engine builder Ilmor Engineering Ltd, thus raising its holding from its original 25 to 55 per cent to become the owner of a majority holding, effective from the end of October 2002.
Mario Illien, Liz Morgan, the widow of company co-founder Paul Morgan, and Roger Penske will each hold 15 per cent of the re-apportioned company, as all parties agreed not to disclose the price of the acquisition, which is not material in respect of DaimlerChrysler's financial position.
DaimlerChrysler AG has announced that it will acquire an additional 30 per cent holding in Northamptonshire-based engine builder Ilmor Engineering Ltd, thus raising its holding from its original 25 to 55 per cent to become the owner of a majority holding, effective from the end of October 2002.
Mario Illien, Liz Morgan, the widow of company co-founder Paul Morgan, and Roger Penske will each hold 15 per cent of the re-apportioned company, as all parties agreed not to disclose the price of the acquisition, which is not material in respect of DaimlerChrysler's financial position.
A step-by-step take-over of the remaining shares by DaimlerChrysler by the year 2005 was also agreed. DaimlerChrysler also disclosed that Ilmor Engineering Ltd, since 1993 responsible for the design, development and production of Mercedes-Benz Formula One engines in co-ordination with Mercedes-Benz, will operate under the name Mercedes-Ilmor and will also incorporate the technical motor sport development team in Stuttgart.
"The acquisition of a majority holding in Ilmor and the new structure of Mercedes-Ilmor demonstrate the determination of our company to create even sounder foundations for the activities of Mercedes-Benz in Formula One in the long term," commented board member Prof J?rgen Hubbert, "Following on from the acquisition of a [40 per cent] holding in the TAG McLaren Group two years ago, this is yet another step within the framework of a strategy that is pursued by DaimlerChrysler to strengthen and extend the technological competence of the Mercedes-Benz brand in tough global competition in the future."
The managing director will be Hans-Ulrich Maik, who was successful when responsible for the production of the Mercedes-Benz engines and for the international power train activities for many years. Illien will remain as technical director.
"The creation of Mercedes-Ilmor and the acquisition of a majority holding in Ilmor by DaimlerChrysler are logical steps, following on from nine years of intensive and successful co-operation with Mercedes-Benz," Ilien said, "In future, we will be able to exploit synergies even more effectively. I am happy to see the foundations Paul Morgan and I created less than 20 years ago being further developed through Mercedes-Ilmor and therefore secured for the long term. This demonstrates great confidence in all our staff who will do everything to justify this confidence."
In the last four years, McLaren, Ilmor and Mercedes won the F1 drivers' championship twice and the constructors' championship once. The team also secured the runner-up position twice in the drivers' ranking and three times in the constructors' ranking in the same period. Since the start of the co-operation in 1995, McLaren-Mercedes cars have won 31 grands prix.
"With this step, our Formula One programme is geared up to meet the requirements of the future, also in respect of the changes to the regulations from 2004 on," concluded Norbert Haug, the vice-president of Mercedes-Benz's motorsport activities, "The capabilities of Ilmor will be even more closely linked to the resources of the DaimlerChrysler Group, thereby expanding the range of options for Mercedes-Ilmor. We are confident that with this step we will succeed in creating an even better foundation for a powerful, cost-efficient and highly responsive Formula One engine system."
