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McLaren is seeking a partnership to enhance its profitability, a goal that has eluded the British automaker for several years. The company is shifting its focus from volume to value and is considering the introduction of a new “lifestyle-oriented” product, possibly a four-seater sports car or SUV. However, achieving this ambition will require external assistance.
In an interview with Automotive News, McLaren CEO Michael Leiters discussed the company’s strategy for boosting revenue. Since joining McLaren in 2022, he has identified a major hurdle—a complex equity structure—that has now been resolved, following Mumtalakat, a Bahrain-based sovereign wealth fund, taking full control of the company in March.
“Sovereign wealth funds typically do not seek to fully own an automotive company,” Leiters noted. “They prefer to be significant investors. A financial or technology partner would be beneficial in fully unlocking our potential.”
Leiters emphasized that realizing this “full potential” would necessitate additional outside support. While McLaren could remain entirely independent and focus on supercar production, he acknowledged that prices could only be raised through scarcity and exclusivity, as consumers are unwilling to pay premium prices for commonplace vehicles. Currently, the average price of a McLaren stands at approximately $310,000 (£240,000).
To increase its profitability, McLaren will likely need to broaden its vehicle lineup, potentially introducing another high-performance SUV for wealthy customers, a two-door, 2+2 grand touring sports car, or perhaps both options. However, the brand is reluctant to navigate this path solo.
“This requires significant investment, and it’s not just about the capital,” said Leiters. “Partnering with someone who already has access to platforms or technologies can enhance profitability.”
Before entering into partnerships, Leiters has specific criteria in mind: he seeks a long-term ally with expertise in automotive technologies who can also delve into aerodynamics and carbon fiber. Moreover, potential partners should not be looking for a project to “fix.”
“I want to manage our own vehicle dynamics, lightweighting, and aerodynamics,” Leiters stated. “Whatever we produce will stay true to the McLaren brand.”
Leiters is clear about his expectations: potential partners must support his vision without undermining it. Who might fit this description? Having previously worked at Ferrari and Porsche, Leiters is aware of their performance credentials, yet he questions how much leeway they would grant another performance brand in terms of dynamics and tuning. He is also open to collaborating with Chinese manufacturers, noting the impressive developments in the industry over the past five years.
Such a partnership with a Chinese brand could prove advantageous. Many Chinese manufacturers have established reputations for producing cost-effective vehicles with advanced technologies. Aligning with the prestigious McLaren name could enhance the profile of any Chinese partner. Geely is one possibility, though it already has Lotus in its portfolio. Major automakers such as BYD and Dongfeng may also consider diversifying beyond the mass market, with BYD already having introduced its own electric supercar.
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