McLaren May Sell Stake in F1 Team to Improve Chances of Survival

Matt Posky
by Matt Posky
mclaren may sell stake in f1 team to improve chances of survival

With McLaren scrounging for cash and cutting 1,200 positions from its ranks in the hopes of prolonging its own existence, it would be an understatement to claim 2020 has been unkind to the automaker. Most nameplates are having a rough year. And almost all are seeking ways to turn things around before the situation becomes untenable and their fate becomes sealed.

The plan for McLaren involved a £150 million loan from the National Bank of Bahrain and more than a few empty seats.

Autocar now claims the brand has even considered selling part or all of McLaren Applied and Automotive. While the outlet admits this likely hinges on its evolving financial situation, a company insider confirmed advanced discussions are focused on selling a minority stake in the Racing division.

The source also denied rumors that McLaren’s automotive division is on the table, though we imagine everything came up in conversation at least once, given the company’s current balance sheet.

From Autocar:

McLaren’s bond holders and board are believed to have given the go-ahead to explore offers of interest in this last week. When approached by Autocar, a McLaren spokesman said: “We are considering the option of additional investors in the Racing business.”

The most recent insight into the McLaren Group’s value — comprising all three divisions of the firm — came two years ago, when Michael Latifi, father of Williams F1 racer Nicolas Latifi, bought a 10 [percent] share for just over £200m, suggesting a valuation of more than £2 billion at that time. However, with the upcoming F1 cost cap imminent, potentially making the team more profitable, it’s possible that valuation, plus the team’s upturn in form, could raise the price of a share in the race team.

Parallel to this, a sale of Applied — a company that uses McLaren’s racing-derived expertise, particularly on data, technology and teamwork, and applies it to everyday industries, most notably in health and public transport – is also believed to be being discussed. However, that’s said to be complex, because of the firm’s reliance on its racing team links in order to thrive.

[Image: F1; McLaren]

Join the conversation
 1 comment
  • Jacob Jacob on Jul 06, 2020

    McLaren's financial troubles were a predictable result of mediocre performance for most of the last decade. Between 2012 and 2013 Formula 1 seasons, they somehow went from hero (7 wins) to zero (zero wins), and it kept getting worse from then on. In 2014, they couldn't convert their access to the dominant Mercedes engine into good results, even though Williams with more modest resources but the same engine was frequently on podiums. And the 2015-2017 years were the rock bottom for the teams, but they managed to place all blame on the Honda engines. Only when the spell of mediocrity continued into 2018, now with Renault engines, they finally admitted that they screwed up. In 2018-19 they were basically a midfield team, fighting for the title of the best of the rest against Renault. It remains to be seen how they will do this season.

  • Luke42 Manual transmissions are a workaround for the weaknesses of ICE engines.Electric motors don't have these weaknesses, so why reintroduce the workaround?P.S. My first 250k miles were in manual transmission ICE vehicles. I can probably outshift all y'all, and I can definitely drive a manual smoother than some automatics. While I'm proud of my obsolete skills, there's just no reason to pretend I'm driving an obsolete vehicle. An EV should drive like an EV.
  • SCE to AUX Lexus: "Let's add unnecessary complexity to an EV so it is harder to drive and breaks more often. After all, our parent Toyota hates EVs, and is hopelessly late to market with them, so this will be a fun diversion for a while until we figure out how to beat Mazda's sales numbers."
  • Roadscholar I like emotive shifts.
  • Dwford What's next, your blender only spins slow unless you spend $5.99/month for the "Puree Package?"
  • Jeff S We have had so many article about gas wars. A lighter subject on gas wars might be the scene from Blazing Saddles where the cowboys were around the campfire and how their gas contributed to global warming or was it just natural gas.