BMW has announced that it is to take over the Sauber Formula 1 team and establish its own works squad from 2006.

"For the first time in the history of BMW, we will be entering the Formula 1 contest under the BMW name," announced BMW board member Dr. Burkhard Goschel.

"We will be taking responsibility for the engine, for the chassis, for the entire package.

"It will enable us to demonstrate our competence as a car manufacturer.

"We do not expect to have instant success, but we want to be a world champion in this class."

The new factory team will take over and expand Sauber’s existing Hinwil base.

"I am very happy that I can hand over this team to good hands," said Peter Sauber.

BMW is currently in the middle of a long-term partnership with Williams – a relationship that has turned increasingly sour in recent months.

Dr Goschel said that BMW would be happy to continue supplying engines to Williams in 2006.

“We would be happy if Williams would still use BMW engines next season,” he said.

Williams is understood to have already entered into discussions with other engine suppliers, including Honda and Cosworth.

BMW Motorsport Director Dr. Mario Theissen explained BMW’s belief that it would achieve more success as a full works team than as an engine supplier.

“The decision is based on two insights,” he said.

“Firstly, that the influence of the engine on the winning potential of the overall package has diminished.

“The car, tyres and drivers play a greater role than they used to.

“The second insight is that an optimum overall package can only be achieved with a fully integrated team and coherent processes throughout.

"Over the past few years we have proved that we can produce an excellent F1 engine. Maybe the best, I would say.

"Now we are faced with the more sophisticated task of handling everything else."

BMW initially offered Sauber a straightforward customer engine supply deal for 2006, before seeing the opportunity to take control of and rebrand the team.

The current plan is for the existing Sauber team to remain largely intact, but under the BMW name and management.

The BMW management preferred not to discuss potential drivers at this stage.

The paddock rumour mill has already suggested that current Williams driver Nick Heidfeld would be a strong candidate for a seat with the new team.

------------------------------------------------------------------------

BMW STILL 'HAPPY TO SUPPLY WILLIAMS'

BMW may still supply Williams with engines in 2006 despite taking over Sauber and launching its own works team.

“We would be very happy if Williams used BMW engines for next season and this will the topic of the next discussions that we have,” said BMW Motorsport Director Dr. Mario Theissen.

“Of course Frank Williams has been informed about all the steps that we have taken.”

Williams has used works BMW engines since 2000.

The team has won 10 races in that period, and was a strong contender for the 2003 title with Juan Pablo Montoya.

Both parties expected rather more, however.

The relationship has become particularly tense in recent months, with regular public criticism flying between Williams and BMW.

Dr. Theissen said that the decision to take control of Sauber would not affect BMW’s relationship with Williams during the second half of 2005.

“We want success this year, we want to win races during the entire season,” he said.

Taking total control of Williams was never an option, Dr. Theissen revealed.

“A majority share in Williams has never been discussed,” he said.

Theissen denied that any deal with Williams would now involve a lower engine specification than that used by the works BMW team.

“If we give engines to a second team the engines will have BMW stencilled on them,” he said.

“They won't be second rate or second class engines."

Whether Williams would have to pay a customer rate was also still under discussion.

“We haven't presented a specific offer, we just informed Williams that we would be happy if Williams were to use BMW engines in the next season,” said Theissen.

Williams is understood to have already begun talking to other engine manufacturers.

Honda is willing to supply a second team alongside BAR in 2006, and last week admitted to discussions with Williams.

Cosworth is actively chasing a Williams deal, having been ditched by Red Bull in favour of Ferrari power for next season.