There's a profit party at McLaren and if the UK doesn't hurry, it could rain on our supercar parade.
Unlike its supercar rivals Ferrari and Lamborghini, McLarens seem to be averse to going up in flames, but that doesn’t stop the British supercar maker from being figuratively on fire. Due to its best efforts, McLaren can’t keep any of its two-seat supercars off of dealership lots and as a result, profits have been soaring. In 2015, 1,654 McLarens found their ways out of the Woking, England factory and into new garages. More impressive is the fact that the number is expected to double by 2016 and triple by 2020.
In its five years of building cars, McLaren has managed to turn a profit for three of them, and now on its fifth anniversary, the company is celebrating its most profitable year ever. To keep up with the uptick in demand, McLaren had to increase its workforce by 16% and will likely need to keep expanding. Part of its success has to do with the fact that instead of doling out bonuses, McLaren reinvests a large amount of its profits back into creating new cars. Outlined in its Track22 business plan, which is supposed to carry the young automaker ahead into the year 2022, up to 25% of profits are to be reinvested into research and development of new technologies and vehicle improvement.
Over the six years that the plan encapsulates, $1.32 billion dollars will be invested into R&D. Out of the investment, McLaren hopes to add 15 new models, half of which will be hybrids, to its Sport Series (represented by the 570S, 570GT and 540C), Super Series (consisting of the 650S and 675LT variants), and the Ultimate Series (housing the heavyweight P1 and P1 GTR). Currently McLaren seems like an unstoppable force in the industry, and we’re okay with that given how we beam bright grins whenever we recall our recent drive with an orange 650S. However, trouble may be looming and it all boils down to one word: Brexit. CEO Mike Flewitt said, “We’ve noticed no effect from Brexit so far.”
With the EU trade laws still in place, McLaren isn’t feeling any pain in its bottom line, but the uncertainty could complicate and postpone important decisions that need to be made to ensure optimal adaptability. He urged action from UK regulators by adding, “…continued uncertainty is not good for any business and we urge the authorities to get on and make a decision.” We’re sure that whatever happens, wealthy McLaren buyers outside of the UK won’t mind the likely increase in import/export taxes brought on by Brexit, but given that the automaker channels precious profit money from its coffers into heart-snatching supercars, we’d like McLaren to feel as comfortable as it can.