McLaren has confirmed plans for an SUV as part of a major £500 million investment from Abu Dhabi’s L’IMAD sovereign wealth fund, marking a significant expansion of the British automaker’s product and manufacturing plans.
The investment, worth approximately $673 million, will also fund a new UK production plant, two new in-house engines and corresponding transmissions, as well as expanded capacity at McLaren’s existing facilities.
McLaren SUV Part of Major Investment
L’IMAD acquired McLaren’s road car business in 2024 from the sovereign wealth fund of Bahrain. Its latest investment comes as McLaren has faced financial difficulties since the pandemic and relied on additional funding from investors.
The company has previously taken measures including selling historic cars and entering a sale-and-leaseback deal involving its headquarters in Woking, UK.
With the new funding, McLaren says it will launch the SUV while establishing an additional production plant in the UK. The automaker also plans to develop and build two new engines and their corresponding transmissions in-house. McLaren currently outsources its engines to British firm Ricardo.
New McLaren Production Capacity and Jobs
The investment will also support expanded capacity at McLaren’s existing plant at its Woking headquarters, as well as at its carbon-fiber plant and research center in South Yorkshire.
Around 1,000 new jobs are expected to be created across McLaren’s UK footprint by 2032. The announcement did not mention an electric vehicle.
What to Expect From the McLaren SUV
The McLaren SUV is expected later this decade and represents the largest new product element of the investment announcement. McLaren itself did not provide details about the vehicle, but dealers who were shown a clay model last year have described it as resembling a larger version of the Porsche Cayenne Turbo GT.
According to those dealers, the SUV will have two rows and five seats and use a hybrid V8 powertrain rather than a plug-in hybrid setup.
Autocar, citing comments from McLaren Chief Operating Officer Michael Straughan, has reported that the SUV could use an ultra-light carbon-fiber tub similar to those used in McLaren’s supercars.
The carbon-fiber tub would require a unique design because the engine would be mounted at the front rather than in the middle. The approach could also create an opportunity for additional front-engined models.
Could McLaren Add More Front-Engined Models?
One potential front-engined model could be a sleek sedan, according to Automotive News. By sharing mechanical components with the SUV, the strategy would be similar to Porsche’s Cayenne and Panamera lineup.
Before those potential front-engined models arrive, McLaren is expected to introduce a new mid-engined car. Codenamed P34, the model is expected to sit above the Artura.
The P34 is expected to use a hybrid V6 powertrain like the Artura, but it likely will not adopt the Artura’s plug-in hybrid technology.
McLaren’s Next Phase
The £500 million investment will support McLaren’s planned SUV, new manufacturing capacity, two in-house engines and corresponding transmissions, along with expanded facilities in the UK. The company also expects the investment to support around 1,000 new jobs across its UK operations by 2032.
