Photo: S. Baldauf / R. Kah
At the Geneva Motor Show, McLaren launched the new 675LT model that is yet another variation of the 650 platform that is supposed to keep things interesting in the field. However, while some might think the brand is diluting itself bringing out more and more variations, the CEO claims that they won’t go as far as building an SUV.
Unlike other British companies that went this way (Bentley and Aston Martin, for example), McLaren doesn’t have to do the same, according to CEO Mike Flewitt. When asked about it at the Geneva Motor Show, he pointed that a company like the one he’s running can be profitable without that hussle.
There are a couple of tricks one must do in order to remain competitive without going through a lot of niches though, and his take on the matter actually made sense.
First of all, you need to avoid being too depended on one market or region alone. McLaren is currently spread neatly across the three biggest markets, selling 20 percent of its cars in Europe, 35 percent in North America and 30 percent in Asia. That setup allows them to be rather independent because while China might slow down, Europe or the US might pick-up in turn. Of course, all of them could take a turn for the worse but chances of that happening at once are slim.
Another thing that is basically finances 101 is that you have to keep costs under control. If you already have technology used on more expensive cars, adapt it to more modest ones so that you can build more with less research money spent.
Lastly, you need to keep your portfolio fresh. Customers that spend a lot of money on the supercars McLaren makes tend to get bored really quick and they can afford to change their rides often, even with a car from the competition if it offers better performance.
That’s one of the reasons why we’re seeing the Sport Series come out and why the company plans to invest €400 million in research and development of new cars every year. That number seems a little high and might be just boasting but it’s important to mention it as a reference point nonetheless, showing how serious the company is.
And it looks like this strategy is working, as McLaren sold more than 1,400 units last year and plans to double that number by the end of 2015. Thanks to the cheaper Sport Series models, that shouldn’t be an issue.
There are a couple of tricks one must do in order to remain competitive without going through a lot of niches though, and his take on the matter actually made sense.
First of all, you need to avoid being too depended on one market or region alone. McLaren is currently spread neatly across the three biggest markets, selling 20 percent of its cars in Europe, 35 percent in North America and 30 percent in Asia. That setup allows them to be rather independent because while China might slow down, Europe or the US might pick-up in turn. Of course, all of them could take a turn for the worse but chances of that happening at once are slim.
Another thing that is basically finances 101 is that you have to keep costs under control. If you already have technology used on more expensive cars, adapt it to more modest ones so that you can build more with less research money spent.
Lastly, you need to keep your portfolio fresh. Customers that spend a lot of money on the supercars McLaren makes tend to get bored really quick and they can afford to change their rides often, even with a car from the competition if it offers better performance.
That’s one of the reasons why we’re seeing the Sport Series come out and why the company plans to invest €400 million in research and development of new cars every year. That number seems a little high and might be just boasting but it’s important to mention it as a reference point nonetheless, showing how serious the company is.
And it looks like this strategy is working, as McLaren sold more than 1,400 units last year and plans to double that number by the end of 2015. Thanks to the cheaper Sport Series models, that shouldn’t be an issue.
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