British supercar manufacturer McLaren is set to merge with compatriot electric vehicle (EV) start-up Forseven, in a move that will see its model lineup expand to potentially include an SUV. The merger was announced on 3 April after Abu Dhabi investment group CYVN completed its acquisition of McLaren’s automotive business from Bahraini sovereign wealth fund Mumtalakat.
McLaren Automotive has posted consistent losses for the last five years. In 2023, its losses more than doubled to a record £873m (US$1.3bn), despite a revenue increase of £431m and a 31.5% year-over-year increase in turnover. While full year results for 2024 are not yet posted—the scheduled date is 24 April—in H1 it reported a 51.5% boost in revenues to £421m. CYVN is also a backer of Chinese EV brand Nio, which has also experienced widening losses as it deepens its investments into battery swapping stations and new sub-brands Onvo and Firefly.
The merger is expected to be mutually beneficial for both McLaren and Forseven. While McLaren will benefit from an expanded product lineup and technology access, Forseven will benefit from McLaren’s 62-year heritage and brand recognition. The merged group will be headed up by Nick Collins, a former Jaguar Land Rover executive. “I vehemently believe luxury is what Britain does brilliantly in automotive,” Collins told the Financial Times in an exclusive comment.
Forseven is a small manufacturer, founded in March 2022. It is based in the UK and currently has around 700 employees. It has yet to bring any vehicles to market, but has promised that several EV supercars will be launched by the decade’s end.
Even under the new merger, McLaren has its work cut out. Its largest market is the US, meaning it must now reckon with President Trump’s steep 25% tariffs as it looks to sell its vehicles. It has no manufacturing operations in the US, or anywhere outside the UK. Sources close to the merger talks told FT that the combined group intends to continue producing its cars in the UK, with no concrete plans to expand manufacturing overseas.
