Key facts
- McLaren will build an SUV for the first time in its 63-year history.
- The SUV is part of a £500 million investment by new owner CYVN Holdings.
- The investment will create 1,000 new jobs at McLaren.
- A new factory is planned, with Sheffield as the preferred site.
- McLaren Automotive was bought from Mumtalakat by CYVN Holdings last year.
- McLaren has no immediate plans to build an electric vehicle.
McLaren is set to produce its first SUV in its 63-year history as part of a significant investment by its new Abu Dhabi owner, CYVN Holdings. The move is a strategic bet to attract wealthy Formula One fans who may not be in the market for the brand's traditional two-seater sports cars. This initiative is backed by a £500 million investment, which is expected to create 1,000 new jobs and potentially lead to the construction of a new factory, with Sheffield being the preferred location.
Nick Collins, McLaren's chief executive, highlighted the "untapped love" for the brand stemming from its Formula One success, suggesting the SUV would appeal to buyers who find two-seater sports cars limiting, particularly those with children. This venture is a key component of McLaren Automotive's turnaround plan following its acquisition by CYVN Holdings, an investment company owned by the Abu Dhabi government, from the Bahraini sovereign wealth fund Mumtalakat last year.
McLaren has historically focused exclusively on two-seater sports cars, including the iconic McLaren F1 supercar. The company merged with the UK-based electric vehicle startup Forseven Holdings in April, but CEO Collins stated there are no immediate plans for an in-house EV, as customer demand is not present. The new SUV is anticipated to compete with established luxury SUVs like the Bentley Bentayga, Aston Martin DBX, and Lamborghini Urus, with the goal of capturing customers from rival brands. Michael Straughan, McLaren's chief operating officer, believes the new model could double the company's current annual sales of approximately 3,000 cars. He also noted that the new factory, likely in Sheffield, is considered crucial for the company's manufacturing capabilities, though a final decision is pending. The development coincides with a successful period for McLaren Racing, which has recently won Formula One constructors' championships.