GM affiliate Holden has had to buy a company which runs Holden Racing Team in a crisis move to ensure three race teams can line-up in touring car championship events, writes Mike Duffy.
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The car giant had to move quickly to seal a deal after receivers were appointed to take charge of the troubled British-based Tom Walkinshaw Racing (TWR) group of companies.
The company is believed to have paid $A20 million for all the shares in TWR Australia to avoid the Holden Racing Team, K-Mart Racing and Team Brock being stalled by liquidation legislation – and unable to race.
The Australian Touring Car Championship is due to begin on Adelaide’s next month. But race cars will take part in support races at next weekend’s Australian Grand Prix in Melbourne.
Holden’s sales and marketing director Ross McKenzie had to fly to London with the company’s legal counsel last weekend to do a deal with PricewaterhouseCoopers, receivers for the debt-ridden TWR group which owns Arrows Formula One team and a web of race and race car engineering companies.
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By GlobalDataBut even though Holden now controls the teams, special dispensation by touring car racing’s ruling body, Team Entrants Group Australia (TEGA) is necessary to allow the cars to race.
TEGA rules stipulate that car manufacturers cannot own Supercar team licences. This is why Holden encouraged the formation of TWR Australia to run Holden Racing Team.
”We met with the TWA receivers and made them an offer which, quite frankly, they couldn’t refuse,” Mr McKenzie said.
”The receivers did not realise the value of the Australian asset and we went armed with a letter of intent to withdraw sponsorship money if a deal could not be finalised immediately – and a highly attractive offer for the Australian subsidiary.
”When we made them aware of all the ramifications of not allowing Holden Racing Team, K-Mark Racing and Team Brock to take part in the Australian Touring Car Championship, they were very professional and very reasonable.”
But Mr McKenzie said a meeting would have to take place with TEGA next week before the three teams could take to the track at the Australian Grand Prix.
TEGA’s management board is made up of two Holden directors and two Ford directors.
”We are confident that good sense will prevail and the three teams will be allowed to take part.”
Mr McKenzie said Holden would give TEGA an undertaking that it would seek to find a buyer for Holden Racing Team.
Mr McKenzie said Holden Special Vehicles – the company which enhances factory Holdens – was owned by a private company owned by Tom Walkinshaw or his family.
”We will be keeping a close eye on developments in England to see whether we have to bid to buy HSV,” he said.
