McLaren may mortgage historic car collection, factory to generate funds: Report
Covid-19 pandemic has had a deep and far reaching impact on car makers across the globe with losses continuing to mount exponentially for most. Such has been the devastating effect of situations arising from the disease that McLaren is now reportedly considering mortgaging its historic car collection and factory in Woking to secure around $360 million in funds.
According to a report in UK's Sky News, McLaren is looking at a host of options and while the company has not revealed exact details of these options, it may be close to mortgaging its historic car collection and its Technology Centre headquarters. McLaren's historic car collection includes race winners from F1 events in the 1980s and 1990s as well as Le Mans. Some of these cars are worth millions of dollars while the factory itself may be valued at upwards of $300 million.
McLaren's earnings from sale of road cars as well as from its F1 business has reportedly taken a massive hit in recent weeks. ""Like many other British businesses McLaren has been severely affected by the current pandemic and we are therefore exploring a variety of different funding options to help navigate these short-term business interruptions," a spokesperson of the company told BBC.
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McLaren is reportedly banking on sales to pick up in times to come and that would provide it with the opportunity to repay the funds borrowed. The company employs around 4,000 people in the UK and there are speculations that it could make its way into the stock market.
McLaren is not the only one licking its wounds in current times with iconic car makers as well as mass-market players struggling from plummeting sales which could continue to remain stagnant at the bottom for most parts of 2020. While some manufacturers are actively considering cost-cutting options, there is widespread speculation about possible layoffs, increased borrowings and other measures.