McLaren to Merge with EV Startup Forseven as Part of Turnaround Plan
March 11, 2025 – McLaren Automotive Ltd is moving towards producing high-end sport utility vehicles and sedans as part of a strategic shift undertaken by the British supercar manufacturer’s new owners. CYVN Holdings LLC of Abu Dhabi, which acquired control of McLaren in December, will merge the company with its UK electric-vehicle startup, Forseven Holdings, according to sources familiar with the matter.
The state-owned investment firm aims to leverage McLaren’s esteemed brand to develop a new range of vehicles, the sources said, requesting anonymity because the plans are confidential. The company will also continue producing supercars, which are synonymous with the McLaren name.
CYVN plans to announce the merger in the coming weeks, according to some of the individuals. The enlarged entity will be led by Nick Collins, a former executive at Jaguar Land Rover, with McLaren’s current CEO, Michael Leiters, remaining at the helm of the brand’s car company, they added.
McLaren declined to provide a comment, while CYVN was unavailable. The merger with Forseven represents a pivotal step in CYVN’s strategy to reverse years of financial losses at McLaren, a renowned British sports car brand that has faced cash flow challenges.
McLaren has relied on shareholder funding on multiple occasions in recent years. These financial difficulties have been compounded by delays in the launch of the Artura model. The manufacturer also sold part of its heritage car collection, divested its advanced technologies arm, and completed a sale and leaseback agreement for its Woking headquarters.
While other sports car brands like Ferrari, Lamborghini, and Porsche have introduced SUVs to capitalize on growing demand, McLaren resisted this move for several years, prioritizing performance cars. Former CEO Mike Flewitt had previously stated that McLaren would never build a larger car and that he believed there were “more than enough SUVs in the world and we don’t need another one.” Leiters, the current CEO, confirmed plans to enter the SUV market last year.
Details regarding Forseven are limited. The company presents itself as a British luxury car company but has not yet unveiled any model plans or provided a timeline on when it intends to begin selling cars. In February 2024, Chinese EV maker Nio Inc. announced it had entered a technology licensing agreement with Forseven. CYVN is also an investor in Nio.
In addition to purchasing the automotive business from Bahrain’s Mumtalakat Holding Co., CYVN also acquired a minority stake in the McLaren F1 team, which is experiencing success following its constructors’ championship win last year, the first since 1998.
