McLaren announces profits, Turnover and income for the last business year, all is great.

McLaren Automotive accelerates to fourth consecutive year of profitability from record sales in 2016; confirms business plan on track with launch of new Super Series and Sports Series models

• Record 3,286 McLaren cars sold in 2016 drives 70% increase in profit before tax
• £65.8M operating profit for period is 180% gain on 2015 and fourth consecutive year of operating profit in only sixth year of selling cars
• Sales revenues of £649.8M in 2016, up by 44%
• Turnover of bespoke sales division, McLaren Special Operations, grows by 147% compared to 2015, with Aftersales revenue also increased, by 37%
•  Continued significant investment in Research and Development, at £129.1M (20% of turnover) in 2016
• Workforce grows by further 8%, to manage company growth and meet product demand
• Track22 Business Plan confirmed as on track to deliver ongoing success for McLaren Automotive as a manufacturer of luxury sportscars and supercars
• First car launched under Track22 was McLaren 720S, in March 2017; sold out for this year with 1,500 orders taken
• Second car is new McLaren 570S Spider, which makes world debut at Goodwood Festival of Speed as the first convertible in the McLaren Sports Series

British sportscar and supercar manufacturer, McLaren Automotive, today announces yet another record-breaking year in respect of vehicle sales and financial performance.

Profit before tax of £9.2M from an annual sales revenue of £649.8M in 2016 gave McLaren Automotive a fourth consecutive year of profitability in only six years, since start of sales in 2011.  This was an increase in profit before tax of 70% compared to the £5.4M reported in 2015.

Operating profit of £65.8M in 2016 was the company’s highest ever, standing at 10% of turnover and representing a 180% increase over 2015. The strong financial performance in 2016 was underpinned by record sales, with a total of 3,286 cars purchased; this was a 99% increase over 2015 and exceeded the company’s own expectations by almost 10%, with all geographic regions achieving sales growth. 

“The positive financial performance in 2016 was underpinned by a 44% increase in sales revenues and is further proof that McLaren Automotive’s growth plans are both achievable and sustainable,” said McLaren Automotive Chief Executive Officer, Mike Flewitt. ”Investment in R&D and future product during the period of £129.1M – 20% of turnover – reaffirms our commitment to the Track22 Business Plan that will produce 15 new models or derivatives by the end of 2022 and the focus going forwards will be on successfully delivering these new products and managing continued profitable growth.”

In its first full year of production, the Sports Series family accounted for 2,031 deliveries, the majority of which came from the recently-introduced McLaren 570GT and 570S models.  The Super Series also continued its success story thanks, in large part, to the McLaren 675LT Coupé and Spider models. Having both sold out in a matter of weeks, the limited production, even more driver-focused and higher-performance derivatives of the Super Series started production in mid-2015 but continued through 2016.  In total, 1,255 Super Series cars were sold in 2016.

In March 2017 the second-generation McLaren Super Series, the new McLaren 720S, was launched. The new car generated immediate customer interest and some 1,500 orders have been taken to date.  A new convertible Sports Series model, the 570S Spider, was announced on 14th June 2017 and makes its world debut this week in the UK at the Goodwood Festival of Speed.

“The McLaren Automotive business continues to perform strongly, with 2016 returning a fourth consecutive year of positive financial results,”  said McLaren Automotive Chief Financial Officer, Paul Buddin. ”Profit before tax was up by 70% to £9.2M, from our highest-ever operating profit of £65.8M, an increase of 180% over 2015. These results were driven by vehicle sales totalling 3,286 in 2016 – 99% up year-on-year and another record – and significant growth in revenues from McLaren Special Operations (MSO) and McLaren Automotive Aftersales operations.”

Sales increases in all regions

Geographically, in 2016 North America continued to be McLaren Automotive’s single largest market with deliveries of 1,139 cars, a 106% increase over 2015. Europe ended 2016 selling 996 cars in total, an increase of 153%, whilst the rapidly-developing market in China sold 228 cars in total.  The Asia Pacific region grew by 90% while the newly combined Middle East, Africa and Central and South America region grew by a notable 69%.  In addition, the global footprint of the McLaren retailer network continued apace in 2016, with new dealer facilities opened in Bristol (UK), Boston and Palm Beach (USA), Gold Coast (Australia) and Fukuoka in Japan.

In parallel with the vehicle sales success, McLaren Automotive also saw substantial growth in non-car-related activities.  McLaren Special Operations (MSO), the company’s bespoke division, posted an increase in revenue of 147%, while the Aftersales function recorded turnover growth of 37% for the year.

”2016 was an extraordinary year for McLaren Automotive, with a near-doubling of sales and the completion of our 10,000th car,”  commented McLaren Automotive Executive Director – Global Sales and Marketing, Jolyon Nash. “While we will never again see another jump in sales volume of this magnitude, the reception to the new 720S and the new 570S Spider has been incredibly positive and initial orders for both are beyond our expectations. Having the new, second-generation Super Series and the first-ever Sports Series convertible in showrooms will give every one of the 80 McLaren retailers worldwide the opportunity to contribute strongly to another record year for the McLaren Automotive business in 2017.”

On-going investment in Research & Development and new products

During 2016, McLaren Automotive invested £129.1M in new projects, across the Sports Series, Super Series and Ultimate Series product families.  The Track22 Business Plan sees McLaren investing an industry-leading percentage of turnover (20% in 2016) in R&D activities over the period of the plan. This will take the company towards its objective of producing more than 4,500 vehicles annually by the end of 2022, with at least 50% of these cars featuring hybrid powertrain technology.  The Business Plan also includes the development of a fully-electric powertrain for a concept car to evaluate its possible use in a future Ultimate Series. In 2016, the early prototype stages of the development work commenced.

McLaren Automotive is also investing in senior management infrastructure to support its product development plans.  Dr Jens Ludmann was announced in May 2017 as the company’s new Chief Operating Officer.  Reporting to the CEO, Dr Ludmann will oversee the launch of 13 new models or derivatives during the next five years and focus on further developing internal working processes, relationships and disciplines across Product Development, Purchasing, Supplier Quality Assurance and Manufacturing.

A year of transition for the McLaren Production Centre

The McLaren Production Centre (MPC), the sole location for the hand-assembly of McLaren Automotive sportscars and supercars, underwent signficant operational changes during 2016 calendar year.  A second shift was implemented in January to meet demand for Sports Series models, leading to the creation of 250 new jobs within the manufacturing, quality and logistics departments. This strategic development took capacity at the MPC from 10 cars a day to 20, supporting annual production in the region of 5,000 units.

McLaren Composites Technology Centre to bring chassis production in-house

McLaren Automotive announced in February 2017 that it will construct a new Composites Technology Centre (MCTC) that will be responsible for the development and manufacture of the Monocell and Monocage carbon fibre chassis used in future McLaren models.  Located in Sheffield, UK, the MCTC project is a partnership between McLaren Automotive, the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC) and Sheffield City Council. Combined investment of approaching £50M will create the facility and more than 200 jobs.  When commissioned and running at full production from 2020, the MCTC is targeted to deliver cost savings of around £10M annually compared to today and the chassis supply will increase average percentage (by value) of a McLaren car sourced in the UK by around 8%, from its current average of around 50% (depending on model).

		2016	2015	% change
Deliveries to customers	Cars	3,286	1,654	99%
Employed	People	1,606	1,492	8%
Sales revenue	Million GBP	649.8	450.6	44%
Operating profit	Million GBP	65.8	23.5	180%
Operating profit as % of sales		10%	5%
Profit before tax	Million GBP	9.2	5.4	70%
Profit after tax	Million GBP	7.3	2.8	161%
Capitalised development costs	Million GBP	129.1	123.9	4%
Capitalised investments as a % of T/O		20%	27%

USA - Caterham launches two new models for the US market.

British sportscar maker Caterham Cars has revealed two exciting new variants of its iconic Seven for the US market at Monterey Car Week – the Seven 480 and 360.

Increased American interest in the legendary British sportscar has sparked the launch of the two new models, which have been developed especially for the US market and will go on sale immediately.

Since January 2014, the Caterham Cars range has officially been on sale in the USA through its distributor, Superformance (www.superformance.com).

Sevens are shipped to the USA in part-built form and sold as rolling chassis via Superformance’s nationwide dealer network for customers to then complete personally.

The Caterham Seven was first created in England over 40 years ago and is now one of the most recognisable British sportscars. The Seven is famed for its distinctive, classic styling, lightweight structure and legendary performance and handling.

Both the new Seven 480 and Seven 360 models are powered by a two-litre Ford Duratec engine, with the 480 variant benefiting from slightly more power. The Seven 480 reaches 0-62 MPH is just 3.4 seconds with 237BHP and a top speed of 140 MPH.

Meanwhile, the slightly lower-powered Seven 360 reaches 0-62 MPH in an impressive 4.9 seconds with 180 BHP and a top speed of 130 MPH.

Prices start at $44,900 for the Seven 360 and $52,900 for the Seven 480.

25th Anniversary Mazda MX-5 Roadster Coupe

• 25^th Anniversary Mazda MX-5 Roadster Coupe celebrates the iconic roadster’s initial launch
• Newly developed SKYACTIV-Chassis revealed for next generation all-new Mazda MX-5
• Total production of world’s best-selling roadster passes the 940,000 landmark

Mazda Motor Corporation will unveil the new Mazda MX-5 Miata (Japanese name: Mazda Roadster) 25th Anniversary Edition sportscar today at the New York International Auto Show. The special edition model was created to celebrate 25 years since the launch of Mazda’s iconic roadster, the Mazda MX-5, at the Chicago Auto Show in the USA. Also today, the automaker will reveal a newly-developed SKYACTIV-Chassis that will form the basis of the next generation all-new Mazda MX-5.

Over more than two decades, the MX-5 has come to symbolise Mazda’s car-making philosophy and the Japanese brand’s tireless pursuit of driving pleasure. Since its launch in 1989, the Mazda MX-5 has consistently offered the kind of fun that only a lightweight sportscar can deliver, and has won a huge variety of fans from different countries, cultures and age groups. More than 940,000 units have been produced so far (to end March 2014) and the model continues to hold the Guinness World Record for the best-selling two-seater sportscar.

The Mazda MX-5 Miata 25th Anniversary Edition is a special edition model that brings together 25 years’ worth of fun shared with fans. Based on the 2.0-litre 160ps Roadster Coupe model with power retractable hard top and either a 6-speed manual or automatic transmission, it is available exclusively in Soul Red Metallic.

Meticulous attention to detail has been paid in every area of the vehicle such as the Brilliant Black-painted roof, A-pillars, and door mirror housings; the off-white leather seat upholstery and door trim, hand-finished dashboard decorative panel in Piano Black and the fitting of Bilstein dampers plus 17-inch Dark Gunmetal alloy wheels.

In New York, Mazda will also reveal the newly developed SKYACTIV-Chassis that will be used for the upcoming next-generation, all-new Mazda MX-5. The engine and chassis are exhibited together, and it will be the first time that SKYACTIV technology has been displayed in a front-midship-engine layout and rear-wheel-drive configuration.

While the next Mazda MX-5 will feature the most compact configuration of any generation of the MX-5, the engine will be located closer to the vehicle’s centre and the vehicle’s centre of gravity will be lower than in any previous Mazda MX-5. The upcoming model has been engineered and developed to achieve outstanding body rigidity and crash worthiness, while also reducing the overall weight by more than 100kg.

Mazda’s Chairman of the Board, Takashi Yamanouchi said, “The original concept behind the MX-5 was so simple; to offer the pure joy of a lightweight sportscar that moves precisely as the driver intends. While responding to increasing safety and environmental requirements, over the 25 years since its launch we have had to continually reinvent the MX-5 – far beyond simple evolution – in order to stay true to that original ideal. The history of the MX-5 is one of changing everything in order to stay the same. A history of innovating in order to preserve the ideal.”

TMW - What to look forward to in 2014

2013 was a great year for The Motoring World, Our first year, The return of Datsun and SAAB, brand new niche cars from Rolls Royce, Bentley and its return to motorsport and the Bentley Boys, the ever increasing sight of SUV's on the roads of the world, and a world that is slowly but surely creeping out of its financial situation that started nearly 5 years ago.

So what do we have to look forward to next year, an huge amount, some truly stunning supercars, more SUV's in varying sizes and engines, some famous hatchbacks, small and fun mini cars and a whole host of sports cars, below are just a small sample of some the cars that we expect to see the light of day either to buy or launched to conceptual stage.

Family cars

Audi A3 E-tron (summer 2014)
Hybrid model of our 2013 Car of the Year blends hot hatch pace with CO2 emissions of 35g/km.

Hyundai i10 (early 2014)
City car gets the latest family look and greater refinement.

Kia Soul (early 2014)
Promises improvements to refinement and driving dynamics.

Mazda 3 (January 2014)
Will be lighter than today’s 3, thanks to Skyactiv technology.

MINI (early 2014)
New model gets revised dashboard and engines and bodywork.

Peugeot 308 (January 2014)
Lighter than current car, with a much classier cabin.

Renault Megane (early 2014)
Face-lifted range gets Renault family look and new petrol engine.

Skoda Rapid Spaceback (January 2014)
Shorter version of Rapid, but has more boot space than a VW Golf.

Smart Forfour (autumn 2014)
Next-generation city car will be available with either conventional engines or electric powertrains.

Vauxhall Corsa (autumn 2014)
Revamp of current car will introduce three-cylinder engines.

Volkswagen e-Golf (summer 2014)
Golf gets a 113bhp electric motor with 118-mile zero-emission range.

Volkswagen e-Up (early 2014)
Electric Up is the quickest model in the range; 100-mile range on one charge.

Estate cars

Honda Civic Tourer (early 2014)
Swish-looking estate gets a bigger boot than rivals from Ford, Skoda and Volkswagen.

Peugeot 308 SW (autumn 2014)
Estate will get the same three-cylinder engines that are due in the hatch next year.

Seat Leon ST (January 2014)
New model will beat Astra and Focus Estates on boot space.

Executives

Audi S3 Saloon (early 2014)
Hot version of Audi’s new 3 Series rival gets 296bhp, four-wheel drive and does 0-62mph in 4.9 seconds.

Infiniti Q50 (January 2014)
G Series replacement gets new name and engines, including a V6 petrol-electric hybrid.

Mercedes-Benz C-Class (spring 2014)
All-new executive car will be offered with a hybrid powertrain.

Luxury

Audi A8 (January 2014)
Updated model gets styling tweaks and changes to engine line-up.

Bentley Continental GT V8 S (early 2014)
More powerful versions of the GT have re-tuned suspension and steering.

Tesla Model S (early 2014)
Luxury electric car will go up to 300 miles on one charge.

MPVs

Citroën Grand C4 Picasso (January 2014)
Seven-seat MPV gets more practicality and efficiency.

Small SUVs

Audi RS Q3 (January 2014)
Evoque rival gets 306bhp engine and four-wheel drive.

Ford Ecosport (spring 2014)
Fiesta-based SUV will get a 1.0-litre three-cylinder petrol engine.

Jeep Cherokee (early 2014)
Freelander rival will borrow Fiat diesel engine to boost UK sales.

MG CS  (Late 2014 Concept)
Based on MG5 underpinnings too little, too late.

Mercedes GLA (December 2013)
A new rival for the BMW X1, Audi Q3 and Range Rover Evoque.

Porsche Macan (spring 2014)
Cayenne’s baby brother will share underpinnings with the Audi Q5.

Skoda Yeti (January 2014)
Family favourite gets a face-lift, plus more standard equipment.

Ssangyong Korando (early 2014)
Bigger than the current model, but likely to get same engine line-up and two- or four-wheel drive.

Large SUVs

BMW X4 (spring 2014)
Expect ‘son of X6’ to cost around £3k more than equivalent X3s.

Land Rover Discovery (November 2013)
Face-lifted model gets better fuel economy and more equipment.

Nissan X-Trail (July 2014)
More stylish than current car; available as five- or seven-seater with two- or four-wheel drive.

Ssangyong Rexton W (December 2013)
Budget seven-seat off-roader gets 2.0-litre diesel engine.

Toyota Land Cruiser (December 2013)
Seven-seat SUV gets a face-lift and revised dashboard design.

Coupes

Peugeot RCZ R (early 2014)
The company’s most powerful production car ever gets 270bhp.

Open-tops

Audi A3 Cabriolet (winter 2013)
Longer, lower and lighter than the current car. S3 version will follow.

BMW 4 Series Convertible (early 2014)
New 4 Series loses its roof; keeps same range of engines.

Hot hatches

Seat Leon Cupra (autumn 2014)
Promises understated looks, but more power than the VW Golf GTI.

Volkswagen Golf R (spring 2014)
Choice of three- or five-door 296bhp hatch; 0-62mph in 4.9secs

Sports cars

BMW M4 (autumn 2014)
New range-topping coupé follows M4 Concept revealed in Frankfurt.

So, there you go, a taster of what is to come next year, from the small and cheap to the outlandish and uber expensive, and everything in between, but one thing for sure is that the automotive world will be a force again next year, and not just from the usual suspects, expect the Chinese to pick up momentum and make small inroads into the world auto market, but rest assured they are coming, like the Japanese in the 60's and the Koreans in the 80's with big brands behind the Chinese names and extremely healthy bank balances they can compete and will get better and will be, before long, names that trip of our tongues like Ford, Rolls Royce and Mercedes do now.

Have a great 2014.

Info courtesy of CAR MAGAZINE

Jon Mower

2013 Which? Car Survey reveals that Mazda MX-5 is UK’s most reliable new sportscar

• 2013 Which? Car Survey reveals that Mazda MX-5 is UK’s most reliable new sportscar
• Mazda MX-5 praised by magazine as the ‘automotive equivalent of a double espresso’
• Mazda3, Mazda6 Estate and Mazda2 score more than 90 percent for reliability

The Mazda MX-5 has been named as ‘Britain’s most reliable new sportscar’ in the 2013 Which? Car Survey – the biggest survey of car satisfaction and reliability conducted in the UK.

Achieving a reliability score of 97.4 percent (for models up to three years old) and 91.1 percent (models over three years old) the Mazda MX-5 beat a host of rivals to claim first and second places in the age-related categories – while earning high praise from the Which? editorial team.

“For a sportscar that will last for years and won’t cost a fortune in repairs, head to your local Mazda garage.  The MX-5 has the lowest number of faults and no annual repair costs in the first three years,” states Which?

For MX-5 models between 1998-2005 the magazine comments: “The Mazda MX-5 is the automotive equivalent of a double espresso.  Near-telepathic steering and handling make other cars (even some sportscars) feel woolly and dull by comparison.  You can pick-up a decent used MX-5 for just £1,500.  We suggest you do.”

Demonstrating the excellent reliability for which the Mazda brand is famed, other Mazda models also scored well in the Which? survey.  Mazda3 was rated as 91.9 percent reliable and topped the table for medium cars (over three years old), generating the comment: “The Mazda3 costs owners less in annual repair bills than the majority of new cars that are still within their three-year warranty period.”

The Mazda6 Estate placed second in the Estate cars (up to three years old) category scoring 97.2 percent, while the Mazda2 ranked fifth among Superminis with a 96.4 percent score.

Overall, the Mazda brand was ranked by the Which? team as equal-ninth out of 31 alongside Volkswagen in its Best Car Brands section, which merges the staff’s road-test opinions with the Car Survey results. The magazine stated: “It looks like you can’t go wrong if you buy a new Mazda.”

Jeremy Thomson, Mazda UK managing director, commented: “The 2013 Which? Car Survey findings are a wonderful endorsement of our products and our brand.  I’m sure that our all-new Mazda6 and Mazda CX-5 compact SUV with their innovative SKYACTIV technology will claim top rankings in future Which? surveys.  Meanwhile the iconic MX-5 is still winning friends more than two decades after its introduction, recently being nominated as ‘Best Convertible‘ by Carsite.co.uk and earning the title ‘Most Popular Roadster‘ in the Honest John Awards earlier this year.“

Compiled annually, the 2013 Which? Car Survey was based on information supplied by more than 47,000 drivers relating to over 57,000 cars.