McLaren’s Next Step: Joining Forces with Forseven

McLaren Automotive has announced a merger with Forseven Holdings, a UK start-up specialising in luxury electric vehicles (EVs). The deal was revealed on April 3, 2025, following the acquisition of McLaren Group’s car business by Abu Dhabi’s CYVN Holdings from Bahrain’s Mumtalakat fund. CYVN, which also holds a minority stake in McLaren’s Formula 1 team and supports Chinese EV maker Nio, is behind this significant shift.

McLaren is renowned for its supercars, competing with Ferrari and Lamborghini, but has faced financial difficulties, reporting losses for the past five years. Forseven, a company of around 700 employees, aims to launch its own luxury EV by the end of the decade. This merger could allow McLaren to expand its offerings—potentially including an SUV—while Forseven benefits from McLaren’s established reputation.

What’s the Plan?

Nick Collins, formerly of JLR, is leading the merged group. The focus is on broadening McLaren’s range beyond supercars. Sources indicate an SUV is under consideration, following the successful path of models like Ferrari’s Purosangue and Lamborghini’s Urus. McLaren’s CEO, Michael Leiters, stated last year, “To unlock the full potential, we think we should extend our line-up without diluting the brand.” No specific timeline for an SUV has been confirmed.

Forseven contributes EV expertise, and CYVN’s connection to Nio could enhance McLaren’s electrification efforts. Currently, McLaren produces petrol and hybrid vehicles, with Leiters noting caution about fully electric supercars: “The technology is not ready to make supercars fully electric.” Collins added, “We’ll have the ability to adapt our offer to the pace of transition.”

Staying British, Looking Forward

Collins told the Financial Times, “I vehemently believe luxury is what Britain does brilliantly in automotive.” McLaren continues to manufacture all its cars in Woking, Surrey, with the US as its largest market. Supercar production will remain in the UK, though plans for other models, such as an SUV, have not been detailed.

The merger coincides with new challenges, as US President Donald Trump’s 25% tariffs on foreign-made cars took effect on April 3, 2025, potentially affecting McLaren’s US sales. CYVN, however, is committed long-term. Jassem Al Zaabi, CYVN’s chair and now chair of McLaren Group Holdings, said, “It isn’t just about investing, it is about shaping the future of McLaren as a brand, as a business and its place on the global automotive map.”

Will There Be an SUV Soon?

The possibility of an SUV remains a key question. McLaren has historically avoided this crowded market, but the merger and CYVN’s resources make it more feasible. Autocar (April 2025) suggests a hybrid or electric SUV could emerge within three to five years, leveraging Forseven’s EV capabilities. No official confirmation has been provided.

My View

This merger looks like a practical step for McLaren. After years of financial strain and failed partnership talks, the support from CYVN and Forseven offers both funding and new opportunities. It’s a chance to grow—perhaps with an SUV—while staying true to McLaren’s identity. With electric vehicles gaining ground, this positions them well for the future. It’s worth watching, whether you’re a car enthusiast or just interested in what’s next.