McLaren denies Ron Dennis demotion rumors

McLaren has denied reports that boss Ron Dennis is being demoted in the wake of the automotive division he heads losing money.

Germany's Auto Motor und Sport broke the news this week that Dennis could be demoted. He is known for shaping McLaren into a motorsports powerhouse, and has spearheaded its automotive division since 2009.

McLaren said in a statement that Dennis is chairman of the McLaren Group racing division and McLaren Automotive, and continues to exercise full voting rights.

"The timing of Ron Dennis's elevation to chairman, whereby he relinquished a purely executive remit, was selected by Ron himself … was confirmed contractually at that time, and, as Ron planned and as the board agreed, came into effect in January of this year," McLaren said in the statement.

McLaren Automotive also said it is on-track to return a profit this year.

Dennis started with McLaren in 1980. In 2009, he stepped down as racing boss and moved over as the leader of McLaren Automotive, amid a lying scandal that tainted the team. Martin Whitmarsh replaced him as CEO of McLaren racing.

McLaren has produced the MP4-12C since 2011, and revealed the McLaren P1 supercar at the Geneva motor show this February.

McLaren Automotive launched the 12C in 2011.

By Greg Kable