Shortly after announcing that it will axe 1,200 jobs, McLaren has released its financial results for the first quarter of the year – and they are bleak.
The Financial Times reports that the British car manufacturer suffered a £133 million ($163 million) loss in the first quarter, dwarfing the £24 million ($34.5 million) loss for the whole of 2019. Meanwhile, revenue for the first quarter slipped to £109 million ($134 million).
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In the first quarter, McLaren sold a total of 307 vehicles compared to the 963 it sold over the same period last year. Clearly, the coronavirus pandemic crippled demand for the carmaker’s supercars in the first three months of the year just as it did for more mainstream brands.
“We have responded quickly through cost-cutting measures and strategically reshaping the organisation and focusing on proven, high-growth revenue streams,” McLaren said in a statement issued to investors. “We have now begun to gradually recommence road car production and we look forward to getting back to the track as Formula 1 prepares for a summer restart.”
McLaren has cut close to £200 million ($246 million) in costs this year, including slashing capital spending by £110 million ($135 million) in an attempt to conserve cash. It added that it is looking at “secured and unsecured” debt financing to raise up to £275 million ($338 million) in order to “strengthen its liquidity position”.
The car manufacturer says it expects Q2 sales to be roughly in line with those of the first quarter, but is expecting a stronger Q3 and Q4. The recovery will be helped by the fact that the Speedtail, Elva, and 765LT are all sold out for 2020.
