McLaren Success
#5986
Rennlist Member
Glad to see some humor in this thread...I haven't laughed this hard since I bought a Garmin Catalyst and looked at my lap times.
Last edited by dmac; 12-11-2020 at 09:16 PM.
The following users liked this post:
heshalosny (12-11-2020)
#5987
I'm not going to pretend to be an expert on McLaren, but I do understand finance, and I think what most people are mis-understanding is just how hard it is to be successful as a large, small scale manufacture.
I 100% disagree that McLaren shouldn't focus on cranking out more cars, because fixed costs are so high in this industry. Machine/tooling, the over-the-top facility itself, but probably most importantly, is the extreme R&D required for each of their cars. They have no technology partners, no platform sharing, state of the art electro-mechnicals that has to be custom tailored for each iteration, as well as nearly completely new panels between a 720S and 765LT....it's pure lunacy to try and amortize those production and development costs over small scale production that is relative low margin.....increasing the margin slightly at the expense of volume, you are going backwards because the fixed-costs are just too high.
Koenigsegg and Pagani can do it, because the margins are astronomically high, and while develpoment costs are high, production costs are low (it's actually cheaper to handbuild rather than spend hundreds of millions on a production line if you're only cranking out a few cars per year).....McLaren is stuck in between.....
Secondly, suggesting they need more special cars is exactly what is annoying to their customer, because there is always a new special Mac....they've hurt their own pricing power....they can't exclusive themselves into higher margins, or at least high enough to offset the massive development costs of all these "special" versions.
In short, it's not the per/unit profitability that's an issue, it's the high-fixed cost (F1, factory, cutting edge tech development).
^^^ you can justify all of that if there was a path to being a lifestyle brand, or as the Gen Z'ers would call it "Community"....but there is nothing to lean on there.....even Aston can't get any more runway out of Bond at this point.....Ferrari is the only successful brand in the space.....Porsche and Lambo both enjoy technology and platform support from VW for cost-control "synergies" and the brand just increases the margin.
So....IMO, there is only 1 path here, and it's focus on what their best at. Carbon Fiber......be the premium carbon fiber supplier....private jets, golf clubs, boat decks....i honestly don't know....some of it is custom solutions sold as a supplier (outsourced technology partner), but other's is premium solutions for co-branded luxury lifestyle (Taylor Made drivers with McLaren CF)......the car business then has synergies....you reduce your amortized costs somewhat, you get higher margin business in the custom supplier space, you get branding royalty (and sales) in the premium supplier space....and this all goes to help drive volumes for the non-special cars, making the business overall more profitable, and actually then being able to reward strong customers with "special" cars at margins high enough to justify their differentiated development cost. (i.e. a 720S should cost about $350k and a 765LT should cost about $575k, and they should sell 4:1 ratio)
Without know much more, a possible add-on is partnering with BMW again, being a technical performance advisor and CF supplier, and letting BMW provide engines....don't know the backstory on the partnership, but this is easiest path to credibility given legendary Mac F1 = BMW engine. F1 racing should probably be abandoned, but under my suggestions, i think profitability actually would allow for it to continue if it's an ego thing....or in the world of going where your competitors ain't, McLaren NASCAR entry in 2023
^^^ there, fixed it for them.....i'll take a used 675LT as consulting fee
I 100% disagree that McLaren shouldn't focus on cranking out more cars, because fixed costs are so high in this industry. Machine/tooling, the over-the-top facility itself, but probably most importantly, is the extreme R&D required for each of their cars. They have no technology partners, no platform sharing, state of the art electro-mechnicals that has to be custom tailored for each iteration, as well as nearly completely new panels between a 720S and 765LT....it's pure lunacy to try and amortize those production and development costs over small scale production that is relative low margin.....increasing the margin slightly at the expense of volume, you are going backwards because the fixed-costs are just too high.
Koenigsegg and Pagani can do it, because the margins are astronomically high, and while develpoment costs are high, production costs are low (it's actually cheaper to handbuild rather than spend hundreds of millions on a production line if you're only cranking out a few cars per year).....McLaren is stuck in between.....
Secondly, suggesting they need more special cars is exactly what is annoying to their customer, because there is always a new special Mac....they've hurt their own pricing power....they can't exclusive themselves into higher margins, or at least high enough to offset the massive development costs of all these "special" versions.
In short, it's not the per/unit profitability that's an issue, it's the high-fixed cost (F1, factory, cutting edge tech development).
^^^ you can justify all of that if there was a path to being a lifestyle brand, or as the Gen Z'ers would call it "Community"....but there is nothing to lean on there.....even Aston can't get any more runway out of Bond at this point.....Ferrari is the only successful brand in the space.....Porsche and Lambo both enjoy technology and platform support from VW for cost-control "synergies" and the brand just increases the margin.
So....IMO, there is only 1 path here, and it's focus on what their best at. Carbon Fiber......be the premium carbon fiber supplier....private jets, golf clubs, boat decks....i honestly don't know....some of it is custom solutions sold as a supplier (outsourced technology partner), but other's is premium solutions for co-branded luxury lifestyle (Taylor Made drivers with McLaren CF)......the car business then has synergies....you reduce your amortized costs somewhat, you get higher margin business in the custom supplier space, you get branding royalty (and sales) in the premium supplier space....and this all goes to help drive volumes for the non-special cars, making the business overall more profitable, and actually then being able to reward strong customers with "special" cars at margins high enough to justify their differentiated development cost. (i.e. a 720S should cost about $350k and a 765LT should cost about $575k, and they should sell 4:1 ratio)
Without know much more, a possible add-on is partnering with BMW again, being a technical performance advisor and CF supplier, and letting BMW provide engines....don't know the backstory on the partnership, but this is easiest path to credibility given legendary Mac F1 = BMW engine. F1 racing should probably be abandoned, but under my suggestions, i think profitability actually would allow for it to continue if it's an ego thing....or in the world of going where your competitors ain't, McLaren NASCAR entry in 2023
^^^ there, fixed it for them.....i'll take a used 675LT as consulting fee
#5989
‘McLaren is still digging out of the hole that came when they partnered with Honda. Don’t forget that Latifi Sr. owns ~10% of McLaren Group, so his son will likely be taking Lando’s seat in 2022 if his shares aren’t bought out’
That will be a tragedy as Lando is a far better driver than Latifi. Man I am getting sick and tired of billionaires buying seats for their sons; it’s ruining F1
That will be a tragedy as Lando is a far better driver than Latifi. Man I am getting sick and tired of billionaires buying seats for their sons; it’s ruining F1
The following users liked this post:
cadster (12-13-2020)
#5990
Drifting
McLaren announced an investment in the racing enterprise today AND finished third in the F1 WCC.
https://the-race.com/formula-1/how-s...odern-history/
https://the-race.com/formula-1/how-s...odern-history/
#5991
Nordschleife Master
Thread Starter
Deal was worth 325M
#5992
I’m toying with the idea of finding a good 675LT. Any advice on what to look for and who to trust in the McLaren world?
#5993
Nordschleife Master
Thread Starter
1) Had to come from a MAC dealer with more than 1000 miles and clean service history
2) Got a one year warranty with the deal, and actually had no issues. I bought a 2 year warranty once the one year expired, and I plan on keeping the car so if 3 year no issues great.
3) Spec was important as I wanted a coup in launch color chicane gray with Mclaren orange bucket seats with full leather dash and headliner (got lucky my ideal spec)
Think there are about 15 cars for sale in the US showing, and I would say about 4 are really good and the others have been out there for awhile. Also a dealer local was important to me which is near my hope. Note sure I would have purchased with no local dealer support. There’s a great spec at Orlando Mclaren that will not last long it’s a coup with a rare roof score one owner, but missing bucket seats. If I didn’t have one I would purchase the car in a heart beat. Good luck.
#5994
Originally Posted by ForeverCar
I’m toying with the idea of finding a good 675LT. Any advice on what to look for and who to trust in the McLaren world?
If you track - get a clubsport pro package with titanium roll bar. If you don't, get a roof scoop car. And if u just gonna cruise and luv the sun get a spider.
And chicane grey is the launch color and the one to get I think.
I'd have all 3, and almost added a second one, until I decided to add a 991.2 2RS. It was a big mistake
#5995
675LT’s were the better card 500 coups, and 500 spiders built. For me these where my priorities:
1) Had to come from a MAC dealer with more than 1000 miles and clean service history
2) Got a one year warranty with the deal, and actually had no issues. I bought a 2 year warranty once the one year expired, and I plan on keeping the car so if 3 year no issues great.
3) Spec was important as I wanted a coup in launch color chicane gray with Mclaren orange bucket seats with full leather dash and headliner (got lucky my ideal spec)
Think there are about 15 cars for sale in the US showing, and I would say about 4 are really good and the others have been out there for awhile. Also a dealer local was important to me which is near my hope. Note sure I would have purchased with no local dealer support. There’s a great spec at Orlando Mclaren that will not last long it’s a coup with a rare roof score one owner, but missing bucket seats. If I didn’t have one I would purchase the car in a heart beat. Good luck.
1) Had to come from a MAC dealer with more than 1000 miles and clean service history
2) Got a one year warranty with the deal, and actually had no issues. I bought a 2 year warranty once the one year expired, and I plan on keeping the car so if 3 year no issues great.
3) Spec was important as I wanted a coup in launch color chicane gray with Mclaren orange bucket seats with full leather dash and headliner (got lucky my ideal spec)
Think there are about 15 cars for sale in the US showing, and I would say about 4 are really good and the others have been out there for awhile. Also a dealer local was important to me which is near my hope. Note sure I would have purchased with no local dealer support. There’s a great spec at Orlando Mclaren that will not last long it’s a coup with a rare roof score one owner, but missing bucket seats. If I didn’t have one I would purchase the car in a heart beat. Good luck.
I hope you don’t mind more questions (posting rather than PM in case others find the information useful).
1. How does the McLaren’s bucket seat compared to Prosche’s? If it’s more narrow at the hip, I won’t fit.
2. Is service history available in McLaren systems if purchasing from a dealer?
Having a local dealer is definitely my prerequisite as well. Since we now have one, I’m tempted by adding a McLaren more and more. As long as issues get resolved with a good experience, I don’t mind downtime as much with multiple fun cars to rotate.
#5996
Think there are about 15 cars for sale in the US showing, and I would say about 4 are really good and the others have been out there for awhile. Also a dealer local was important to me which is near my hope. Note sure I would have purchased with no local dealer support. There’s a great spec at Orlando Mclaren that will not last long it’s a coup with a rare roof score one owner, but missing bucket seats. If I didn’t have one I would purchase the car in a heart beat. Good luck.
#5997
I got the #1 car for Canada that was the country's dealer owner's car so it was a press color build , but in addition to a clubsport pro package with titanium roll bar, I also installed the exposed CF louvres on a chicane grey launch color with the black/orange seats.
If you track - get a clubsport pro package with titanium roll bar. If you don't, get a roof scoop car. And if u just gonna cruise and luv the sun get a spider.
And chicane grey is the launch color and the one to get I think.
I'd have all 3, and almost added a second one, until I decided to add a 991.2 2RS. It was a big mistake
If you track - get a clubsport pro package with titanium roll bar. If you don't, get a roof scoop car. And if u just gonna cruise and luv the sun get a spider.
And chicane grey is the launch color and the one to get I think.
I'd have all 3, and almost added a second one, until I decided to add a 991.2 2RS. It was a big mistake
#5998
Burning Brakes
plus whatever tires you choose. I’m the original owner of my voodoo blue 675LT and still on original battery.
The following 3 users liked this post by fastmd:
#5999
Rennlist Member
Was gonna say, 30k for battery, tires, and fluids? No.... I'm sure the battery is a few thousand but this is not a P1 (even though it's as much fun as one 😆
And just to stave off any comments, I know the P1 battery is about 150k, it was a figure of speech.
And just to stave off any comments, I know the P1 battery is about 150k, it was a figure of speech.