British American Tobacco is expected to withdraw from Formula One
before 2006, following its admission that it is drawing up an exit
strategy.
BAT has owned a majority stake in the British American Racing (BAR)
Formula One outfit since 1998 and has ploughed an estimated £450m
into the team, but has enjoyed little success on the track.
It has now emerged that Prodrive, the motorsport consultancy recently
brought in to run the team, is reviewing the team's image and the
process through which BAT will leave the sport.
The FIA, world motorsport's governing body, has imposed a deadline of
2006 for tobacco sponsors to leave F1, but BAT is believed to be
planning an earlier exit.
On Tuesday BAT announced a 36% rise in pre-tax profits to £2.07bn
in the year to December 31.
The sharp rise was driven by improved performances from global power
brands such as Lucky Strike and 555, both of which appear on BAR
cars.
"2006 is the agreed timescale to allow for a transition away from
tobacco support for the teams and event organisers with whom we have
contractual agreements. In order to execute a smooth transition, we need
to look at the exit process," said a BAT spokeswoman.
The 2002 Formula One season starts this weekend in Australia.
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