McLaren will invest £500 million in its UK manufacturing and engineering operations, the British supercar maker said on 16 September, as it prepares to launch its first SUV and expand production with the aim of increasing sales and improving profitability.

The investment will fund a new UK vehicle assembly facility and the expansion of operations at McLaren’s production centre in Woking and carbon-fibre facility in South Yorkshire. The company said the programme will create at least 1,000 direct and indirect jobs across its UK operations by 2032, with its manufacturing workforce expected to double.

McLaren said the investment will allow it to design and build future powertrains in-house for the first time, beginning with two new engines and transmissions. The company said the facilities will support its next generation of vehicles, including the newly confirmed performance SUV.

Nick Collins, chief executive officer of McLaren Group Holdings and McLaren Automotive, said: “This investment gives us the platform to grow, develop and build on what makes us distinctive, while investing in the people, technologies and products that will keep us competitive for decades to come.”

The SUV forms part of McLaren’s plans to broaden its product range beyond its existing supercar portfolio, with the company targeting additional sales while retaining its positioning in the luxury performance market. Collins told Reuters that the model would be developed in a “McLaren way” and offer something distinctive to customers, but declined to provide a launch date or further product details.

McLaren’s expansion follows a restructuring that reduced sales to about 2,000 vehicles in 2025, down from just under 3,300 the previous year. The company cut one of two production shifts at its Woking assembly plant and moved to an order-led manufacturing model to reduce dealer inventory, according to Reuters.

Michael Straughan, McLaren’s chief operating officer, said the company needed to increase volumes to reduce material costs and improve profits, with the expanded product portfolio providing a route to growth. “We can equal the best, but we’ve got a long way to go,” he said, referring to profit margins among luxury carmakers.

McLaren’s shareholder L’IMAD, the sovereign investor of the Government of Abu Dhabi, has committed £1.5 billion to the business over five years. The company said its wider UK expansion could support up to 3,000 additional jobs across the supply chain.

In comments to the BBC, First Secretary of State Louise Haigh described the investment as a “huge opportunity” for young people in Woking, where McLaren is based, pointing to the apprenticeships and employment opportunities created by the expansion. Woking MP Will Forster said the plans would create new jobs and opportunities for local young people, while Surrey Chambers of Commerce chief executive Helene Hall said the investment would boost the local economy and careers in advanced manufacturing.

McLaren chief executive Nick Collins told Reuters the company currently has no plans for a fully electric vehicle because it does not see sufficient customer demand. “We will do an electric vehicle when our customers ask us for one,” he said. “And they’re not asking."

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