BMW to quit F1

The Munich carmaker's abrupt decision, after a dismal season on the track and with the industry in crisis, leaves the glamour sport with just four manufacturers: Fiat-owned Ferrari, McLaren's partners Mercedes, Renault and Toyota.

However, three new teams are due to enter next year with others on standby.

"The BMW Group will not continue its Formula One campaign after the end of the 2009 season," the Munich carmaker stated.

"Resources freed up as a result are to be dedicated to the development of new drive technologies and projects in the field of sustainability.

"BMW will continue to be actively involved in other motorsports series."

Team boss Mario Theissen said the natural scenario would be for a partner to take over the team that BMW bought from its Swiss founder Peter Sauber in 2005.

BMW's exit is the first prominent withdrawal from the series since Honda quit in December due to tough business conditions.

That team was resurrected as Brawn GP, the current championship leaders who now use Mercedes engines.

BMW's decision, taken at a board meeting only on Tuesday, came just as the teams were on the verge of signing a new commercial agreement that would have committed them to at least the end of 2012.

It also follows a standoff between the governing FIA and eight of the teams that nearly led to a breakaway championship, plunging the sport into its biggest crisis in 60 years.

"Of course, this was a difficult decision for us. But it's a resolute step in view of our company's strategic realignment," said board of management chairman Norbert Reithofer.

The departure ends the carmaker's hopes of winning a title with their own team.

The carmaker decided in mid-2005 that supplying engines to former champions Williams was not enough and bought a majority stake in Swiss-based Sauber, renaming the team BMW-Sauber.

They won their first race last season when Poland's Robert Kubica triumphed in Canada, and challenged for both titles.

This season, however, they have scored just eight points in 10 races and are eighth overall.

"It only took us three years to establish ourselves as a top team... unfortunately, we were unable to meet expectations in the current season," said Klaus Draeger, board member for development.

BMW have not supplied engines to any other team and Draeger said they would not do that in future either. He could not rule out redundancies.

"We will develop and assess various scenarios and do our best to find a solution for the employees in Hinwil and the staff members involved in the Formula One project in Munich," he said.

"We are aware of the responsibility we shoulder and will inform the staff as soon as we can make a clear statement."

The team's poor showing at the Hungarian Grand Prix on Sunday was their third race in a row without a point scored.

"Recently when I spoke to Mario Theissen, he said they had three years to win the World Championship," Formula One supremo Bernie Ecclestone told the BBC.

"That's what he wanted to do and he was quite confident they would. But it appears it's not quite been like that, so perhaps that's why they've (chosen) to stop."