McLaren to invest $675 million in UK manufacturing and launch SUV

A 2018 McLaren Senna. File photo.

LONDON — September 16, 2026

British supercar maker McLaren will invest £500 million ($675 million) in its UK manufacturing and engineering operations as it expands its model range with its first SUV. The investment is aimed at increasing sales, creating jobs and improving the company's profit margins.

The plan includes a new assembly plant in the UK, along with the development and production of McLaren's own engines and transmissions. The company expects the investment to create about 1,000 direct and indirect jobs by 2032.

McLaren's expansion follows a restructuring program carried out after Abu Dhabi-based CYVN Holdings acquired the automaker last year. The company's main shareholder is now Abu Dhabi sovereign wealth fund L'IMAD, which has committed £1.5 billion to McLaren over the next five years.

The company reduced production at its Woking, England, factory during its restructuring. It also moved to an order-based production system, making vehicles only after customers place orders in an effort to reduce discounts and protect the value of used McLaren cars.

McLaren sold about 2,000 vehicles in 2025, down from just under 3,300 the previous year. Chief Executive Nick Collins said the company now plans to increase sales by giving customers more choices while maintaining the brand's focus on high-performance vehicles.

The new SUV is expected to become an important part of that strategy, although McLaren has not announced a launch date or provided detailed specifications. Collins said the vehicle would be developed around McLaren's approach to performance and would offer features intended to distinguish it from other luxury SUVs.

Luxury sports-car manufacturers have increasingly turned to SUVs to expand their customer base. Lamborghini's Urus has supported the brand's sales since its launch, while Ferrari has introduced the Purosangue and Bentley's Bentayga has become its best-selling model.

McLaren Chief Operating Officer Michael Straughan said the company needs greater scale to reduce material costs and improve profitability. He said the company believes its margins could eventually reach levels achieved by the strongest performers in the luxury sports-car market.

McLaren has recorded losses for several years, making the planned expansion a significant change in its strategy. The company expects a wider product range to help spread costs across more vehicles and strengthen its financial performance.

The company is also taking a different approach to electric vehicles. While some luxury rivals have introduced fully electric models, Collins said McLaren currently has no plans to launch one because customers are not demanding an electric McLaren.

Collins said the company would consider an electric vehicle if customer demand changes. For now, McLaren is focusing its investment on expanding UK production, developing new models and building a larger business around its traditional performance-car identity.