McLaren signs innovative sponsorship deal with GSK

FORMULA 1 has long claimed its net impact on the environment is positive through technological developments in street cars. Now this claim is being put to the test in a wider manufacturing context. GSK, one of the world’s largest pharmaceutical companies, has signed a five-year strategic partnership with McLaren Group, parent company of the F1 team in the hope of increasing its efficiency. McLaren will provide specialist advice to boost GSK’s manufacturing performance and drug research and development. Although the arrangement will involve some badging on McLaren cars, the deal is more like a consultancy than a traditional sponsorship. GSK’s CEO Andrew Whitty did the deal personally with McLaren’s Ron Dennis and is confident the partnership will generate a good return. Drug companies have long been able to rely on high margin patented products for their profits but have recently come under pressure as sales have declined. GSK’s approach to McLaren is not unique; rival Astra Zeneca worked with Jaguar Land Rover engineers to improve its processes. The interesting question for the other Formula 1 teams is whether this deal opens the way for a new category of partnership in turn allowing the sport to invest more in engineering research.