A McLaren SUV appears to be unavoidable at this point, but the company will not develop it independently, according to reports.

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      McLaren's SUV, which has seen a fluctuating development timeline, may finally be approaching production. Significant changes are underway at the supercar manufacturer, based on a recent report, as McLaren prepares to integrate into a larger, more mainstream group.

      According to Bloomberg, citing “people familiar with the matter,” CYVN Holdings, the Abu Dhabi government-owned investment firm that acquired McLaren’s automotive division in December 2024, will merge it with a British electric vehicle startup called Forseven. You might wonder, “Who is Forseven?” It's another brand under the CYVN umbrella, aiming to produce “exceptional cars that combine British elegance with fierce intelligence to create a lasting legacy.” Impressive, right? The brand's website emphasizes sophistication, but currently doesn’t showcase any cars, as Forseven has yet to launch its first vehicle and hasn’t disclosed its production plans.

      One of the few confirmed details about Forseven is a technology agreement signed with Shanghai-based Nio in 2024, which grants Forseven access to Nio's EV technology. This suggests that the startup's initial offerings will likely be electric vehicles.

      Insiders informed Bloomberg that McLaren will be instrumental in guiding CYVN as it develops Forseven, which seems aimed at creating an alternative to Jaguar. The investment firm plans to “leverage McLaren’s historic brand for a new lineup of vehicles,” as stated in the report.

      Rest assured, it appears McLaren will continue its supercar production. Michael Leiters will retain his position as McLaren CEO, while former Jaguar Land Rover executive Nick Collins will head the merged entity. An announcement regarding the new structure is expected in the coming weeks, according to Bloomberg.

      Bloomberg also noted that with the upcoming merger, McLaren “is moving closer to producing high-end sport utility vehicles and sedans.” However, the report does not detail how the merger links to the SUV segment. We are aware that McLaren intends to produce an SUV; Leiters announced in 2024 the brand's interest in creating “a shared performance vehicle” with “two seats plus,” likely indicating more than just a three-seat coupe like the F1. The inference is that Forseven will design an SUV and provide McLaren access to its platform, which is the most favorable outcome. The less favorable scenario would involve the SUV becoming a product of badge engineering.

      Venturing into the SUV market makes significant financial sense. Automakers can command higher prices for SUVs compared to sedans, wagons, or hatchbacks, and SUVs enjoy strong sales. They have become the “get rich quick” models of the automotive industry, which McLaren currently needs. The company recently had to liquidate parts of its heritage car collection, sell its applied technologies division, and offload its headquarters in Woking, England, to generate funds. It now leases that premise.

      High-end brands producing SUVs are far less contentious than they once were. The original Porsche Cayenne debuted over 20 years ago, and virtually every luxury brand has since followed suit. Brands like Bentley with the Bentayga, Rolls-Royce with the Cullinan, Lamborghini with the Urus, Aston Martin with the DBX, and Ferrari with the Purosangue have all introduced successful SUV models.

      In this context, why wouldn’t McLaren want to develop an SUV? What has delayed its entry? Former McLaren CEO Mike Flewitt previously remarked to Top Gear, “There’s more than enough SUVs in the world, and we don’t need another one,” but that was back in 2018. The market and McLaren's financial circumstances have evolved since then. Creating an SUV could provide the necessary funding for the brand to continue producing exceptional supercars. The pressing question is not whether McLaren should sell an SUV, but whether it can market an SUV designed by a startup without compromising its brand image.

      At this point, it's essential to note that nothing is confirmed. We have reached out to McLaren for further information and will update this article accordingly.

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