Key facts
- McLaren Automotive will create 1,000 new jobs in the UK.
- The investment totals £450 million and will be used for its technology centre.
- McLaren merged with UK electric vehicle startup Forseven Holdings.
- Jaguar Land Rover will cut 4,000 jobs over the next two years.
- CYVN Holdings plans to invest $2 billion in McLaren over five years.
McLaren Automotive, the British supercar manufacturer, is set to create 1,000 new jobs in the UK as part of a significant £450 million investment in its technology centre located in Woking. This move is a welcome development for the UK's automotive sector, which has recently seen contrasting news from competitors.
The investment by McLaren, which recently merged with premium UK electric vehicle startup Forseven Holdings, aims to bolster its technological capabilities. The company currently employs 2,500 staff, and the new roles will encompass both direct and indirect positions.
This announcement comes shortly after Jaguar Land Rover revealed plans to eliminate 4,000 jobs over the next two years. Jaguar Land Rover is undergoing restructuring to address financial challenges, including falling sales, the impact of tariffs, and the aftermath of a cyber-attack. The majority of these cuts will affect salaried and management employees within its UK workforce of 34,000.
Last year, CYVN Holdings, an investment company owned by the Abu Dhabi government, acquired McLaren’s automotive business from Bahraini sovereign wealth fund Mumtalakat. CYVN has committed to investing $2 billion (£1.4 billion) over the next five years to support the growth of the loss-making McLaren group.
European carmakers are facing intense competition from Chinese manufacturers like BYD and Chery, who have experienced substantial sales growth. Volkswagen recently announced its intention to reduce its global workforce by 100,000 by 2030 and halve the number of models it produces. Additionally, UK carmakers will face a 10% tariff on electric vehicles exported to the EU starting early next year, and UK-made vehicles will not qualify for "made in Europe" subsidies under current proposals.