McLaren CEO urges U.K. to invest in electrified performance car powertrains

Michael Leiters, CEO of McLaren Automotive, believes the U.K. risks losing its chance to become a global leader in electrified performance car powertrains due to a lack of investment. He shared his concerns at the sixth annual conference of the Society of Motor Manufacturers and Traders (SMMT) International Automotive Summit. Leiters highlighted that Britain’s storied history in supercar production and motorsport presents a significant economic opportunity, but only if there is sufficient investment in domestic battery supply chains.

The untapped potential of the U.K. automotive industry

Leiters emphasised that the current U.K. supply chain is not prepared to meet the unique demands of electric supercars. He called on the new government, set to take office on Thursday, to provide a strategic roadmap for investment in future powertrain technologies. "A clear industrial strategy, led by investment in the domestic supply chain, will deliver growth, support jobs, help decarbonise the economy, and secure a vibrant future for the U.K. performance-car industry," Leiters stated. "It’s time we regained confidence in our sector by investing in a world-class domestic supply chain to support the development of tomorrow’s high-performance vehicles."

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Leveraging heritage for economic growth

Leiters cited McLaren's ability to leverage Britain’s rich history in performance cars to command premium prices for its products. He noted that the gross value added (GVA) of McLaren employees is 51% higher than the average in the U.K. automotive manufacturing sector. This success is bolstered by the fact that 90% of McLaren’s supercars are exported, bringing significant revenue from abroad.

However, the lack of a robust supply chain for electrified powertrains is a major obstacle preventing the U.K. from fully exploiting its automotive manufacturing strengths. Leiters pointed out that the nation’s insufficient battery manufacturing capacity could result in missed economic advantages.

The critical need for battery manufacturing

Leiters underscored the critical need for battery manufacturing by illustrating the content disparity in McLaren’s hybrid and potential electric vehicles. "Today, our hybrid McLaren Artura powertrain has 64% U.K. content. If this car were a pure EV, the U.K. content of the powertrain would drop to 13% because we cannot currently source the relevant componentry in the U.K.," he explained. This stark contrast highlights the urgent need for a domestic supply chain capable of supporting high-energy-density cells for electric vehicles.

Broader implications for advanced manufacturing

Leiters also pointed out that developing a thriving U.K. supply chain for cutting-edge battery technology would not only benefit supercar production but also other advanced manufacturing sectors. "A thriving U.K. supply chain specialising in cutting-edge, high-energy-density cells would support supercar production as well as other advanced manufacturing needs, such as vertical take-off aircraft and drones," he said. This broader application underscores the importance of investing in domestic battery manufacturing capabilities to maintain the U.K.’s competitive edge in various high-tech industries.

The path forward

The call for investment and strategic planning is crucial as the automotive industry undergoes a significant transformation towards electrification. By addressing the current supply chain inadequacies, the U.K. can position itself as a leader in the global market for electrified performance cars and beyond. This requires a concerted effort from both the government and private sectors to invest in the necessary infrastructure and technology.

Leiters’ remarks at the SMMT Summit serve as a wake-up call for the U.K. automotive industry. The potential economic benefits of becoming a leader in electrified powertrains are immense, but they can only be realised through strategic investment and innovation. The upcoming government has a pivotal role to play in charting this course, ensuring that the U.K. does not miss out on this golden opportunity.

McLaren's CEO has highlighted a critical juncture for the U.K. automotive industry. The future of high-performance, electrified vehicles hinges on the nation’s ability to invest in and develop a robust domestic supply chain. This investment is not only essential for the automotive sector but also for the broader landscape of advanced manufacturing, securing the U.K.'s position as a global leader in innovation and technology.