We indeed appreciate the fact that Formula One is considered one of the greatest motorsport events in the world today. The popularity of this sporting event has over the years attracted some of the most established automobile brands either as contenders or as partners in one way or the other with one such brand being the BMW brand.
BMW has in the past provided engines for the motorsport event and even partnered with some of the competing brands such as Williams and the Sauber team that was eventually named the BMW Sauber team. Be that as it may, the participation of BMW and a few other established brands is coming to end this season since the German based automobile manufacturer has indicated that it will no longer be an active player in the global motorsport event.
Many of you must be pondering with the question, why would an established car company such as BME dissociate itself from one of the biggest motorsport events in the world? You might not know this but Formula One is considered one of the most expensive sporting events in the world. This implies that participants of the event such as BMW have to part with a lot of money in order for them to be part and parcel of the Formula One family. For instance, BMW had to invest a lot of money in engine technology since Formula One cars feature some of the most advanced automobile engines.
You might be wondering at this point, why then has Formula One remained afloat after all these years? The thing is Formula One has for many years remained a profitable event for all its participants. Be that as it may, the global economic downturn has seen a significant decline in profitability of the event and participants such as BMW have to reconsider their position. This can be underscored by the fact that other manufacturers such as Honda have also cited the poor economic performance as their reason for considering withdrawing from the event.
The Economic Downturn
In addition to the economic downturn, another reason behind BMW’s decision is the poor run that the German based manufacturer has had ever since it decided to actively compete in Formula One. You must appreciate the fact that one of the most significant success determinants for a racing team is its ability to win trophies or at the very least, register impressive finishes. BMW ventured into active racing by taking over the operations of the Sauber team. The new outfit named BMW Sauber managed a rather disappointing run in virtually all its Formula One championship ventures. The overall disappointing run of BMW Sauber is therefore another reason behind the car company’s exit from the event. This is because, BMW cannot rely on its Formula One participation as marketing platform which is essentially one of the main reasons car manufacturers participate in the event. All in all, BMW’s participation in Formula One has thus proved to be a loss making venture on all fronts hence the company’s decision to exit the event.