China shakeup, cuts, for McLaren Automotive in sale

An Abu Dhabi company has recently finalized its acquisition of McLaren Automotive, a renowned luxury car brand, and has merged it with a British luxury start-up, Forseven, along with incorporating Chinese EV technology from Nio. This strategic move by CYVN Holdings has led to the formation of the new McLaren Group Holdings, which is expected to result in some job redundancies as part of the integration process.

As part of the acquisition, CYVN Holdings has also acquired a non-controlling stake in McLaren’s Racing business, which will now operate under the new McLaren Group Holdings. Additionally, the company has secured a majority shareholding in McLaren Licensing. The newly appointed Group CEO, Nick Collins, will oversee the operations of these entities.

While the exact financial details of the deal have not been disclosed, reports suggest that the acquisition could be valued at up to $1.2 billion. CYVN Holdings, an investment fund focused on mobility solutions, already owned Forseven, a company that has been operating in stealth mode for the past three years under the leadership of Collins. The investment fund also holds a strategic interest in Gordon Murray Technologies, following its acquisition in 2023 to enhance CYVN’s engineering capabilities.

Furthermore, CYVN Holdings has a significant investment in Nio, a prominent Chinese electric car manufacturer. This partnership will enable Forseven and McLaren to leverage Nio’s advanced software, hardware, and electrification technologies, paving the way for the development of innovative products and services in the automotive sector.

The collaboration with Nio is expected to drive McLaren Group Holdings into new product categories, with specific details set to be unveiled later this year. In parallel, the newly formed group is embarking on a turnaround plan to optimize its existing operations over the next six months, aiming to streamline processes and enhance overall efficiency.

“This marks the beginning of an exciting new chapter for McLaren as both a car brand and an automotive business. With CYVN Holdings at the helm and a diverse portfolio of complementary businesses and strategic investments, McLaren is poised to benefit from world-class engineering expertise, cutting-edge technology, and experienced leadership in the field of advanced mobility,” stated Jassem Al Zaabi, who is set to assume the role of Chairman of the combined group.