Is McLaren about to file for insolvency???
Discussion
TB993tt said:
IMI A said:
Skim read that piece. I know the people behind Carbotech. If perhaps one of the creditors holding security I would not want to be on the wrong side of them. Opportunists a word that springs to mind. Not a good situation. Conversely I see the value of the cars going up if the worst happens.
I forgot Carbotech yes they would need to be onside 
I agree with you about the cars going up if they go bump.
flemke said:
When Mercedes sold their shares back to McLaren in 2010, part of the agreement was that McLaren would continue to receive (but now pay for) a supply of Mercedes engines through 2013, with options to continue as a Mercedes customer for the following two years until the end of 2015. McLaren elected to use the Merc power plants for the first but not the second of those two option years.
According to their own accounts for 2014 the decision to not use the Merc power supply in 2015 cost McLaren £35m in termination costs and restructuring.In the same year they paid Martin Whitmarsh £10m in compensation following his termination.
For me, 2014 was the year the wheels fell off.
ralphrj said:
According to their own accounts for 2014 the decision to not use the Merc power supply in 2015 cost McLaren £35m in termination costs and restructuring.
In the same year they paid Martin Whitmarsh £10m in compensation following his termination.
For me, 2014 was the year the wheels fell off.
Nice work if you can get.In the same year they paid Martin Whitmarsh £10m in compensation following his termination.
For me, 2014 was the year the wheels fell off.
Like some football clubs.
Ferruccio said:
The Bahrainis have a country to sort out.
Never mind an F1 team and small sports car manufacturer.
Well they certainly are a bit....Never mind an F1 team and small sports car manufacturer.
https://www.bloomberg.com/news/articles/2020-07-01...
AndyC_123 said:
Do they make any money in F1?
Does it make any difference in road car sales? Lambo seem to do ok?
Lambo are not really comparable as a car manufacturing company as they have VAG's balance sheet, bargaining power with suppliers, and substantial economies of scale and commonality of parts all working to their advantage. To produce cars retailing at roughly the same price, it probably costs Lambo only two-thirds as much as it does McLaren, if not even less than that.Does it make any difference in road car sales? Lambo seem to do ok?
As to whether McLaren make any money in F1, from approximately 1980 to 2010 they made a ton of money in F1. Racing was in effect their only business and yet it enabled them to build a world-class headquarters, have one of the biggest budgets in racing, and make former mechanic Ron Dennis a multi-multi-millionaire.
In more recent years, however, they have not been a works team, they no longer have had a title sponsor, they lost important secondary sponsors, and their prize money has declined. During this relatively short period, racing has been unprofitable for them.
Under the forthcoming cost cap, it is expected that F1 will be profitable for them.
flemke said:
AndyC_123 said:
Do they make any money in F1?
Does it make any difference in road car sales? Lambo seem to do ok?
Lambo are not really comparable as a car manufacturing company as they have VAG's balance sheet, bargaining power with suppliers, and substantial economies of scale and commonality of parts all working to their advantage. To produce cars retailing at roughly the same price, it probably costs Lambo only two-thirds as much as it does McLaren, if not even less than that.Does it make any difference in road car sales? Lambo seem to do ok?
Simply because he knew he couldn’t afford it.
Ferruccio said:
flemke said:
AndyC_123 said:
Do they make any money in F1?
Does it make any difference in road car sales? Lambo seem to do ok?
Lambo are not really comparable as a car manufacturing company as they have VAG's balance sheet, bargaining power with suppliers, and substantial economies of scale and commonality of parts all working to their advantage. To produce cars retailing at roughly the same price, it probably costs Lambo only two-thirds as much as it does McLaren, if not even less than that.Does it make any difference in road car sales? Lambo seem to do ok?
Simply because he knew he couldn’t afford it.
ThePackMan said:
I wonder what will happen when they burn through the £150M credit line? I’d imagine a business of their size and scale will go through it pretty fast.
If its like any other business they would have needed to submit a credible business plan and forward budget forecast..The recent announcements of cutting their labour force to save costs would have helped in this regard..This £150 million is their last chance saloon IMO..anonymous said:
[redacted]
I'm not sure precisely what point you are addressing. My comment which you have quoted related to whether it was possible for a Formula One racing program to pay for itself. You make a gross generalisation that the group are neither focused enough nor care enough. Perhaps you know something that I don't, but as far as I am aware Zak Brown running the commercial operations and Andreas Seidl running the racing program make an excellent leadership team that certainly could not be described as not caring enough or not being focused enough. Once the cost cap is operative, I fully expect McLaren Racing to be profitable.
flemke said:
I'm not sure precisely what point you are addressing. My comment which you have quoted related to whether it was possible for a Formula One racing program to pay for itself.
You make a gross generalisation that the group are neither focused enough nor care enough. Perhaps you know something that I don't, but as far as I am aware Zak Brown running the commercial operations and Andreas Seidl running the racing program make an excellent leadership team that certainly could not be described as not caring enough or not being focused enough. Once the cost cap is operative, I fully expect McLaren Racing to be profitable.
I think he's referring to the money men/accountants/Bahrain guys, not the upper management.You make a gross generalisation that the group are neither focused enough nor care enough. Perhaps you know something that I don't, but as far as I am aware Zak Brown running the commercial operations and Andreas Seidl running the racing program make an excellent leadership team that certainly could not be described as not caring enough or not being focused enough. Once the cost cap is operative, I fully expect McLaren Racing to be profitable.
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