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McLaren to break even ahead of expansion


©Bloomberg
McLaren P1
British supercar manufacturer McLaren will break even this year ahead of an expansion drive into Asia and higher-volume segments as it aims to more than double its annual sales.

The carmaker, famous for its million-dollar sports cars such as the P1, quadrupled its sales last year and is betting on Chinese demand to spearhead an increase in sales to 4,000 by mid-decade.

McLaren Automotive, part of a group that includes the storied McLaren Formula 1 racing team, will launch a less expensive sports car in 2015, its chief executive said, and two new models each year from 2016 onwards.

“I expect about 1,500 [sales] this year and next year, and then after we get P13, around 4,000 cars,” said Mike Flewitt, referring to the new, lower-cost model in development.

Despite a recent slowdown in economic growth and the country’s car market, mainland China has become key for rival luxury marques such as Ferrari and Lamborghini. The country is expected to overtake the US as the biggest premium car market by the end of the decade.

“The indications are that the aggressive growth there is tapering off . . . But even with the reduced growth, there is a lot of opportunities for us in China,” said Mr Flewitt. “I don’t feel that we are behind the curve . . . it will continue to develop.”

McLaren entered China this month with three dealerships. The country is expected to account for 10 per cent of McLaren’s sales next year, or about 150 vehicles, while the company sees no growth in Europe, mired in the biggest car sales declines for two decades, until at least 2019.

“I wouldn’t be surprised if we end up with more than a third [of sales] in Asia,” the chief executive said in an interview. “I wouldn’t be surprised if it was 40, 20, 40” he said, referring to sales percentages in North America, Europe and Asia in the medium-term.

McLaren’s earnings before interest, taxation, amortisation and deprecation was just over £7m in 2012, according to documents seen by the Financial Times, against a loss of £53m in 2011, thanks to an almost 300 per cent increase in revenue to £266m.

The Woking-based manufacturer posted an operating loss of £10.9m last year, down from £59.1m in 2011, which Mr Flewitt blamed on heavy investment in new products.

“We’re bang on track to break even this year,” Mr Flewitt told the FT in an interview.

McLaren’s rapid sales growth is part of a resurgence in the UK car industry, written off at the turn of the millennium but now roaring back as a global leader in high-end manufacturing.

McLaren is spending £70m a year on research and development to bring out new models. The P13 will cost roughly two-thirds the price of its MP4-12C – roughly £110,000 – Mr Flewitt said.

But the carmaker has no plans to follow fellow UK luxury marques Bentley and Jaguar into selling SUVs.

It’s not the right time to be considering that,” Mr Flewitt said. “McLaren needs the global audience to understand our brand, so we need to be consistent in what we build.”
 

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Interesting and no surprises..........wonder if the P13 price includes tax? Also it indicates annual volume of 2500 units ........1000 units each for USA and China, plus 500 for Europe sounds doable.

Also it confirms the P13 will need to be revealed next year to build the order book for 2015 sales.
 

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2500 AT 110K should not be a problem imo,its going to have CF and style and be cheaper than a 911 turbo,so it doesnt have to have a turbos performance,somewhere in between a standard 911 should be good enough,there should easily be enough customers around the world who want to be different but still want a world class brand,i would put money on it !!
 

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McLaren to break even ahead of expansion

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McLaren Automotive, part of a group that includes the storied McLaren Formula 1 racing team, will launch a less expensive sports car in 2015, its chief executive said, and two new models each year from 2016 onwards.
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2 models a year from 2016? Have to say.. I somewhat fail to see how they are going to manage that even allowing for calling a convertible version of a car a new model.
 

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2 models a year from 2016? Have to say.. I somewhat fail to see how they are going to manage that even allowing for calling a convertible version of a car a new model.

They may rebadge the lightweight Alfa Romeo 4C:eek:
 

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2 models a year from 2016? Have to say.. I somewhat fail to see how they are going to manage that even allowing for calling a convertible version of a car a new model.
Quite possible if all they are doing is changing the body shape?? and adjusting the drivetrain to suit?? Question is how long will they use the same configuration of the rolling chassis for different sectors?
 

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2 models a year from 2016? Have to say.. I somewhat fail to see how they are going to manage that even allowing for calling a convertible version of a car a new model.
OK Lets speculate

2016......replacement 12C, Drop Head P13

2017....Drop head Mk2 12C, rebadged Alfa 4C

2018...New Mk2 P1....rebadged Honda Hybrid Sports Car

2019...4 door MP12 ( with new longer tub).....4x4 Mp12 , don't believe what you read in the newspapers
(with new longer tub 22" wheels and jacked up suspension)

2020...Mclaren buy BMW AND Honda and solve all product development bottle necks
 

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The y better start opening new dealerships around here, or all this is just fantasy.
 

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Quite possible if all they are doing is changing the body shape?? and adjusting the drivetrain to suit?? Question is how long will they use the same configuration of the rolling chassis for different sectors?
Not personally convinced trying to produce a lot of models differing only by bits of bodywork/small engine differences is necessarily a good idea compared to 2 basic good focused models (12c/p13 then the 12c replacement/facelift in 2016?) but what do I know about selling cars to be fair!
 

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Not personally convinced trying to produce a lot of models differing only by bits of bodywork/small engine differences is necessarily a good idea compared to 2 basic good focused models (12c/p13 then the 12c replacement/facelift in 2016?) but what do I know about selling cars to be fair!
I agree,but how else are they going to do it,the r&d would be too prohibitive ? with that timeline
 

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Porsche from one platform, engine and box make several models.....Boxster, Caymen, 911, Gt3, Turbo plus 911 derivatives such as 4 wheel drive, Targa, dropheads etc.

So why can't Mclaren claim more models off , maybe, a modified platform and different engine modifications?

Maybe you will say the Porsche platform can accommodate mid and rear engine.....why presume Mclarens tub is restricted to mid engine other than Ron claims that's the way ahead.......as a shareholder he is capable of rationalising a change of plan!

However I agree that excellence over a small number of cars would be a smart move for a 'new' car company.
 

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Porsche from one platform, engine and box make several models.....Boxster, Caymen, 911, Gt3, Turbo plus 911 derivatives such as 4 wheel drive, Targa, dropheads etc.

So why can't Mclaren claim more models off , maybe, a modified platform and different engine modifications?

Maybe you will say the Porsche platform can accommodate mid and rear engine.....why presume Mclarens tub is restricted to mid engine other than Ron claims that's the way ahead.......as a shareholder he is capable of rationalising a change of plan!

However I agree that excellence over a small number of cars would be a smart move for a 'new' car company.
Porsche have volume in their favour in that respect though. Even though 70% of the cars Porsches sell are Cayennes/Panameras these days, Porsche will sell >25-30k of 'sports' cars a year split between the 981/991 platform.

Ferrari IMO offer the better template to follow selling ~8-10k cars per annum over 4 models (FF/F12/458/California) than Mclaren trying to crack into the 20k per annum mass production market, especially with the lack of dealerships and backing of one of the major manufacturers although that perhaps might change with the F1 engine tie up with Honda in future as well I guess...
 

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Porsche have volume in their favour in that respect though. Even though 70% of the cars Porsches sell are Cayennes/Panameras these days, Porsche will sell >25-30k of 'sports' cars a year split between the 981/991 platform.

Ferrari IMO offer the better template to follow selling ~8-10k cars per annum over 4 models (FF/F12/458/California) than Mclaren trying to crack into the 20k per annum mass production market, especially with the lack of dealerships and backing of one of the major manufacturers although that perhaps might change with the F1 engine tie up with Honda in future as well I guess...
Not sure I follow?? 20k market? however many models the have,they will still limit themselves to 4k a year,although they could produce more from the MPC with a double shift !
 

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Not sure I follow?? 20k market? however many models the have,they will still limit themselves to 4k a year,although they could produce more from the MPC with a double shift !
Is 4k a limit that they will aim to keep to or was that just the expected number to shift per year by 2016 once the P13 came on line though, the impression I got was that they were targeting 4k sales for the 12c/P13 alone.

If they are going to introduce 2 new models per year from 2016, surely they will be targeting to increase production numbers from 4k as otherwise by 2020 there would be erm say 8 different models split amongst the 4k produced each year which surely wouldn't make much economic sense? or at least to me anyway... :eek:
 

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It's 4000 cars on one shift with the P1 restricting some output , presumably as they are assembled to perfection. So 8000 to 9000 on two shift.......they will not contemplate a night shift ( so they avoid upsetting the Tree Huggers, Bats, Owls, Badgers and Bunnies ) then it is a new factory for more volume.
 

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Not personally convinced trying to produce a lot of models differing only by bits of bodywork/small engine differences is necessarily a good idea
So you don't want McLaren to adopt the Aston Martin and Lambo product development strategy?
 

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OK Lets speculate


2018...New Mk2 P1....rebadged Honda Hybrid Sports Car


2020...Mclaren buy BMW AND Honda and solve all product development bottle necks
With the recent cancellation of the Aston Martin Cygnet, it really opens up the possibilities for McLaren to take it's Honda partnership in new and ridiculous directions to capture the huge vacuum left in the tiny-slow-cheap-car-turned-into-a tiny-slow-expensive-car. I mean, this thing is like a baby P1 just waiting to be MLaren-ified. :D

http://en.wikipedia.org/wiki/Honda_Insight

I joke, I joke, I keed, I keed.

-nh4.
 

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Porsche from one platform, engine and box make several models.....Boxster, Caymen, 911, Gt3, Turbo plus 911 derivatives such as 4 wheel drive, Targa, dropheads etc.

So why can't Mclaren claim more models off , maybe, a modified platform and different engine modifications?

Maybe you will say the Porsche platform can accommodate mid and rear engine.....why presume Mclarens tub is restricted to mid engine other than Ron claims that's the way ahead.......as a shareholder he is capable of rationalising a change of plan!

However I agree that excellence over a small number of cars would be a smart move for a 'new' car company.
the porsche mid and rear engined platforms are not the same . they are very clever in carryover , the chassis are very different .

Interesting ; 70 m to develop a new cars is peanuts to the big boys but obviously small manufacturers can make figures like that work . slightly misleading article though as mcl sold things to other parts of mcl to make books look better , but cest la vie .
 
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