McLaren receives £300m jump-start to keep wheels turning during coronavirus pandemic
- McLaren has received a £300million cash injection from its shareholders
- It is also talking to third parties about further boosting its working capital
- In addition, it is in discussions about altering the terms of its bank loans
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British supercar manufacturer McLaren has received a £300million cash injection from its shareholders to keep the wheels turning during the coronavirus pandemic.
McLaren, based at a plush factory in Surrey designed by renowned British architect Norman Foster, is also talking to third parties about further boosting its working capital.
In addition, it is in discussions about altering the terms of its bank loans.
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The privately owned company is controlled by Bahrain’s Mumtalakat sovereign wealth fund, which holds a stake of 57.7 per cent.
Its latest accounts state that ‘to protect the long-term strength of the brand in the luxury automotive market’ it had previously planned to reduce production from 4,662 cars to 4,000 this year.
The firm secured £300million from its existing shareholders in February and March to cover the scaleback – but now that money has been diverted to prop up the organisation.
The accounts say: ‘The new equity has been deployed to support the group during this period of unprecedented shutdown.’
McLaren has temporarily furloughed employees and asked other staff to take a pay cut.
In the year ending December 31, 2019, McLaren revenue rose 18.2 per cent to £1.5 billion, driven by a rise in prize money and sponsorship at its Formula 1 team and an increase in sales of higher value cars, which sell for more than £750,000.