Photo: McLaren
McLaren Automotive is in full expansion mode, as it expects to double production from last year’s result.
Mike Flewitt, the CEO of McLaren, has disclosed the fact that the company plans to build and sell approximately 3,000 vehicles this year. Compared to last year’s 1,654 units, that’s almost double. But McLaren has bigger ambitions.
As the company’s CEO has announced in an interview with Automotive News, McLaren will raise output to around 4,500 to 5,000 cars a year by 2022.
Their maximum production capacity will be capped at “around 5,000 units.” Once reached, McLaren does not want to “significantly increase” sales from that point on.
The strategy of capping production is currently applied by all luxury brands in one form or another. Ferrari is famous for estimating how many cars it could sell out of every model, especially its flagships, and building one less. A strategy such as Ferrari’s is motivated by sustaining exclusivity, along with ensuring the vehicles are still desirable.
Along with the production expansion, McLaren is also extending its dealer network. The brand now has 82 dealers on a global scale, while the expansion plans will reach 100 dealerships by 2022. At the same time, the company’s value has doubled from 2013, and the CEO expects McLaren to be worth twice more than it is today by 2022.
When asked about the evolution of the company and the results of previous years, Mike Flewitt stated that the last three years went “exactly to plan, maybe a little bit better.” In the time mentioned above, McLaren sold 8,000 cars, and the head honcho of the Woking company admits they are “still a new boy,” as well as the fact that the competition has “much greater awareness.”
Currently, Flewitt claims his primary challenge is to maintain substantial revenue to avoid asking investors to supplement the company’s consistent investment plan. We will discuss the latter in a separate story.
As the company’s CEO has announced in an interview with Automotive News, McLaren will raise output to around 4,500 to 5,000 cars a year by 2022.
Their maximum production capacity will be capped at “around 5,000 units.” Once reached, McLaren does not want to “significantly increase” sales from that point on.
The strategy of capping production is currently applied by all luxury brands in one form or another. Ferrari is famous for estimating how many cars it could sell out of every model, especially its flagships, and building one less. A strategy such as Ferrari’s is motivated by sustaining exclusivity, along with ensuring the vehicles are still desirable.
Along with the production expansion, McLaren is also extending its dealer network. The brand now has 82 dealers on a global scale, while the expansion plans will reach 100 dealerships by 2022. At the same time, the company’s value has doubled from 2013, and the CEO expects McLaren to be worth twice more than it is today by 2022.
When asked about the evolution of the company and the results of previous years, Mike Flewitt stated that the last three years went “exactly to plan, maybe a little bit better.” In the time mentioned above, McLaren sold 8,000 cars, and the head honcho of the Woking company admits they are “still a new boy,” as well as the fact that the competition has “much greater awareness.”
Currently, Flewitt claims his primary challenge is to maintain substantial revenue to avoid asking investors to supplement the company’s consistent investment plan. We will discuss the latter in a separate story.
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