SUV not on the target products of McLaren Automotive

Article by Christian A., on March 12, 2015

Expect no super SUV sooner from McLaren Automotive. Mike Flewitt, its chief executive, remarked that McLaren doesn’t need to enter the SUV just to generate the cash needed to keep renewing its range. He remarked that a narrow product portfolio is not a problem if the carmaker just focuses on three things: avoid being too dependent on one region; tight control over costs; and to spend money to make money.

McLaren has spread its sales in different regions – Europe (20 percent), North America (35 percent) and in Asia (30 percent). Flewitt cited China as an example, saying that if McLaren overcommit to the very volatile Chinese market, it will lose “a load of sales.” To keep tight control over costs, McLaren is cleverly re-packing and re-using already-developed technology.

For instance, its entry-level Sports Series variant that will be unveiled at the New York auto show next month will use a variation of the carbon-fiber platform and will be powered by the same V-8 engine powering the 650S and the P1. He remarked that supercar customers are impatient and are moving onto the next new thing quickly, which means that model replacement cycles are fast.

“The fresher you keep the produce the more you can keep your price up,” Flewiit said, adding that he eyes to spend EUR300 million (EUR415 million) annually on new model development.

While it would take a long time before McLaren achieve a profit margin similar to Ferrari’s 14 percent, the carmaker has already topped the 1,400 annual sales figure needed to make a profit. He added that he expects McLaren to sell around 3,300 cars next year, as boosted by the Sports Series.

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