BMW have issued a statement this morning that they will no longer continue in Formula One following the completion of this season.

"Of course, this was a difficult decision for us. But it’s a resolute step in view of our company's strategic realignment," explained Dr. Norbert Reithofer, Chairman of the Board of Management of BMW AG. "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 One campaign is thus less a key promoter for us. Mario Theissen has been in charge of our motor sports program since 1999. We have scored a large number of successes in this period, including some in Formula One racing. I would like to express my sincere gratitude to Mario Theissen and his team for this," said, Reithofer.

Dr. Klaus Draeger, the member of the Board of Management responsible for development, said: "It only took us three years to establish ourselves as a top team with the BMW Sauber F1 Team. Unfortunately, we were unable to meet expectations in the current season. Nevertheless, our ten years of Formula One 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." Possible redundancies in Munich and Hinwil cannot be quantified at present. Says Draeger: "Since we only made this decision yesterday, we cannot provide any more precise information. 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. We are aware of the responsibility we shoulder and will inform the staff as soon as we can make a clear statement."

Says BMW Motorsport director Dr. Mario Theissen: "Of course, we, the employees in Hinwil and Munich, would all have liked to continue this ambitious campaign and show that this season was just a hiccup following three successful years. But I can understand why this decision was made from a corporate perspective. We will now focus sharply on the remaining races and demonstrate our fighting spirit and put in a good result as we bid farewell to Formula One racing."

With the new Concorde Agreement due to be signed within days they had to make a decision now or they would be tied to F1 legally until 2012.

Could we see them followed out of F1 by Renault or Toyota or both?

Sir Frank Williams must be a happy man that he said No to BMW when they wanted to buy a majority share in his team and then went off and bought Sauber instead.

Williams are at the front end of the grid and BMW are at the back end -- if BMW had stayed with the agreement with Williams they would by now be race winners on a regular basis in my opinion.

It's a shame that BMW will pull out of F1 at the end of the season As F1 hasn't got enough trouble it would be bad if Toyota & Renault both go.

Yup!

The FiA are blaming FOTA for resisting the swinging cost cutting that they wanted to bring in.

FOTA are suggesting 3 car teams in the future.

The Formula One Teams' Association (FOTA) has vowed to do all it can to help secure a future for the BMW Sauber team, following its parent company's decision to quit the sport.

Just as FOTA moved to help keep Brawn GP on the grid after Honda withdrew from F1 last December, the organisation's secretary general Simone Perillo said on Wednesday that the teams' body had held immediate talks to confirm its support for the Hinwil-based operation.

"FOTA Teams have immediately consulted each other and are ready to assure all the necessary support to the Swiss-based team, whose membership in the association is confirmed, to continue its involvement in the F1 Sport," said Perillo.

A spokesman from Toyota Motor Corporation said their situation remained unchanged: "Through cost reduction we will continue our Formula One activities."

Thats good news then.

What's going on with team GBR?
Will they be running this season?

What in F1?

Who knows which team will be on the starting grid -- with TT a little strapped for cash I doubt he wants to finance any team this season.