The company will also continue producing supercars
McLaren Automotive Ltd. is taking a step closer to producing high-end sport utility vehicles and sedans as part of a turnaround plan under the struggling British supercar maker’s new owners.
Abu Dhabi’s CYVN Holdings LLC, which took control of McLaren in December, will merge the company with its UK electric-vehicle startup Forseven Holdings, according to people familiar with the matter.
The state-owned investment firm wants to leverage McLaren’s storied brand for a new lineup of vehicles, the people said, asking not to be identified as the plans are confidential. The company will also continue producing supercars.
CYVN plans to announce the merger in the coming weeks, some of the people said. Nick Collins, a former Jaguar Land Rover executive, will lead the enlarged entity, while McLaren’s current Chief Executive Officer Michael Leiters will remain the head of the brand’s car company, they added. McLaren declined to comment, while CYVN has been contacted for comment.
CYVN is aiming to reverse years of losses at McLaren, one of the UK’s best-known sports car brands that’s been strapped for cash. McLaren has had to tap shareholders for funding on multiple occasions in recent years amid delays to its Artura model. The manufacturer also sold some of its heritage car collection, offloaded its advanced technologies arm and completed a sale and leaseback of its Woking headquarters.
A merger with Forseven appears to be the first step in a turnaround under the new owners. While sports car brands including Ferrari, Lamborghini and Porsche have launched SUVs to capitalize on rising demand, McLaren for years resisted as it focused on performance cars.
Former CEO Mike Flewitt had previously declared McLaren would never build a larger car, saying in a 2018 interview with TopGear.com that there were “more than enough SUVs in the world and we don’t need another one.” Leiters last year confirmed plans to enter the SUV market.
Little is known about Forseven, which touts itself as a British luxury car company but hasn’t yet revealed plans for any models or when it aims to start selling cars. Chinese EV maker Nio Inc. said in February 2024 that it had entered into a technology licensing agreement with Forseven. CYVN is also an investor in Nio.
As well as purchasing the automotive business from Bahrain’s Mumtalakat Holding Co., CYVN also bought a minority stake in the McLaren F1 team, which is riding high after winning last year’s constructors’ championship for the first time since 1998.
Source: gulfnews