McLaren to Launch 15 New Models over 6 Years, Will Invest 1.3 Billion Euros

McLaren 675LT 1 photo
Photo: McLaren
McLaren is on a roll, and the company plans a billion-pound investment to keep things going its way.
Along with the scheme to raise output, McLaren Automotive also wants to launch 15 new products in the next six years. This means the automaker should have 15 new models or variations of certain models by 2022. These new models are expected to account for the expanded production announced by the company’s CEO, Mike Flewitt.

An important part of the €1.3 billion investment will consist in the development of new powertrains. As McLaren’s boss explained, the company must reduce its CO2 average to “about” 121 grams of CO2/kilometer, equivalent to an average NEDC fuel consumption of 5 liters per 100 kilometers. Naturally, these values could only be achieved with hybrids.

McLaren’s CEO refused to describe the next power plant planned, but rumors are pointing toward a V6 engine optimized for hybrid applications. After all, McLaren has already announced that more than half of its cars will be hybrids by 2022.

Acknowledging the fact that the new engine will run in parallel to the V8 currently employed by the company, it’s clear that making another eight-cylinder unit would serve no purpose. McLaren's hybrid will be launched by “the end of the decade.” Minute changes to the platform will be included, but it will not be necessary to develop an all-new platform for it.

In an interview with Automotive News, McLaren CEO Mike Flewitt explained that the consistent investment will be made from revenue, not from investors. According to the Chief Executive Officer of McLaren Automotive, the company has been investing 25% of revenue back into the development of new products. Thanks to this idea, McLaren can stay profitable and still launch new cars, without asking shareholders or investors for funding.

McLaren claims they have not asked investors to fund them since 2013. However, McLaren stockholders have not attained any money from their stock in the company. Instead of paying dividends, McLaren can use its “free cash flow” to invest in development that will expand its business. Companies like Apple have done similar things in the past, and the ones that succeeded, Cupertino giant included, have attained enormous market value.
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About the author: Sebastian Toma
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Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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