McLaren's Financial Situation

[DjordjeC63]

Who could save McLaren? I don't know.

"Hey Mercedes"...

Say no more...

 

[Cashmere]

What I do not understand is why the need or obligation to generate so much debt in some of these companies, if we know that they generate profits of tens of billions annually (and they are precisely the ones that have the most debt)

In the case of Daimler, Toyota, VW, BMW, the value of the assets are similar to the debt value and the brand value exceeds the same and it is what the company is actually "worth" debt free

Debt is a wonderful thing to have when revenues are soaring. But what happens to debt when your revenues suddenly collapse?

 

[A.P.]

I thought Aston Martin was worse off, but at least they aren't selling their HQ yet.

 

[SCOTT27]

Industry rumours point to a Chinese company.
As they have "suggested" to Berlin. Industries can be provided with "able help"

 

[Yaz]

Time for Daimler to buy them and develop an SUV/crossover.

 

[Wunderkind]

Industry rumours point to a Chinese company.
As they have "suggested" to Berlin. Industries can be provided with "able help"

Hahaha, nobody is interested in McLaren so fingers are pointing conveniently at the acquisitive Chinese groups.

No, I don’t think any of the Chinese automotive groups are interested at McLaren. It offers nothing to them. The poisonous diplomatic and commercial relationship between China and the UK at the moment makes this deal a non-starter.

Maybe Ron Dennis is interested in saving McLaren, but 9-digit funding is difficult to find atm.

I think McLaren might attract more interest from Silicon Valley tech names like Apple, Google, Tesla (just don’t take Tesla shares).

 

[KiwiRob]

Yupp. Not many manufacturers can charge €15 for a pack of three pencils in yellow, white and red or €20,000 for a stripe on paint on a car.

Although Mclarens depreciate steeper the netcost over buying a flagship Ferrari could be the same. In order to be granted the privilege to factory order a Pista or TDF you will have to ladder up by buying 3-4 other Ferraris which you will likely lose some money on.

If I fancy a 600LT, I can walk into a Mclaren dealer and order one or buy a used one without paying over list price.

Ferrari is a bit like Rolex, to get the watches you want ie the desirable stainless steel sports watches you have to buy the several you don't want from an AD before they will sell you the good stuff. McLaren is like Omega technically far superior and available when you want to buy one.

They are selling it with the condition that they will lease it from the new owners. Sometimes businesses sell assets and lease them back as a way to free cash.

Mclaren will still remain the tenant of the HQ after the sale.

This is standard practice for the airliner industry, they buy aircraft, some will be on-sold straight to the leasing companies other will remain in company ownership.

 

[KiwiRob]

The beginning of the end?

View attachment 521075

McLaren puts iconic Woking HQ up for sale for £200m

Sports car maker McLaren has put its iconic headquarters near Woking in Surrey up for sale in a bid to shore up its balance sheet.

www.cityam.com

I would be laughing long and hard if Ron Dennis bought the factory.

 

[Sunny]

Doubt it.
View attachment 521216

Funny bit I heard (didn't confirm it myself but have no reason to doubt) - if Daimler kept the 9% Tesla shares it had, it would be worth more than Daimler itself now.

I think McLaren might attract more interest from Silicon Valley tech names like Apple, Google, Tesla (just don’t take Tesla shares).

Why?

 

[dalab]

Funny bit I heard (didn't confirm it myself but have no reason to doubt) - if Daimler kept the 9% Tesla shares it had, it would be worth more than Daimler itself now.

Just the other day I read what happened because it made me curious.

Daimler bought 50 million dollars in shares when Tesla was still in "diapers" with that first roadster derived from the Lotus, which helped other investors also trust and capitalize a lot, in the first strong increase in value that there was I think was 2014/2015, Daimler sold its shares for 750 million, earning a handsome 700 million and QUOTE Zetsche: "It was the most profitable investment Daimler has ever made"

The point is that if they had kept and sold them a few days ago, those 50 would be worth QUOTE: around 7.5 Billons, covering all the losses from the coronavirus more than enough and exceeding the miraculous dreams of anyone, but it is not that in 2014 they did a bad business

 

[Centurion]

Ferrari is a bit like Rolex, to get the watches you want ie the desirable stainless steel sports watches you have to buy the several you don't want from an AD before they will sell you the good stuff. McLaren is like Omega technically far superior and available when you want to buy one.

Mclaren do have a laddering model but it's not working well if preferential existing customers say no to buying a limited edition model, resulting in several of them sitting on dealer lots below list price.

 

[Wunderkind]

Dyson or Ineos maybe interested?

 

[Cashmere]

Just the other day I read what happened because it made me curious.

If you're interested in hearing the story of how they built the concept car for Daimler and secured the investment, the entire story is fascinating - here's the excerpt below.

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