McLaren Automotive has announced a £500 million expansion of its UK operations that is expected to create 1,000 new jobs by 2032, in a major investment spanning vehicle production, engineering and advanced manufacturing.
The British performance-car manufacturer will expand its research and production operations in South Yorkshire and open a new vehicle production facility elsewhere in the UK, while committing to keep the design, engineering and manufacturing of its current and future models in Britain.
The Government says the investment could also support up to 3,000 additional jobs across the wider automotive industry and supply chain.
McLaren to invest £500m in Britain
The expansion will increase McLaren's manufacturing, engineering and research capabilities across the UK.
Existing operations at the McLaren Production Centre in Woking and the McLaren Composites Technology Centre in South Yorkshire will play central roles in the programme.
McLaren has also established a new design and innovation centre in Bicester and an engineering, testing and vehicle-development operation at MIRA in the Midlands.
The company says the investment will provide the platform for a new generation of vehicles while strengthening its expertise in carbon fibre, lightweight technology and advanced manufacturing.
1,000 new jobs by 2032
McLaren expects the programme to create 1,000 new UK jobs by 2032, including positions in Woking and South Yorkshire.
The expansion will also include new apprenticeship opportunities as the company increases its manufacturing workforce.
According to the Government, the investment could unlock as many as 3,000 additional jobs across the automotive sector and its supply chain.
Those wider employment figures are projections associated with the investment rather than jobs that have already been created.
Future McLaren engines to be built in-house
One of the most significant changes will see McLaren manufacture future engines in-house for the first time in the company's history.
The programme includes plans for new engines and transmissions as McLaren develops its future powertrain strategy.
The company will also increase vehicle-assembly capacity through a new UK production facility.
McLaren says retaining more of its engineering and manufacturing capabilities in Britain will protect intellectual property and strengthen its long-term UK industrial base.
McLaren confirms performance SUV
The investment will also support a significant expansion of McLaren's model range, including a performance SUV.
The move will take the company into a new vehicle category as it seeks to build a broader product portfolio around its traditional supercar business.
McLaren says it intends to keep the design, engineering and production of both its existing cars and future models in the UK.
Burnham hails 'doubling down on Britain'
Prime Minister Andy Burnham welcomed the announcement, describing it as McLaren “doubling down on Britain”.
He said the investment would keep the design, engineering and construction of future McLaren cars in the UK while creating skilled jobs and apprenticeships.
The Government is presenting the announcement as evidence of its wider strategy to increase advanced manufacturing and reindustrialise communities across Britain.
First Secretary of State Louise Haigh and Business Secretary Jonathan Reynolds are visiting McLaren's Technology Centre in Woking on Wednesday to mark the announcement.
Government points to £4bn automotive programme
The Government says McLaren's decision builds on £4 billion of public investment committed to the wider automotive sector through to 2035.
That support includes programmes intended to encourage investment in vehicle manufacturing, batteries, supply chains and zero-emission technologies.
Advanced manufacturing is one of the sectors identified in the Government's Modern Industrial Strategy.
McLaren says investment will strengthen UK competitiveness
Nick Collins, chief executive of McLaren Group Holdings and McLaren Automotive, said the company was investing both in McLaren's future and in advanced manufacturing in the UK.
He said the programme would allow McLaren to develop its next generation of cars while strengthening skills, employment and Britain's global competitiveness.
The investment represents a long-term commitment by the company and its shareholder to expand McLaren Automotive's British operations.
While the Government is presenting the announcement as a vote of confidence in its industrial strategy, the £500 million is a private-sector investment by McLaren rather than a new £500 million Government spending commitment.