British American Tobacco had supported several F1 teams as a sponsor before deciding to own one outright. In 1997 Craig Pollock — who managed 1997 World Champion Jacques Villeneuve — convinced BAT to provide most of the equity to purchase the Tyrrell Formula One team for £30 million. Pollock, Adrian Reynard, and Rick Gorne were minority partners. The deal was announced on 2 December 1997, with the team still running as Tyrrell in 1998 before rebranding as BAR for 1999.
On 23 July 1998 BAR announced the signing of Villeneuve from Williams. He was joined by F1 rookie Ricardo Zonta, with the chassis designed by Reynard Motorsport at the new Brackley factory and powered by Supertec (rebadged Renault) engines. Even before the season began BAR attracted controversy: the team unveiled separate liveries for its two cars — Villeneuve's car in white and red Lucky Strike colours, Zonta's in blue and yellow 555 — which the FIA deemed illegal under rules requiring largely identical liveries. After considerable regulatory wrangling, BAR compromised by painting each side of both cars in one of the two colour schemes. The team adopted the slogan "A tradition of excellence," which observers found ironic given that it had no history at all. Adrian Reynard publicly predicted a race win in the debut season.
The debut year was a disaster. BAR finished without a single Constructors' Championship point, the only team among eleven entrants to fail to score. The car showed pace — Villeneuve briefly ran third at the Spanish Grand Prix ahead of the Ferraris — but suffered chronic reliability. Villeneuve started the season with eleven consecutive retirements before finishing for the first time at Belgium. Ricardo Zonta was injured in practice at Brazil and missed three races, with Mika Salo substituting and delivering the team's best result of seventh at San Marino.
During 1999 BAR announced Honda as its engine supplier from 2000, a deal that brought not just engines but Honda staff based at Brackley and full factory support. Craig Pollock described the 2000 campaign as a chance to "wipe the slate clean." The Honda-powered car proved far more reliable and the team finished fifth in the Constructors' Championship, with a best finish of fourth, though the promised victory still did not come. Villeneuve took two podiums in 2001, and BAR finished sixth.
Pollock resigned at the start of 2002 under pressure from BAT and was replaced by David Richards, whose Prodrive company was awarded a five-year management contract. The season was transitional and BAR dropped to eighth in the standings. For 2003, Jenson Button replaced the outgoing Olivier Panis, and Villeneuve himself was replaced mid-season by Honda-backed Takuma Sato. Button led a race for the first time at the 2003 United States Grand Prix.
The team's peak arrived in 2004. Button accumulated multiple podium finishes and took the team's first pole position at San Marino. BAR finished second in the Constructors' Championship, beaten only by Ferrari. Still no race win came, and a bitter driver contract dispute with Williams over Button — resolved in BAR's favour by the Contract Recognition Board — overshadowed much of the season. In November 2004 Honda purchased 45% of the team, with Richards departing and Nick Fry becoming team principal.
The 2005 season was turbulent. BAR Honda was disqualified from the San Marino Grand Prix after post-race scrutineering found the cars could have raced below the 605 kg minimum weight limit, and was banned for two races including Monaco. The FIA found launch control software present in the cars but lacked evidence it had been used. BAR struggled in the early flyaway races and failed to start the United States Grand Prix due to the tyre dispute affecting Michelin-shod teams. Takuma Sato scored just one point all year and was not retained. Button, however, scored in each of the final ten races and contributed two podiums. In September 2005 Honda purchased the remaining 55% from BAT, completing its ambition to become a full manufacturer team.
BAR tested a modified BAR-Honda 007 chassis in a bid to set a land speed record for a car meeting FIA Formula One regulations, targeting 400 km/h. Driver Alan van der Merwe conducted shakedown runs at Mojave Airport on 5 November 2005, recording passes of 393, 405, 410, and 413 km/h (up to 257 mph). Waterlogging at the intended venue, Bonneville Salt Flats, prevented the official attempt; the chassis was subsequently used by Honda the following year to set a new record.
The team competed as Honda Racing F1 Team from 2006. After three seasons without a win, Honda attempted to sell the team during 2008. A management buyout led by Ross Brawn combined with a Mercedes engine deal produced the remarkable 2009 Brawn GP season: Jenson Button won the Drivers' Championship and the team won the Constructors' title. Mercedes purchased the operation in November 2009, and the entity continues racing as Mercedes-AMG Petronas Formula One Team. British American Tobacco returned to Formula One as a sponsor in 2019, backing McLaren under its A Better Tomorrow campaign for alternative smoking products.
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