For over a decade, McLaren has focused on the high-performance car scene with its mid-engined, two-seat exotics. However, the supercar market’s limited customer pool and high development costs haven’t translated to booming profits. To address this, CEO Michael Leiters is exploring new avenues, including a potential SUV or a traditional grand tourer.
In an interview with Automotive News at Goodwood, Leiters emphasized the importance of cost-sharing partnerships and lifestyle-oriented models in getting McLaren back on track. Hired in 2022 to revive the company’s finances after a pandemic slump, Leiters faces the reality of McLaren’s 2023 loss of $1.1 billion, signifying that even recent models like the Artura plug-in hybrid and the 750S haven’t secured profitability.
Profitability is a must and Leiters aid they have two plans in place. “One is a stand-alone plan to stay independent without any technology partner and focus on supercars as our core element. This is a profitable plan. But to unlock the full potential, we think we should extend our product lineup to something more lifestyle-oriented.”
This lifestyle expansion could take the form of an SUV or a 2+2 grand tourer, Leiters explained.
Part of McLaren’s financial struggles, Leiters believes, stems from overly ambitious production targets. He emphasizes the need to increase the average selling price while slightly reducing production volume. The former Ferrari executive views improved product quality as the key to raising prices. While acknowledging the importance of Artura and 750S sales, Leiters admits that high-profit models like the Solus GT and the legendary P1 significantly contribute to the bottom line.
“A McLaren is an emotional purchase. You don’t need it,” Leiters said to Automotive News. “You are wealthy, but you are not stupid. So, residual values are very important. We will not oversupply anymore.”