- I​mage credit: CNET.com

M​cLaren have secured a $150million loan.

Y​es, this means that McLaren will live to fight another day.

1w ago

2.9K

W​ritten by: Rahil Hashmi

L​ike many other manufacturers, recently, McLaren have been facing a lot of financial issues due to the covid-19 pandemic and the future was uncertain to say the least. In fact, it was so uncertain that a lot of people, including myself, thought that it was the end for the manufacturer.

N​ow, before I get into the loan, let’s go over why McLaren were losing so much money.

S​ee, one of McLaren’s main source of money comes from the Formula 1 season but that’s been suspended. Furthermore, due to how small McLaren are, they just didn’t have the ability to keep on building cars during lockdown.

N​ow, after a while of wondering whether a $150million loan was actually going to be given, McLaren have finally secured the loan from the National Bank of Bahrain which is a big relief as I canot imagine what the car world would be like without McLaren.

T​hanks for reading!

Thank you for reading my article, feel free to let me know what you thought in the comments section below.

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Comments (6)

  • That £150m loan will still need paying back, with no real knowledge of the income from F1 and customers of McLaren cars spooked by how much their cars have depreciated, McLaren better have a good strategy. Securing the loan against collateral (historic cars probably worth £200m-£250m) is dangerous as you are reliant on the future income.

      13 days ago
    • I suppose that’s true but at least it’ll give them more time to think about how the hell they’re going to deal with all of this. Thanks for reading!

        13 days ago
    • every Company is reliant on future income, that is part of being an ongoing business otherwise you are a one hit wonder, shot in the dark etc etc.

        12 days ago
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