Tie-up with Mercedes GP - Go, Go, PETRONAS!

With so much negativity hurled at PETRONAS lately, it's good to know that an overwhelming majority of Internet-connected Malaysians are behind the national oil company's move to sponsor the Mercedes GP "Silver Arrow" team, whose principal driver is none other than 7-time F1 champion Michael Schumacher. Check out the reader feedback section at Paultan.org and see for yourself (click on the links below).

The Internet, as we know, is filled with left-wing supporters who are very vocal in expressing their disagreements with the government of Malaysia. When it comes to PETRONAS' tie-up with the Silver Arrow team, such people are generally full of praise.

Perhaps the move by PETRONAS appears left-wing enough that it merits their praise. Or perhaps, they see it for what it really is - a purely commercial or business move on PETRONAS' part to further enhance its brand value through the Silver Arrow tie-up.

By backing a marquee like Mercedes, PETRONAS is enhancing the attractiveness of its line of lubes, particularly the Syntium line. In layman terms, if Syntium is good enough for a Mercedes, then it's more than good enough for any other car.

What's more, with Schumacher adorning the PETRONAS logo, the multi-fold returns on investment for PETRONAS goes almost without saying.

Of course, some people are not too happy. One of them is Alex Yoong who reportedly said that he is ashamed because of the PETRONAS tie-up with Mercedes GP.

Well, he has been bashed left,right and centre for it - I need not add further to the bashing here.

I just want to point out that, as per its mission statement, PETRONAS is a business entity first and foremost. Hence, it needs to do what it must to stay afloat.

At the same time, its mission objective is to contribute to the well-being of the people and nation. It has done this by giving back more than RM471 billion since its incorporation in 1974 - a feat unmatched by other Malaysian corporations.

And it's not doing it simply by taking and selling oil and gas from Malaysian waters - revenue from international operations in 2009 surpassed the RM100 billion mark and continues to be the biggest contributor to PETRONAS' revenue.

Over and above that, PETRONAS is still doing its part to support Malaysia's interest in F1 by sponsoring the Malaysian round. So, no one, not Alex Yoong, not anyone has the right to shame PETRONAS for not sponsoring the 1Malaysia F1 Team (1MF1T).

F1 is a business. If Tony Fernandes et al don't have a profit model for 1MF1T, then they have no business being involved in F1.

If Fernandes is able to pull another rabbit out the hat for 1MF1T the way he did for Air Asia, then he can can come back to PETRONAS in a couple of years to present a tie-up proposal. At the same time, if 1MF1T turns out to be a winner, he wouldn't have to because there would be others for Fernandes to consider.

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Addendum - click on the following links to Paultan.org
http://paultan.org/2009/12/22/alex-yoong-ashamed-with-petronas-over-mercedes-gp-sponsorship-deal/
http://paultan.org/2009/12/23/mercedes-gp-petronas-formula-one-team-official-renderings/#comment-285963