Woking: Apple reported to be making overtures to McLaren

Apple has been working on a self-driving electric vehicle for more than two years, and according to the Financial Times it has now extended its potential involvement in the automotive industry by making overtures to Woking-based McLaren Technology Group, the British supercar engineer and Formula One team owner whose luxury sports cars can cost as much as $1 million apiece.

Apple might seem to be seriously contemplating either a full takeover of McLaren or a strategic investment. The attraction of McLaren is its advanced technology, reputation for fine engineering and range of patents. Its expertise ranges from automotive engineering and on-board computer systems to novel chassis materials such as carbon fibre and aluminium.  

Apple has, however, declined either to confirm or deny that it has been involved in discussions with McLaren; and McLaren has stated, following the report in the Financial Times, that it is “not in discussion with Apple about any potential investment”. 

McLaren Automotive is reported to be valued at between £1 billion and £1.5b. It produced 1,654 vehicles in 2015; its revenues were £450m; and it has pledged to invest £1b in the next six years on research and development. But it is currently making a loss.

Hitherto, Apple’s largest acquisition has been the audio group, Beats Electronics, which it bought for $3b in 2014. Earlier this year it also invested $1b in Didi Chuxing, the Chinese ride-hailing company. These investments suggest that its current CEO, Tim Brook, has no qualms about breaking with Apple’s traditional aversion to large deals.