McLaren to open new car plant in rare boost for UK industry
McLaren Automotive Ltd plans to open a new UK factory as the supercar-maker gears up for its first sport utility vehicle, a welcome boost for UK prime minister Andy Burnham just days after Jaguar Land Rover announced thousands of job cuts. The company said it will create 1,000 new jobs by 2032, investing £500 million (€? million) in the additional assembly facility and its headquarters in Surrey, where it makes its sports cars, as well as a carbon-fiber manufacturing site in Sheffield. The location of the new factory is still being finalised, chief executive Nick Collins said in an interview. The news will provide relief for Britain’s beleaguered car industry and follows JLR’s plans to cut 4,000 roles as it tries to stay competitive. Separately, Nissan Motor Co announced Wednesday it’s investing £170 million to build a new hybrid SUV at its Sunderland factory, Britain’s largest car plant. High costs across Europe have piled pressure on the region’s carmakers, but the UK’s steep energy costs have made manufacturing particularly challenging. Burnham is trying to lift employment rates, especially among young people. Lando Norris agrees new deal with McLaren stretching to at least 2030 The investment will “create high-quality apprenticeships, jobs and drive growth far beyond their factory gates”, Burnham said. New Abu Dhabi-based owner L’imad Holding Co is trying to reboot McLaren, which for years has been strapped for cash. The company had to tap its former shareholders for emergency funding on several occasions amid delays to its Artura sportscar. In recent years, it sought other ways to raise funds, including selling assets such as its heritage car collection and its advanced technologies arm, as well as completing a sale and leaseback of it headquarters. L’imad took control of the company recently after Abu Dhabi’s CYVN Holdings LLC transferred ownership to the other state entity, which also now owns Chinese electric-vehicle maker Nio Inc. CYVN had bought McLaren from Bahrain’s Mumtalakat last year. McLaren’s owner paid off its debts, Collins said, as he set about turning the company around, starting with reining in production volumes to match demand. The car industry in Europe is “changing, and the worst thing to do is to be in denial of that and wait for it to come to you”, Collins said. The CEO plans to broaden McLaren’s appeal beyond hardcore racing fans with the company’s first SUV, putting it in competition with the likes of Ferrari and Lamborghini. “It’s very much a performance SUV,” Collins said. “There’s a lot of people who would love to take more than one passenger in their car or use it for different lifestyles or different purposes.” The new model will be the latest in a long line of luxury and sportscar brands to start selling an SUV. “In the way we’re going to do it, there’s absolutely space for another one,” said Collins, who plans to grow in the US, already the company’s largest market. Producing an SUV is a “no-brainer” according to chief operating officer Michael Straughan. “We’re well known for rear-engine, rear-wheel-drive sportscars and supercars, but you’re almost capping what you can produce because of that,” he said. McLaren currently produces roughly 2,200 cars a year. The company looked at building the plant in other European countries, but ultimately decided on the UK. The government isn’t providing financial support as part of the investment, Collins said. McLaren also said it will make its own engines in the future, rather than outsource production. The company is banking on increased consumer demand on the back of the success of the Formula One team. It’s riding high after securing the team title for the past two seasons, with driver Lando Norris winning the driver’s championship last year. - Bloomberg