Mercedes Formula One chief Nick Fry quits board

Mercedes Formula One team's chief executive, Nick Fry, has resigned from its board.

Company records show that Fry, who had been a director since 2002 and CEO since 2004, quit on 26 January after Mercedes and Abu Dhabi's Aabar investment fund took a majority stake in the team, which was known as Brawn GP last year.

Fry will remain as chief executive of Mercedes-Benz Grand Prix, the company which runs the team, even though he will have no say at board meetings.

Aabar bought a 30 per cent stake in the F1 team in November, with Mercedes taking 45.1 per cent. The remaining 24.9 per cent is split between its former owners including Fry and team principal Ross Brawn, who led a management buy-out from Honda in March last year.

Last year Brawn won the F1 championship with British driver Jenson Button, and former champion Michael Schumacher has returned to the sport as the team's lead driver.

All of the company's former directors, except for Brawn, resigned on the same day as Fry and were replaced with representatives of Mercedes and Aabar.

Mercedes has come under fire for buying into the team immediately after selling its 40 per cent share in rival McLaren.

"The staff would have understood better if Mercedes had withdrawn from the expensive F1 business altogether," said Erich Klemm, works council chairman of Mercedes's parent Daimler.

"In these economically difficult times, the company should invest in better marketing of its real cars."

The company's Articles of Association state that only the directors can vote on proposals at board meetings. A Mercedes spokeswoman confirmed that "Nick Fry is an observer but does not have a vote".

She said the day-to-day operation and management of the team was carried out by a committee, which includes Fry, although "certain significant decisions are reserved for the board".