McLaren profits could quadruple on strength of P1

Thu, Apr 3 2014

McLaren has had success on the track for the last 50 years, but its recent move into also building road cars full time is paying big dividends. The British automaker says that it expects revenue to double this year and pre-tax profit on deliveries to be four-times higher, thanks in no small part to selling out of its million-dollar P1.

"It's the main year in which we deliver McLaren P1s. You can expect quite a strong impact on our turnover and profits," said McLaren Chief Financial Officer Paul Buddin to Bloomberg. The business announced in November 2013 that it had sold the entire 375-car production run of the P1 sooner than it had originally planned.

Since launching the MP4-12C, McLaren has made it no secret that it wants to keep its product fresh by launching a new model each year. It initially followed the 12C coupe with the 12C Spider and P1, and this year, it has the 650S, while the 12C is reportedly being phased out. Next year's introduction is expected to be the Porsche-fighting P13. P14 and P15 models, plus a more powerful 650S, are rumored to be even farther down the track.

In just a few years of building production cars, McLaren has shown that it can already construct a vehicle with world-class performance. Its next step is growing the company's sales further. It hopes to move around 4,500 units annually in the next two or three years. With over a hundred grand prix wins in its history, the team is showing it's got a good shot at translating racing victory into financial success.

Featured Gallery 2015 McLaren P1: First Drive

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News Source: Bloomberg

Earnings/Financials
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mclaren p1
mclaren 650s
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By Chris Bruce