McLaren refusing to supply independents

[Oaky]

There was a post removed last night that said with confidence who TT is, at least in the opinion of the author. It surprised me and I’m disinclined to believe it - as the poster removed it within 10 minutes perhaps someone corrected him privately.

[R8Reece]

Thorney said:

No.

Mmmm, think we’ve got to the bottom of that one.

[TP321]

So what is the cost differential between the Thorney warranty v McLaren warranty?

[Guyr]

I've been reading this thread with some amusement, especially when people question the risk of buying a warranty from Thorney, when:

Net Assets at last published accounts:

McLaren Group -£379m
Thorney Ltd +£579k

Last Year Increase in Retained P&L:

McLaren Group -£638m
Thorney +£190k

So basically Thorney is solvent and profitable, whereas McLaren doesn't exactly look as financially stable.

[Taffy66]

Guyr said:

I've been reading this thread with some amusement, especially when people question the risk of buying a warranty from Thorney, when:

Net Assets at last published accounts:

McLaren Group -£379m
Thorney Ltd +£579k

Last Year Increase in Retained P&L:

McLaren Group -£638m
Thorney +£190k

So basically Thorney is solvent and profitable, whereas McLaren doesn't exactly look as financially stable.

How have McLaren Group avoided bankruptcy is a mystery to me. As you say Thorney's financial strength is quite the opposite and seem to be running a very tight ship. Maybe McLaren should offer John Thorney the position of their Chief Executive to steer the mothership back on an even course.

[MikeF86]

Taffy66 said:

How have McLaren Group avoided bankruptcy is a mystery to me. As you say Thorney's financial strength is quite the opposite and seem to be running a very tight ship. Maybe McLaren should offer John Thorney the position of their Chief Executive to steer the mothership back on an even course.

Christ!! Could you imagine his FB posts then!!!

[RSbandit]

TT so reminiscent of RL and WW, every thread turned into a stshow if that muppet was involved...similar story here. Tbh if I ever get into a super series then the Thorney warranty will be a consideration for sure.

[Thorney]

HA.

I've been self employed for 20+ years now, I am unemployable!

I do think McLaren are fixable, but tbh it needs a culture change there which isnt easy to affect, they have the capacity to be really great, I really do think that but their in built arrogance is a constant hindrance to them in everything they do, just ask their suppliers, dealers, press, anyone it a millstone for them.

[Thorney]

TP321 said:

So what is the cost differential between the Thorney warranty v McLaren warranty?

Details are here:

https://www.thorneymotorsport.co.uk/mclaren-warran...

But cost is all other models £2850, but 720 is £3150 and 675LT is £3450, these are higher just because parts prices are higher, not that they go wrong more.

McLaren extended warranty range in price on model and age but its from £3400 to £5400 in that sort of range.

[Desert Dragon]

I believe they keep on financing Mcl with expensive debt? Pesky facts GuyR and if the worst ever happens Thorney become invaluable to the older Mcl and the newer stuff too. Where is TT when we need a financial expert?

[Thorney]

MikeF86 said:

Christ!! Could you imagine his FB posts then!!!

I certainly dont think I could toe a company line!

[R8Reece]

SSO, a PH member, recently posted a blog on their financial status - 6 to 12 months ago it was looking dire, now it’s looking a little more Rosie but a long way to go.

https://karenable.com/mclarens-1st-half-2021-resul...

[Taffy66]

R8Reece said:

SSO, a PH member, recently posted a blog on their financial status - 6 to 12 months ago it was looking dire, now it’s looking a little more Rosie but a long way to go.

https://karenable.com/mclarens-1st-half-2021-resul...

You mean throwing good money after bad ! They are still burning cash at a rate only the UK Government could comprehend. Trick of running any successful business is to manage cash flow and ensure its a positive figure at year end, otherwise eventually you'll run out of it.
Turnover is vanity, profit is sanity but CASH is King.

[Desert Dragon]

^^^sort of. You can not think straight line when valuing and running a luxury brand in its infancy really. I can see Mcl becoming a Porsche, Ferrari or Gucci lifestyle type brand easy. I have never believed in planes , trains and automobiles but as a brand its exciting. I think Paul Walsh a stellar appointment. He needs someone alongside him with a better contact book than him though as stage 1 is that balance sheet needs sorting and company morale restored. Capitalise all that debt from the vultures. Every last penny! Do a T.50 type manual V8 normally aspirated. Charge crazy money £2m - £4m more the better. 500 cars. Do a race series for super rich v T.50. Easy

[Taffy66]

Desert Dragon you've just ousted John Thorney as my number choice for CEO of McLaren.. Please submit your CV and all pertinent qualifications at your earliest convenience.

[Desert Dragon]

Hahaha i think they have an amazing leader in Paul. He is a very serious guy and good operator friends tell me. Dealing with bondholders who do not understand their bonds are effectively equity is going to be a difficult chat over next 7 months. Rather Paul than me

[Ferruccio]

Desert Dragon said:

Hahaha i think they have an amazing leader in Paul. He is a very serious guy and good operator friends tell me. Dealing with bondholders who do not understand their bonds are effectively equity is going to be a difficult chat over next 7 months. Rather Paul than me

Bond holders know exactly what they hold, where they sit in the pecking order in an insolvency, and what they trade at.

They are able to exert a lot of leverage, including potential debt equity swaps, especially in businesses that continue to be cash flow negative, so are never far away from having to ask for more please, sir.

[Desert Dragon]

If I was bondholder i'd probably just want my money back!

[r o n n i e]

Taffy66 said:

Guyr said:

I've been reading this thread with some amusement, especially when people question the risk of buying a warranty from Thorney, when:

Net Assets at last published accounts:

McLaren Group -£379m
Thorney Ltd +£579k

Last Year Increase in Retained P&L:

McLaren Group -£638m
Thorney +£190k

So basically Thorney is solvent and profitable, whereas McLaren doesn't exactly look as financially stable.

How have McLaren Group avoided bankruptcy is a mystery to me. As you say Thorney's financial strength is quite the opposite and seem to be running a very tight ship. Maybe McLaren should offer John Thorney the position of their Chief Executive to steer the mothership back on an even course.

No mystery, it’s called Bahrain Mumtalakat Holding Company.

This is the sovereign wealth fund of the government of the Kingdom of Bahrain. They have very deep pockets and ability to get finance for Mclaren.

It’s a bit like how PSG, without support of Qatar are financially a “small club” yet can now run massive “debts” buying up / paying the likes of Messi, Mbappe, Neymar, etc, etc.

[Northernboy]

Swift93 said:

OMG, put this thread out of its misery. BTW, I love my McLaren and am okay with paying for the extended warranty. Hobbies are expensive.

I’m not, they are refusing to honour mine, so it seems like pretty poor value for £5,500.