Although the F1 team is having a tough time at the moment, McLaren Automotive, the sports car production arm of McLaren Group, indicated yesterday that the future was bright. Since the launch of its first roadcar in 1992, the aptly named F1, McLaren has continued to develop models, with over 20 prototypes now in its stable, including the P11 (pictured above). Yesterday’s anouncement that it was seeking a further £250 million investment with a view to increasing car production to 1,000 vehicles per year, was welcome news for a sector that has recently undergone a dramatic fall in sales (some 30.5% fall just in March). To my mind, it the type of ‘high technology’, niche engineering business that should have a bright future in Britain. It relies upon being the best, having honed its work practices and attitudes in the very competitive environment of F1 racing. Sadly, the days of mass car production being a long-term viable business model in Britain have probably passed. Not only are cars likely to become seen as luxury items as a consequence of the increasing price of oil, the worsening problem of congestion and the undoubted adverse environmental impact, makes mass car production a far from attractive investment for the future.
What is clear is that the business of mass car production is better suited to those parts of the world with low labour costs. That is why Tata Motors of India recently commenced production of the World’s cheapest production car, the Nano. Top-end cars, however, do have a future in the UK, as they are, by definition, a luxury item requiring the input of specialist engineers. And this is where England, in particular, is in a strong position. It has always taken a very active part in F1 motor racing, and hence, many teams are based here, not least of which McLaren, who are situated in Woking, Surrey. Although there have been many recent redundancies in the F1 sector, including from the newly successful Brawn team, the expertise of F1 racing remains predominantly in this country. We should not waste this talent. Britain’s long-term economic prosperity will be aided by nurturing and protecting the intellectual capital of engineering firms like McLaren. Suffice to say, Britain would be better off supporting the Brawn of the future rather than the brawn of the past.

