McLaren Automotive is preparing to build its first-ever SUV in its 63-year history, betting that the success of its Formula One racing team can attract affluent buyers who do not own its traditional two-seater supercars. According to the company, the upcoming model is backed by a £500m investment from its Abu Dhabi-based owner, CYVN Holdings, which acquired the British carmaker from Bahrain’s sovereign wealth fund Mumtalakat last year.
Investment and Manufacturing Plans at Sheffield
The £500m funding package will also create 1,000 new jobs, adding to McLaren’s existing workforce of 2,500 people, according to company statements. Operating officer Michael Straughan stated that a new factory is likely to be built in Sheffield, calling the location “the jewel in the crown” for the company’s manufacturing capabilities, though a final decision has not yet been finalized. Sheffield currently houses McLaren’s existing carbon-fibre plant, beating out the company’s headquarters in Woking as the preferred site.
Targeting a New Demographic of Luxury Buyers
Chief executive Nick Collins said that recent wins by the McLaren racing team have created an “untapped love” for the brand among consumers who have never purchased its road cars. The company currently produces about 3,000 cars a year, but Straughan noted that he could “quite easily see us doubling” those sales figures through the introduction of the new SUV. Collins explained that two-seater sports cars present lifestyle limitations for family buyers, noting, “It’s quite difficult if you have to decide which one of your kids you want to leave behind at home.”
Did you know? McLaren Automotive has operated as a dedicated road carmaker since 2010, following decades focused primarily on racing cars and the iconic McLaren F1 supercar of the 1990s.
Market Competition and EV Strategy
While the yet-unnamed SUV does not have a confirmed price tag, executives expect it to compete directly with high-end luxury models such as the Bentley Bentayga, Aston Martin DBX, and Lamborghini Urus, all of which start above £200,000. Despite a UK government mandate requiring all new cars to be zero-emission by 2035, Collins confirmed that McLaren has no immediate plans to build an electric vehicle. “[Customers] are not asking us, and we’re not doing one,” Collins said, following the company’s merger with EV startup Forseven Holdings last April.
Frequently Asked Questions
When was McLaren founded?
The company was founded in 1963 by racing driver Bruce McLaren.
Who owns McLaren Automotive?
McLaren Automotive was bought last year by CYVN Holdings, an Abu Dhabi government-owned investment company, though Mumtalakat retains majority control of sister company McLaren Racing.
Where will the new McLaren SUV be built?
Sheffield is understood to be the preferred site for a new factory funded by the recent £500m investment, though no final decision has been made.
What cars will the new McLaren SUV compete against?
Executives expect the vehicle to compete with the Bentley Bentayga, Aston Martin DBX, and Lamborghini Urus.
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