McLaren CEO: Hypercars are priceless brand builders

The Senna hypercar was priced at 750,000 pounds (860,000 euros) and limited to 500 examples.

Mike Flewitt, 56, joined McLaren Automotive in 2012 as chief operating officer before being made CEO in 2013. Prior to that he had spent nine years in manufacturing roles at Ford, rising to vmanufacturing chief for Ford of Europe. The British-born Flewitt also previously worked at Rolls-Royce and Bentley. Flewitt spoke with Automotive News Europe Correspondent Nick Gibbs.

What influence do hypercars such as the Senna have to your bottom line?

They will earn a couple of times a contribution of a 720S [supercar] but not the multiple you might expect at that price point [750,000 pounds or about 860,000 euros]. They are very expensive cars to design and develop, and you have very limited volume [500] to recover that investment. The total life cycle of the 720S family is maybe 5,000 to 6000 cars.

Are they valuable in other ways, too?

They are hugely valuable from a brand and communication perspective. The Senna sold out before we showed it to customers in December, but despite that we worked on publicizing that car. Everything that car says about us is what we want to communicate about the brand.

Given the amounts its predecessor, the P1, is getting on the used market, were you tempted to push the Senna’s price higher?

When we do these ultimate projects, fixing the volume and price is very difficult. It’s not that I charge what I feel like and hope it will appreciate and therefore it doesn’t matter. Maybe there are people who think like that, but we don’t. I’m delighted when they do appreciate; that is fabulous for the customers. But I don’t sell them as an investment asset.

Mike Flewitt: "We are trying to build the best driver's car in the world."

How did you know you could charge 2 million pounds for the BP23?

You look at what comparable cars are costing, and you look at what you have been able to price other cars at, and you make a considered judgment. There is no formula and science. It’s a really big price, and I feel we can deliver a car that justifies that price.

What is fueling growth in this market?

There are a lot more people out there with the ability to buy them. The cars are holding value or increasing. And the last thing is that these cars are very accessible to drive. A Lamborghini Countach and Ferrari Daytona are wonderful, wonderful cars, but you can’t just get into them and drive away.

Are the track days a big money maker for you?

I task the team to break even on these driver events, but they are done as part of the relationship. We are trying to build the best driver’s car in the world and build the best relationships with our customers. It’s not a case of selling a car and saying, “See you in 12 months’ time when we service it.” We want to give them an opportunity to get to know us.

You can reach Nick Gibbs at ngibbs@crain.com.