McLaren, the British carmaker best known for its high-performance sports cars and Formula One racing success, is preparing to build its first-ever SUV. This marks a significant shift for the company, which has spent its 63-year history focusing on racing and supercars. The new SUV is part of a £500 million investment by CYVN Holdings, an Abu Dhabi government-owned investment firm that took over McLaren in 2023. The investment is expected to create 1,000 new jobs, bringing the company's total workforce to 2,500. A new factory is also planned, with Sheffield—home to McLaren's carbon-fibre production plant—being the preferred location over the company’s headquarters in Woking. McLaren’s CEO, Nick Collins, explained that the decision to build an SUV was driven by the growing number of people who admire the brand but have never owned one of its cars. He said the two-seater sports cars, while iconic, were not practical for many potential buyers. “It’s quite difficult if you have to decide which one of your kids you want to leave behind at home,” he noted, highlighting the need for a more family-friendly option. The SUV is seen as a way to expand the company's customer base beyond its current niche of supercar enthusiasts. The move comes as part of a broader strategy to turn around McLaren Automotive, which has struggled financially in recent years. CYVN Holdings has committed to investing $2 billion (£1.4 billion) in the company over five years, despite it being unprofitable. McLaren has also merged with Forseven Holdings, a British electric vehicle startup, but has no immediate plans to produce its own electric cars. Collins said customers are not demanding EVs, and the company is not currently pursuing them, even though the UK government has mandated that all new cars be zero-emission by 2035. The new SUV is expected to be priced in the same range as luxury competitors like the Bentley Bentayga, Aston Martin DBX, and Lamborghini Urus, all of which start above £200,000. Michael Straughan, McLaren’s chief operating officer, said the SUV could potentially double the company’s annual sales, which currently stand at around 3,000 cars. While the final location of the new factory has not been confirmed, Straughan called Sheffield “the jewel in the crown” of McLaren’s manufacturing capabilities. The move is also seen as a strategic boost for the UK, with the prime minister, Andy Burnham, welcoming the investment as a sign of the company's commitment to British industry.