McLaren Automotive is pivoting toward profitability after years of losses, with new ownership committing £1.5 billion in investment to modernize operations and expand beyond its supercar roots. The Abu Dhabi-backed overhaul marks the fourth leader in as many years for the company, following the formation of McLaren Automotive in 2010. Nick Collins, who took the helm in May 2025, emphasized the brand’s untapped potential during an interview with CAR ahead of Prime Minister Andy Burnham’s visit to McLaren’s Woking headquarters.
Shift to SUV and Adjacent Markets
Collins highlighted the McLaren SUV as a cornerstone of the turnaround strategy, signaling a departure from the brand’s traditional stance against SUV development. For years, McLaren resisted such models due to perceived misalignment with its supercar ethos and lack of shared components. Ferrari’s Purosangue and Aston Martin’s DBX followed suit, prompting Collins to advocate for “adjacent segments” to diversify revenue streams. The SUV will be hybrid-powered and built in a new location, diverging from the carbonfibre tub approach of current models like the Artura and 750S.
“We immediately realigned our production to the underlying demand, so that there’s always more demand than there is availability,” Collins said. This strategy aims to stabilize resale values, a critical factor for McLaren’s customer base, which prioritizes both performance and exclusivity. By curbing unprofitable sales pushes, the company reduced its annual output from 4,806 units in 2018 to approximately 2,000 in recent years, ending a cumulative £1.6 billion loss period between 2020 and 2024.
Production Overhaul and Engine Development
The investment will modernize McLaren’s Production Centre (MPC) in Woking, addressing inefficiencies that longtime chief production officer Matt Walton described as detracting from operational flow. “In many ways, this was a showroom,” Walton noted, explaining that aesthetic priorities often clashed with lean manufacturing principles. Changes include relocating parts closer to workstations and introducing robotics to the body and paint shops. Currently relying on manual painting, the MPC will deploy robots to improve quality and reduce build time per station from 41 to 25 minutes. Automation upgrades aim to cut costs without compromising the precision synonymous with McLaren’s craftsmanship.
Simultaneously, McLaren is bringing engine production in-house, developing two new engine families to replace its reliance on supplier Ricardo for V6 and V8 units. “An engine defines a car to a large extent,” Collins said, showing the strategic shift toward vertical integration. The McLaren Composites Technology facility in Rotherham, which supplies carbonfibre tubs for the Artura, will also expand to support future models, including the next iteration of the 750S. Collins promised a new model, including special editions, every six months. How this plays out remains to be seen.
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Yet the Middle Eastern sovereign fund backing the company has signaled patience, with investments spread through 2032. Collins acknowledged that while the company has improved quality through data-driven problem-solving, success ultimately depends on delivering an experience that resonates with buyers seeking both performance and belonging.
F1 Team’s Role in Brand Revival
McLaren’s Formula 1 team has also gained momentum, contributing to a renewed sense of optimism. The team’s improved performance aligns with the car company’s broader strategy to restore brand prestige. “Customers are looking for experience,” Collins noted, highlighting the desire for a sense of belonging and community. The F1 team’s success reinforces McLaren’s identity as a marque synonymous with racing excellence, which resonates with buyers seeking both performance and exclusivity.