McLaren confirms SUV amid £500m investment
New facilities will see engines built in-house for the first time, too
It’s been over a year since McLaren Automotive was absorbed into McLaren Group Holdings, an Abu Dhabi-owned venture that also includes Forseven, an EV start-up. In very short order, the boss of the latter, Nick Collins, became CEO, and for a time the firm appeared to be haemorrhaging senior staff and money at an unsustainable rate. ‘A perilous position’ is how Collins described the state of the manufacturer to the FT earlier this year. Now, having previewed the first model of its new era at Pebble Beach, McLaren is keen to explain what its road to full recovery looks like.
For one thing, the SUV that has been widely anticipated for some time, is now confirmed. Not in detail at this stage, but of the ‘new categories’ that McLaren says it will seek to enter, it is the one endorsed by name. For anyone concerned chiefly with the company’s bottom line, the introduction of something to compete with the Lamborghini Urus, Ferrari Purosangue and Aston Martin DBX is long overdue. For anyone concerned with McLaren’s ethos, previously wedded to weight-conscious supercars, the decision is likely to prove more vexing.
Either way, the result (assuming customers approve), is going to mean more volume, hence the announcement of a £500m investment programme aimed at increasing McLaren’s production capacity. The strategy dictates nothing short of ‘a new vehicle assembly facility’, though it also commits to ‘expand operations’ at MPC in Woking and its carbon fibre manufacturing plant near Sheffield. Additionally, the brand points to the new McLaren Creation Centre in Bicester and a vehicle test facility in the Midlands (both conveniently located for new employees who would know how to develop a ‘performance SUV’) as evidence of its integrated approach.
Any new employee can expect to have company when onboarding; McLaren reckons its programme will involve the creation of ‘at least’ 1,000 direct and indirect new jobs across its portfolio by 2032 (no prizes for guessing when it expects the SUV production line to be in full swing then). There might be as many as 3,000 additional roles in the supply chain - though certainly McLaren expects to double its manufacturing workforce in the UK. Music to the ears of the UK Government in the light of JLR’s planned redundancy scheme.
If there is music specifically written for PH ears, it is the pledge to design and build future powertrains in-house. While its long-standing relationship with Ricardo produced a number of first-rate V8s, McLaren’s inability to develop and market its own engines (of varying sizes) was often deemed a weakness when compared to the likes of Ferrari. Without going into any detail about what configuration they might take, the firm suggests it has two new engines and transmissions lined up, and intends to build on its ‘pioneering use of hybrid technology’.
“This investment gives us the platform to grow, develop and build on what makes us distinctive, while investing in the people, technologies and products that will keep us competitive for decades to come,” said Collins. Given that the £500m is attributed to an even larger cash injection by shareholder L’IMAD, a sovereign investor of the Government of Abu Dhabi (as much as two billion dollars over five years has previously been mentioned), it would seem like the manufacturer is now well positioned to turn a corner. Or as Prime Minister Andy Burnham put it: “McLaren Automotive is doubling down on Britain.” Great headline. Now comes the hard part.
Why does McLaren think it will emulate Porsche rather than AM/Lambo/Ferrari?
Be interesting to see how they go from a company building lightweight supercars to building SUV's.
Bit like Lotus really. So are they going down the Chinese EV route?
I would guess the V6 PHEV from the Artura and possibly the option of the same V8 they put in everything else.
https://www.porsche.com/uk/models/cayenne/cayenne-...
https://www.porsche.com/uk/models/cayenne/cayenne-...
https://www.lotuscars.com/en-GB/eletre/models
https://www.mercedes-benz.co.uk/passengercars/mode...
Whether it's "many" is another question.
GT cars aside 911s and Cayman derived cars car be driven as daily drivers very easily. They aren’t intimidating, and they aren’t hard to drive. And they lose that specialness as a result. So a step into a Porsche SUV is quite short.
The other makes I listed (AM, Ferrari, Lambo) retain some degree of intimidation, or specialness or both in their sports and GT offerings. Those are qualities you don’t want in an SUV, and putting it the other way round, you’re unlikely to want an SUB with one of those badges on it to dilute the enjoyment of your sports/GT car with the same badge.
My feelings are that the kind of person who wants/needs a 5 seater/practical comfy fast bit of transport and has a bob or two to throw at it, used to be confined to the Range Rover.
Then over in the States lower echelons of consumer started being able to buy a thing that was of similar visual mass....and before you know it, the mass public started feeling "less than" and at risk from being hit by these things if they stuck to what they were used to.
Obviously marketing a fabulously comfy AND rugged adventurey life helped, so the idea of a boring ordinary 3 box, that has less visual mass just ebbed away, didn't matter how sleek or fast it was, it just wasn't imposing enough.
And I think thats the driver of it all.... being seen as imposing.
It can be dressed up as "I find them better to get in and out of", but ultimately its the feeling that comes about by displaying wealth WITH rarity and drama that appeals I think.
And I'm not saying that as necessarily a bad thing, I see it as human behaviour in the western consumer focused world.
I know for a fact I "feel" better owning a Porsche than than I did with my previous Honda.... I've no shame in that.
Aside from thew relentless march towards taller and heavier cars, what I'm keen to see is how they transition their look on to one.
Putting a 911 face and curves on a boxy van profile I think looks s
t.Putting a Vantage face on a boxy van profile does too
Putting an Aventador face on whatever awful profile the Urus has is unimaginative
Maserati - dull
I really don't like that level of laziness whilst appreciating they have to have brand recognition...
Lotus certainly stepped away from any brand recognition and that hasn't worked, so I see it as very tricky...
Alpine have done a decent job with the A390..ish
Jaguar walked a tricky tightrope quite well
For me only Ferrari have managed it with any real style.... you know what it is and who makes it, yet it looks like nothing else in the stable, and being different hasn't meant rulers, screens, poor surfaces or bad proportion...AND they gave it the V12?!
We've yet to see many dedicated offroad brands branch out into road/sports cars, but I guess Land Rover and Range Rover are pushing that...
It just makes me sad that sports car brands feel the need or actually HAVE to branch out into this sector I think. I miss the world where cars and cultures had their place and stuck to it.... everything is being mashed up to be the same and indistinct....
I'm going for a walk now.
Same with cars, who would have ever expected Ferrari of all people to build an SUV or an electric car yet they've had to diversify to stay in the game and the same for McLaren.
It turns out selling a low number of expensive super/hyper cars can't prop up a company like McLaren
The McLaren group have been / are in Financial trouble : they lost £900 million last year (2025) and £400 million the year prior (2024). That isn't sustainable, even the Abu Dhabi owners can't prop that up, hence why McLaren sold off their MTC Centre and lease it back, and also sold off their Heritage car collection as well.
They don't pay the advertised RRP price as it'll be through a lease (2-5 years), and/or through a business where there are savings on tax.
Also, £100k for a car isn't the 'halo' price it once was. Many cars are in this, or close to this price bracket now, e.g. a BMW M3/4, which are £93k, plus options now.
It turns out selling a low number of expensive super/hyper cars can't prop up a company like McLaren
The McLaren group have been / are in Financial trouble : they lost £900 million last year (2025) and £400 million the year prior (2024). That isn't sustainable, even the Abu Dhabi owners can't prop that up, hence why McLaren sold off their MTC Centre and lease it back, and also sold off their Heritage car collection as well.
Still find it very disappointing that they wound up Forseven and the projects being worked on, but I can see why someone could be convinced that RWD supercars are more exciting!
Gassing Station | General Gassing | Top of Page | What's New | My Stuff