McLaren confirms first SUV and £500m UK investment
The £500 million investment, worth roughly $675 million, will fund a new UK assembly plant, expansion of the Composites Technology Centre in Rotherham and full use of the company's recently opened creation centre in Bicester, which covers design, plus its Midlands testing facility. McLaren says the plan allows it to build a complete portfolio around the supercar, with the SUV just the first step in a wider, carefully segmented range aimed at maximising brand value, desirability and client loyalty.
Two new engines and two new transmissions will also be designed and engineered in house, built to support McLaren's hybrid strategy and building on the hybrid technology the company pioneered with the P1.
The investment will create 1,000 direct and indirect jobs within McLaren's operations by 2032 and safeguard existing ones, with potentially up to 3,000 additional jobs across the wider supply chain. The strategy is aimed at far higher profit margins to rival the likes of Ferrari, whose own SUV has transformed that company's finances.
The plan follows a turbulent period. McLaren was acquired last year by Abu Dhabi's CYVN Holdings, which also bought a non-controlling stake in McLaren's Formula One business, and Abu Dhabi's sovereign wealth fund L'IMAD has committed to investing £1.5 billion in McLaren over the next five years. The main shareholder is now the L'IMAD fund. After restructuring, McLaren slashed bloated dealer stocks last year by cutting one of two production shifts at its Woking assembly plant and switched to building cars only when orders are placed, a move designed to stop discounting and protect residual values. Sales fell to around 2,000 cars in 2025, down from just under 3,300 in 2024.
Chief executive Nick Collins told Reuters the investment plan follows that restructuring, though he declined to provide product details or launch dates for the SUV. That leaves plenty of room for speculation: expect a high-performance hybrid SUV aimed squarely at the likes of the Ferrari Purosangue, Lamborghini Urus and Aston Martin DBX, but with McLaren's signature carbonfibre construction and driving dynamics.
The wider industry backdrop is sobering. Nissan is ditching plants, Jaguar Land Rover is cutting staff, and Volkswagen's supervisory board has just approved a turnaround plan with sweeping job cuts. Against that, McLaren's £500 million commitment and 1,000 new UK jobs stand out as a rare expansion story, and a notable endorsement of British high-performance engineering.
For buyers, the implications are longer term. A McLaren SUV would bring the brand to customers who love the badge but want practicality, following the well-trodden path of Porsche's Cayenne and Ferrari's Purosangue. With in-house engines and transmissions arriving alongside, the next generation of McLarens should be more distinctive and more exclusive. The Woking marque is betting that the future of the supercar brand is a broader, more profitable portfolio — and for the first time, it has a plan, a factory and a backer to build it.