McLaren, first SUV and new factory in UK

McLaren has announced a £500 million investment to be allocated to its manufacturing and engineering activities in the United Kingdom. The goal is to strengthen industrial capacity and launch new models to increase sales. Among the new features stands its very first SUV, presented as a strategic move to aim for higher profit margins and compete more directly with rivals such as Ferrari.

McLaren prepares the launch of a new SUV

The plan includes a new assembly plant and the in-house development of transmissions and engines. According to the company, it should generate 1,000 total jobs by 2032. In the current market context, the British company links its new growth phase to the choices made in 2025 after the acquisition of CYVN Holdings of Abu Dhabi, which took a stake in the Formula 1 division and led Abu Dhabi to become majority shareholder through IMAD. The latter has committed to investing £1.5 billion in McLaren over the following five years.

Major investment in the UK

From a commercial point of view, McLaren has already begun to correct the excess inventory at dealerships by reducing production to shifts at the Woking plant and moving to a “made-to-order” logic to limit discounts and preserve residual values. Sales in this regard fell to about 2,000 units in 2025 from just under 3,300 in 2024. But management believes that expanding the range, with the SUV as a starting point, is necessary to improve the economic balance and reduce material and production costs. McLaren currently excludes electric vehicles: CEO Nick Collins argues that there is not yet sufficient demand from customers, while acknowledging that the competition is also taking its first steps in electric.

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