Photo: McLaren
Established by a motorsport legend named Bruce in the 1960s, McLaren has enjoyed enormous success over the years despite a few challenging moments. Teddy Mayer took over from Bruce after the founding father died in an unfortunate accident in 1970, leading Macca to its first constructors’ title in ‘74. The biggest change for the better, however, is attributed to Ron Dennis.
By merging with Project Four Racing, the team under Dennis’ rule was virtually unstoppable from 1986 to 1991. A few years later, Mika Hakkinen and Lewis Hamilton cemented Ron’s status as a talented yet shrewd leader.
As fate would have it, McLaren started to develop cracks from 2009 onwards. Uncompetitive cars, a failed partnership with Honda, and the ousting of Dennis have bled the Formula 1 outfit dry, and these mess-ups took their toll on the group as a whole. The automotive and applied division find themselves at an ominous crossroads as well, desperately struggling to make ends meet.
A declaration sent last week to the High Court of Justice - Business and Property Courts of England and Wales paints the bleakest picture McLaren has ever seen, with the group mentioning the “urgent need to raise new money by no later than July 17th.” After an expedited hearing in London last week, the refinancing plan may receive the stamp of approval next week.
The PDF document at the end of this article also states that “the group is now facing an impending liquidity shortfall. Sales of motor cars have been very heavily affected, as has the Formula 1 season.” The most saddening part is that McLaren is using its headquarters in Woking and car collection as security for a loan.
This is the moment one has to ask himself or herself if it would be wise to pour millions of pounds sterling into a company that’s already having money trouble. To make matters worse, both the McLaren Technology Center and historic car collection are already collateral for a previous loan.
“Desolate” is the best word to describe the group’s financial situation, and insiders suggest that 30 percent of McLaren Racing could be sold in order to raise capital. Given these circumstances, it also appears that the F1 team is compromised given that less money means less development for the MCL35 racing car.
As fate would have it, McLaren started to develop cracks from 2009 onwards. Uncompetitive cars, a failed partnership with Honda, and the ousting of Dennis have bled the Formula 1 outfit dry, and these mess-ups took their toll on the group as a whole. The automotive and applied division find themselves at an ominous crossroads as well, desperately struggling to make ends meet.
A declaration sent last week to the High Court of Justice - Business and Property Courts of England and Wales paints the bleakest picture McLaren has ever seen, with the group mentioning the “urgent need to raise new money by no later than July 17th.” After an expedited hearing in London last week, the refinancing plan may receive the stamp of approval next week.
The PDF document at the end of this article also states that “the group is now facing an impending liquidity shortfall. Sales of motor cars have been very heavily affected, as has the Formula 1 season.” The most saddening part is that McLaren is using its headquarters in Woking and car collection as security for a loan.
This is the moment one has to ask himself or herself if it would be wise to pour millions of pounds sterling into a company that’s already having money trouble. To make matters worse, both the McLaren Technology Center and historic car collection are already collateral for a previous loan.
“Desolate” is the best word to describe the group’s financial situation, and insiders suggest that 30 percent of McLaren Racing could be sold in order to raise capital. Given these circumstances, it also appears that the F1 team is compromised given that less money means less development for the MCL35 racing car.
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