BMW will not compete in Formula 1 in the next season of the sport in order to use the money to invest in the development of new technologies and sustainability projects.
BMW follows Honda who also pulled out of F1 in December 2008.
Dr Norbert Reithofer, chairman of the board of management of BMW, said: "Of course, this was a difficult decision for us, but it's a resolute step in view of our company's strategic realignment.
"Premium will be increasingly defined in terms of sustainability and environmental compatibility. This is an area in which we want to remain in the lead. We are continually reviewing all projects and initiatives to check them for future viability and sustainability. Our Formula One campaign is thus less a key promoter for us."