McLaren Will Finally Build an SUV — and Its Own Engines, Too
The company that spent a decade insisting it would never build an SUV now has one in development — plus its first in-house engines, funded by Abu Dhabi owner L'IMAD.
McLaren will build an SUV after all. The company confirmed the long-rumored model on Wednesday as the centerpiece of a £500 million program to expand its UK manufacturing, engineering, and operations, funded by L'IMAD, the Abu Dhabi sovereign investor that controls the supercar maker.
The plan includes a second vehicle assembly facility in the UK and, McLaren says, the first engines designed and built in-house in the company's history. Two new engines and transmissions are in development to underpin its hybrid lineup. Until now, engine production has been outsourced: British engineering firm Ricardo builds both the twin-turbo V8 and the Artura's hybrid V6.
McLaren will also expand the McLaren Production Centre in Woking, where its cars are assembled, and the carbon-fiber facility in South Yorkshire that molds every chassis. Together with the recently opened design studio in Bicester and a vehicle-testing site in the Midlands, the company says the network will cover everything from design to manufacturing without leaving Britain.
The program is expected to create at least 1,000 direct and indirect jobs by 2032 and double McLaren's manufacturing workforce, with up to 3,000 more positions across the supply chain, by the company's own estimate.
A U-turn years in the making
For most of the past decade, McLaren treated the SUV question as settled. Former CEO Mike Flewitt told Top Gear in 2018 that the world already had more than enough SUVs, arguing a high-riding McLaren would dilute the brand and struggle to turn a profit.
While McLaren held out, every direct rival cashed in. Lamborghini's Urus became a volume machine, Aston Martin leaned on the DBX, and Ferrari's Purosangue arrived with a US starting price just under $400,000 — and still built a multi-year order book.
What changed is ownership. CYVN Holdings, an Abu Dhabi investment vehicle, agreed to buy McLaren's automotive business in late 2024 and merged it with its own car startup, Forseven; the combined group was later consolidated under L'IMAD, according to Autocar. The new shareholder has since cleared McLaren's automotive debt and is now funding the expansion.
"Over the past 20 months, L'IMAD has worked closely with McLaren Automotive's management team, supporting the business in sharpening its strategic direction," said Jassem Al Zaabi, L'IMAD's managing director and group CEO.
The economics are straightforward. Autocar reports the Woking plant built around 2,000 cars in 2025 — a fraction of what Ferrari or Lamborghini deliver — and a second model line aimed at everyday use is the fastest way to change that without discounting supercars.
What McLaren isn't saying
There is no name, no launch date, no powertrain specification, and no location for the new assembly plant yet. The in-house hybrid engine program suggests the SUV won't be a pure EV, but McLaren hasn't confirmed that either. The company frames the newcomer as part of a portfolio built around the supercar, segmented to protect brand value rather than chase volume.
Expect the details to trickle out as the new facilities take shape. For now, the certainty is this: one of the last holdouts among supercar makers has joined the SUV business — and the next McLaren engine will, for the first time, actually be built by McLaren.
