Tuesday, October 14, 2014

After 20 years, Petronas conquers Formula One

It's OUR success story, too. Call it vision, perseverance, faith or all of that. After two decades of chasing podiums in F1 circuits around the world. Malaysia's oil corporation Petronas this week attained the ultimate glory of claiming the constructors title - with Mercedes - for the F1 crown. "This is truly a historical milestone for Petronas," says its CEO Shamsul Azhar Abbas h e r e.  
Indeed. For as long as I remember, Petronas has been whipped left, right and centre for its investment in F1, the world's greatest auto racing circuit. Even this blog had suggested back in 2009 that maybe Petronas should have just pulled out like Honda had just done [Petronas should do a Honda, 7/12/2008]. OK, so I wasn't a big F1 fan but even big names like BMW, which was Petroans's partner at one time, turned their backs on the circuit, citing rising costs. Tony Fernandes tried to weave his magic wand in F1 via Lotus only to burn fingers and hands (not neceessarily his own). Proton, the national car, got tangled up in the same misadventure (plus a lawsuit or two with Fernandes, too!).
Shamsul and the Petronas motorsports division should crow about this achievement and share with fellow Malaysians why this is a historical milestone and a smart partnership for the national oil corporation. Hit back at the crtiics. Inspire the rest of us. For this is not just a Petronas success story, it is ours as well. 
p.s. Of course, we couldn't have done it without Dr Mahathir Mohamad, the Petronas advisor. In 1999, when he was Prime Minister, Dr M brought the Formula One to Sepang (and Sepang to the world stage), a move his opponetns deemded as wasteful. Many years later, the sucess of Sepang inspired even our neighbours down south to bid for and stage the first night race ...

34 comments:

Anonymous said...

Hmm....what exactly did Petronas bring to the table, besides funding?

Did it contribute significantly in terms of expertise, innovation and technology?

Today's Singapore Straits Times carried a Times/Reuters report titled "Champions in debt to Brain and Brawn" with the subheading "The real architect of Mercedes' title win is Ross Brawn, who quit F1 earlier this year".

Let's recognise who really contributed what.

Anonymous said...

Bro 9:30am. Should also look at what PETRONAS gains from the series other than advertisement.

Anonymous said...

Anon 930am: Singapore ST will say that bcos they are always 24x7x366 jealous of Malaysia. Regardless if Brawn started it, the thing is he quit halfway and yet Petronas Team carried on to win the coveted title on their own without him. So dont always think bad or poorly of any achievement by a representative of the country. Think positive, smile, be happy and be proud of the country. As a contrast, even Azmin reached his pinnacle in politics after 20 years. Although he is in the opposition, it is history and govt backbenchers will still have to acknowledge his "win". So Anon 930, Stay Calm and Have A Positive Mind.

Anonymous said...

Hmmmm..hai ya Ah Beng..is Nothing more than RnD in lubricant,engine,advert and glory.. <>

Anonymous said...

Haters gonna hate. Lol! Go Malaysia! Leave no one behind, except retards. Lol!

Anonymous said...

Anon 10:48 am

Correction - it's the Mercedes team, not the Petronas team!

And what is the "achievement" of Petronas apart from backing the "right horse" this time around.

The Singapore Straits Times carried the report that came from the Times of London and Reuters.

I know because I read the report myself today.

And what "spinoffs" has Petronas gained from F1, apart from having it's name displayed on the Mercedes F1 cars and on the uniforms (among other sponsors) worn by Hamilton and Rosberg?

Get real, bro.

drMpower said...

4:40.

how about the showcasing of petronas brand and advertisement that in monetary terms, equalled of 2 minutes equalled to RM 500,000. so within 45 minutes of real racing time (already minus tv adverts and all), and 45 minutes of qualifying and practice periods shown on tv, may i value it for you:

2 minutes = RM 500,000
so for 90 minutes = RM 22.5 million
all these for 1 race

so for the whole calendar racing year, 19 for 2004, then advertisement value for petronas is nearly half a billion ringgit.

thats for the races only. so instead of paying half a billion for advertisement, they got it for free. and you know how much petronas gotta pay the team? from available source, its only a pittance 30m euro per year. its a steal.

so did u ever know about deals like this may result in bigger and better stuffs like the petrol company which got its own lubricants, to fill all road cars that produced by the co sponsor?

did u ever realised that at what cost of gaining technology advancement?



u have no idea, kiddo. thats why u should stop saying nonsense like that. for love of god, please stop embarassing urself

Anonymous said...

No one mentioned PETRONAS in the Mercedes link http://www.mercedesamgf1.com/en/news/2014/lewis-wins-russia-seal-constructors-championship/

Anonymous said...

Exactly....what exactly have we gained ? All we did was pump in our Petro Ringgit .

Any technology transfer ? Any marketing gain on any of our product ?

Sometimes I even wonder if the engineers didnt quietly fill with our rival super oil from a hidden oil drum hidden somewhere at the back of the pit, instead of syntium ?..

Jalan Mas Kuning.

Anonymous said...

Anon 440pm. U also get real, bro. Mercedes win also means their partner Petronas also win what? A winner is still the winner by any count! So go and sulk like a spoilt brat if you want but the rest of us are happy with the result. So let us be happy in peace and we leave you to sulk in peace. Shalom.

sam said...

people who hates achievement will never appreciate success. Look around you, will people prosper without effort, will business prosper without marketing, will your children excels without guidance.
Petronas has been recognised worldwide because smart marketing, smart partnership. Brand like Petronas is instantly recognisable. Millions spent on F1 brand promotion has surpassed the investment. The sucess of Petronas is because these effort, among others. It opens up doors for other opportunities. Looks as how far Petronas has evolved. Check out Pertamina, Elf, where are they now?
Wake up, stop whining. Get a book. A business book.

Anonymous said...

what does shell gain from ferrari f1. what does total gain from wrc
what does mobil gain from porsche super cup

and so what does petronas gain from mercedes f1.

intangible, yes. brand, certainly. global presence, absolutely. value, most likely.

cmon orang malaysia. don't just keep on raining on your own party.

i think petronas has brought malaysia forward. perfect? probably not

but at least now you can sell syntium together with the new merc amg gt, just like porsche with mobil 1.

and maybe sell syntium to the africans, europeans, arabs, aussies, chinese, indians, russians, brazilians etc etc.

that is the spin-off. see ?

Anonymous said...

Anon 4.40pm

You're the one who shd get real.

Are you in oil business? Are you ine the business of developing engine for Merc? Are you in the marketing business?

Of course you're not. You're just a shallow minded hater.

Anonymous said...

Datuk, si-Amir from MRT Corp ni macam tak puas hati saja ...

(From is Facebook)

Amir Mahmood Abdul Razak
21 hrs · Kampong Segambut Dalam ·
Would you support it, if, as a measure of reward to Malaysians,
PETRONAS offers a 30 sen discount on their PRIMAX 95 fuel - for a week - as a result of them being part of the winning Constructors Championship for F1?
Mercedes employees worldwide I heard, will get USD 10,000 as a bonus for same reason?
LikeLike · · Share

charleskiwi said...

You have very conveniently failed to mention that after all these years, how come Malaysia is still in deficit and the deficit is getting worse by the days. As a result everyone is now having to pay for it you too are included. And the deficit was started too by this repugnant and avaricious Mahathir amongst many other contentious issues Malaysia.

Just look at the followings carefully :

When a horse mates a donkey a hinny is produced, not a horse nor a donkey. There is no turning the hinny back into a horse or a donkey. However hard one tries to alter the genetic of the hinny, even when you mate the descendants of the hinny with more donkeys or horses. Not even a noble price winner science can alter the DNA of the hinny. The hinny will remain a hinny forever.
Like wise when a tiger mates with a lion you get a tigon and not a tiger nor a lion. Or when a European mates with an Asian an eurasian is borne. The same theory also applies, there is no way anyone can or even a noble prize winning scientist one can change what is created.
Even when you try to change the genetic of the hinny, the tigon or the eurasian with further matings of these descendants nothing or no changes will take place.
What will happen when an Indian mates with a Malay ? A mamak is borne, not an Indian or a Malay but a mamak including the descendants. Even worse when you mate the descendants with that of a Chinese, the off springs have more Chinese figures than the Indian or the Malay figures in them. But according to the Chinese these descendants will never be Chinese but chap chongs.
The same theory also applies to the numerous cross matings between the Arabs, the turkish and the other nationalities with the Malays. The off springs are all chap chongs or half breeds. Therefore it is very sound to say that there are not so many pure Malays in Malaysia, especially those in control of Umno, Why do these half breeds in Umno are clinging on to be Malays, when so much scientific proofs say they are not.

No doubt that must be a real worry to these half breeds and as a result they passed laws to legitimise them to be Malays. One doesn't become a Malay or anyone because of the food they daily take or the clothes they wear, the religion they embrace. You are only borne to be a Malay and nothing will alter that. You can't be a European or a Chinese, or an Indian just because of what you eat or wear or the religion you embrace. Yes you can be an American, a Singaporean or an Australian or even a Malaysia but never be a Malay.
Why do these half breeds are claiming to be Malays, surely it is not because Malay is a proven superior race, but simply one can claim
the many privileges and rights that goes with being Malay. Without being a Malay how else can the repugnant and avaricious Mahathir and his family become what they are to day ?

Don't you think it is time, to overcome the above problem, is to deregister Umno and call it with another name just so the country is not run by pretenders but by true Malays or Malaysians just like the descendant of an African, President Obama who is the president of America !

The said...

/// Brand like Petronas is instantly recognisable. ///

And what does that translate into? Better price for Malaysian oil? Higher petrol subsidy for car owners?

Yes, the world now knows about Petronas. So what?

The real advertising dollar is on Malaysia and Sepang. And that is achieved by Malaysia hosting the F1 races, not by Petronas. Just like Singapore gained tremendously in advertising dollars by hosting the only night race in the world.

Anonymous said...

You must have swapped your brain with donky ass bro ..
Read the umno constitution properly la...
Probably you just came out from DAPig pen and eager beaver to engage the world .

sam said...

Cmon
That 's nothing worse than badmouthing yr own country. Without TDM, Malaysia will not be as prosperous/stable as today. Go live outside for a while. Not as student.Then compare. But not to Singapore. Of course , progress need change., people need change. When we are talking about Petronas, why make so much noise on 20 sen increment. Unless you are driving those petrol guzzling car. Then you don't deserve the subsidies. Jangan salahkan kerajaan sahaja. Cakap biar bertempat...

Anonymous said...

The 11:24 am

Quite right.

How much is Singapore getting in terms of "spinoffs" by hosting the only night race in the F1 calendar?

Without the equivalent of a Petronas in the city-state?

Singapore Airlines has just taken over as the main sponsor of the Singapore F1 race, following on from SingTel.

SIA has the financial resources to be able to afford this. It is already a well-known brand worldwide.

Petronas vs SIA - who commands more brand recognition?

Anonymous said...

waiting...petron eat petronas...ermmm...mahathir idea??

Anonymous said...

wow....thanks for the biology lesson by all means call as well the abolishment of mca mic after all the country is ruled by a coalition of parties called BN in which the race card is played. obama's mother is a caucasian white..wonder why you did not mention that as well

Anonymous said...

PETRONAS gained in two ways, business and brand. The deal with Mercedes F1 carry a lubricant deal with Mercedes for their cars in a few good markets. PETRONAS Syntium and Primax ARE being used in those F1 cars; allowing PETRONAS to develop better fuel and lubricant product.

PETRONAS also need to continue its growth path internationally. Although Malaysia is currently producing oil and gas from its domestic fields, our reserves are small. Oil is only 4 billion barrels from almost 100 fields. Gas is around 100 trillion cubic feet over 100 fields. In Iraq, one of their small fields has 6 billion barrels in one field. In Deepwater Brazil, one field has 6-11 billion barrels of oil in one field.

To get access to these fields, PETRONAS need to be known by many host governments and host national oil company. F1 sponsorship introduce PETRONAS' name globally. It makes it easier for PETRONAS to showcase other technological achievements that they have delivered in their portfolio for them to compete with the Shell, Exxon, Total and the rest.

Nobody seems to begrudge Shell, Mobil, Elf to use this channel. Why do so with PETRONAS? Did Shell sell their petrol and lubricant cheaper?

Let's move away from politics and see things through the business angle.

charleskiwi said...

I forgot to mention that when a person becomes very rich he would suddenly get to be a relative of many including those who he does not know.
Just like Indonesia, what would happen if Indonesia is now a mighty and filthy rich country I am sure all the Malays will want to be known as Indonesians. And do you the real reason why the DPM says he is Malay first and a Malaysian second ? He is very honest to say that both his parents are from different parts of Indonesia and that is the reason why he is a Malay. That is what a Malay is, and he is just being honest and I salute him for his honestly.

Look at Taiwan, for example, only about three decades ago a survey was carried out in the island. More than 98% of the population indicated their resentment to be part of China.
But a recent survey carried out at the beginning of this year over 60% of the population want to be a part of China.
Why the sudden change in the believe ? It must be because China was struggling with everything but less than 30 year later, has now more than a trillion US bond, the largest country in the world. The second largest economy in the world plus their ever growing influences and acceptances in almost all areas.
These must be the reasons why the change in their acceptance to be part of China.
This will be the case if and when Indonesia becomes a mighty country and you can bet Malaysia will want to be a part of Indonesia.

Anonymous said...

Haiya ah beng

Why quote ST. The Singapore Straits Times has been called The SHITTY Times by Singaporeans themselves .......

hahahahahaha

P.S. the red dot copied F1 from which country ????

Anonymous said...

Petronas vs SIA - who commands more brand recognition?

3:29 pm

============

I say PETRONAS definitely. Only ah bengs think SIA is world class coz they need to feel good abt themselves

hahahahaha

Anonymous said...

charleskiwi

ya ya ya

once a coolie kang always a coolie kang, no matter how you pronounce rice as lice, problem as ploblem

so we have flied lice is a ploblem

Anonymous said...

Spot On!Bravo.

Anonymous said...

Well, I am proud that PETRONAS is linked to the F1 champs. It does give them good global branding. No issue with kepuasan hati.

But I think unless my company was a global brand in terms of retail, I would not advertise on that global stage when I cannot derive benefit.

If I was say, (a globally successful) PROTON, then yes, I would pump in the millions to be seen at F1.

But kudos to PETRONAS for their team's win. Many don't realise that in the early years of their sponsorship, the name PETRONAS was not on official name list. Today it is.

The suggestion on FB was just thinking out loud. Would be fun seeing people rush over.

AMIR MAHMOOD RAZAK

Anonymous said...

I wonder what creature mated with what to produce a half-breed called charleskiwi?

Anonymous said...

Let's be fair minded. When someone achieved great achievements, let's just congratulate them. Let's be less partisans.

Both SIA and PETRONAS are global brands in different segments. SIA is about getting air travellers choosing them over others. PETRONAS is about competing with established oil and gas companies for access to acreages. Air travel is about reliability, comfort and price. Access to acreage depends on ability to raise capital, expertise and technologies.

Both companies have reasons to be in F1. Leave it to their decision makers. If we disagree, join them, work hard to be one of their senior management and change the decision.

Anonymous said...

We also like to attribute success to just one person. The truth is sustainable success is achieved through collaboration. Ross Brawn is a great achiever - almost a genius. However, for him to be successful, he needs others - engine makers, fluid makers, telemetry specialists, marketing guys, pit crew, logistics support, etc to work well in tandem.

The next time F1 is run in Malaysia, do take some time to visit the bar at the Sama Sama hotel and ask these crew, after you buy them drinks, to learn about what they do and F1 all about; beyond the glamour and glitters. I found it fascinating.

Having said the above, I must say the Singaporean government is much better at capitalising F1 than our government. For Singapore, hotels are required to raise their hotel rates during the week of F1 and COLLECTED a portion of that increase towards the government fund to run F1. This allow them to continuously invest and upgrade their facilities. The Malaysian government unfortunately is unwilling to do the same.

Anonymous said...

Hahaha....geli otak aku...

Anonymous said...

Petronas is the only company in south east asia listed on fortune 500,sitting at no 69,petronas is even bigger than companies like hyundai,citibank..comparing with SIA which is not even in the list..are out of your mind ?

Anonymous said...

Bro.. Nice write up.
Ramai yg konon nak jd hero tp x tau apa pon pasal Petronas marketing strategy.

Ada yg mengarut sampai ke cerita mamak... Cerita umno etc..

Bila non Malay bercakap penuh kebencian..begitu la jd nya sedangkan ramai non Malay yg ada dlm Petronas sendiri.. Dan mereka juga adalah dalam F1 team yg mengikut dan bekerja dgn team tersebut.

Kalau hujah bijak.. Kenapa tak tgk pada shell jugak yg berdiri di sisi Ferrari.

Kena lebih peka.. Apa itu F1.
Bukan sekadar sukan kereta. More than that ...

Bila ada hati hitam yg busuk.. Macam2 tohmah..

Sapa yg sibuk Sgt pasal Singapore tu.. Ble angkat beg pindah Singapore.

Kesian.. Ic Malaysia tp langsung xda cintakan negara....

Kpd komen2 penuh kebencian... Fokuskan bacaan pada penulisan diberi jgn terlajak kepada topic lain.