McLaren Considering Mortgaging Factory Historic Collection

McLaren Considering Mortgaging Factory Historic Collection

It could make use of its assets to raise more than $360 millions in funding.

According to the BBC, McLaren could borrow its historic racing cars and McLaren Technology Centre headquarters at Woking to raise funds. McLaren, like many manufacturers, has suffered a significant financial loss during the coronavirus crisis. Both sales of its road cars as well as revenue from Formula 1 took a significant hit.

McLaren had reportedly been denied furlough support by the government for its 3,000-strong workforce, after it was determined that McLaren hadn’t explored enough fundraising options.

McLaren Considering Mortgaging Factory Historic Collection

McLaren has not commented on the suggestions but a spokesperson told the BBC it was looking into options.

McLaren, like many British businesses, has been badly affected by the current pandemic. We are exploring various funding options to help with these short-term interruptions.

The loan amount could reach PS300 million ($363M). Once racing resumes and after the pandemic has passed, the amount will be repaid.

McLaren Technology Centre is where the company makes its F1 and road cars. A second facility houses a smaller number of F1 and F2 cars. It also displays many of its historical road and racing cars, including those from IndyCar and Le Mans. The famous “Boulevard”, which is located on the factory’s 50-hectare main artificial lake, houses cars driven by Hamilton, Prost and Hakkinen.

McLaren’s revenues increased by 18% to PS1.4 billion ($1.7B) last year, with 90 percent of its road vehicle output sold abroad.