McLaren invests $675 million in UK production and first SUV

British sports car maker McLaren will invest $675 million (over 14.2 billion crowns) in developing production and new models in the UK, including the company's first-ever SUV. The news was reported by Reuters.

McLaren CEO Nick Collins said the investment continues last year's restructuring of the company following its move under the control of Cyvn Holdings. McLaren's main shareholder is now Abu Dhabi's state investment fund, which plans to invest £1.5 billion — more than 42.5 billion crowns — in the brand over five years.

The fresh investment will go toward building an assembly plant in the UK and setting up in-house production of gearboxes and engines. By 2032 the project is expected to create around a thousand jobs.

Expanding the model range is McLaren's way of closing the gap with rivals like Ferrari. The company is betting on a new SUV currently in development. According to chief operating officer Michael Stron, it is precisely this expanded lineup that should bring McLaren's margins up to the level of the segment's most successful players.

The restructuring hasn't been easy for the company: last year sales fell to around two thousand cars, down from 3,300 the year before. Still, McLaren expects the SUV to reverse that trend — following the example of the Lamborghini Urus, which became the brand's sales driver after its 2018 launch, or the Ferrari Purosangue, whose production is nonetheless deliberately limited to preserve exclusivity.

McLaren's investment push comes amid a sweeping overhaul of the entire auto industry: Volkswagen's supervisory board has announced major staff cuts, while Nissan is closing some plants and scrapping upcoming model launches.