Apple Reportedly in Talks to Buy McLaren, Automaker Denies it

Why spend a fortune building an automotive brand from the ground up when you can just buy an existing one? That’s a question Apple might have been asking itself if a report from the Financial Times were true, though the automaker in question says it isn’t. Citing sources close to the matter, the paper says Apple has approached McLaren about a potential acquisition.

The deal to purchase McLaren Technology Group, the parent company of McLaren Automotive, would be worth roughly $1.3-2 billion. Three people with knowledge of the negotiations say the talks actually began several months ago. It’s unclear how that timing matches up with Apple’s reported shift in direction for the highly secretive “Project Titan,” which is believed to be developing autonomous cars. As we previously reported, Apple was said to be refocusing its strategy, laying off dozens of workers involved with the project. Bob Mansfield, the engineer that led development on the iPad, MacBook Air, and Apple Watch, was brought back on to head Project Titan, replacing Steve Zadesky who left the company for personal reasons. Apple has been rumored to be looking for a legacy automaker to partner with.

McLaren may be a boutique sports car maker, but it has expertise in lightweight materials such as carbon fiber and aluminum. McLaren also has extensive engineering experience with its background in Formula 1, and has a state-of-the-art factory in Woking, England, where the 570, 650S, P1, and other exclusive sports cars are produced, though not in great numbers. FT reports that McLaren produced 1,654 vehicles last year and generated $584 million in revenue.

Purchasing McLaren would be a pretty big sign that Apple does indeed plan on getting into the car business. However, McLaren flat out denies the entire thing. In a statement, a McLaren spokesperson said, “We can confirm that McLaren is not in discussion with Apple in respect of any potential investment.”

Well, there goes that rumor. Still, we wonder what an Apple-McLaren tie-up might have yielded. Would McLaren have made a good automotive partner for Apple? If not, which other automaker would be a good match for the tech giant? Tell us in the comments below.

Source: Financial Times

The post Apple Reportedly in Talks to Buy McLaren, Automaker Denies it appeared first on Motor Trend.

from Motor Trend http://ift.tt/2d9mk5Y