McLaren CEO Michael Leiters has described his role as the “most exciting job in the automotive industry” despite the challenges he faces. Since taking on the position in July 2022, Leiters has been focused on improving the quality and reliability of McLaren cars, strengthening the supply chain, and delivering the Artura hybrid supercar production. In a recent interview at the Goodwood Festival of Speed, Leiters discussed the progress he has made in transforming McLaren’s culture and internal structure.
One of the key changes Leiters has implemented is a shift in the company’s culture, with a focus on output, efficiency, and customer experience. He has increased the engagement of McLaren employees and improved communication within the organization. Additionally, Leiters has streamlined the internal structure by reducing the number of company management layers from 11 to five. This has allowed for more direct communication throughout the organization.
However, the financial aspect of McLaren’s transformation has been the most challenging. The company is still operating at a loss, despite an increase in revenues in the first quarter of 2023. The ongoing transition from the 720S to the 750S on the production line and the Artura production not yet reaching full capacity have contributed to these financial challenges. Leiters emphasized that recapitalizing the business with existing shareholders is currently the top priority.
Leiters acknowledged that revenue generation is a significant challenge for McLaren at the moment. However, he is determined to prioritize quality over quantity, particularly when it comes to the Artura. Rather than increasing production capacity, McLaren is focusing on ensuring a positive customer experience and avoiding any potential risks that could damage the brand’s image. Quality improvements include involving more people and areas of the business in the design process and working closely with suppliers to prevent problems before they arise.
Despite these challenges, McLaren remains independent, and Leiters stated that external investment is not currently part of the recapitalization process. The company will continue to navigate the supply chain independently, despite the logistical hardships faced by many suppliers. Leiters emphasized the importance of building strong relationships with suppliers to ensure mutual support in difficult situations.
Reflecting on McLaren’s progress over the past year, Leiters acknowledged the deep-rooted structural problems within the company. However, he remains focused on resolving these issues and developing innovative cars and technologies that can make his role the most exciting in the industry.
In conclusion, McLaren CEO Michael Leiters has embraced the challenges of his role and is determined to transform the company’s culture, improve financial performance, and prioritize quality over quantity. Despite ongoing difficulties, Leiters remains optimistic about McLaren’s future and is committed to delivering exceptional experiences for customers. With his strategic vision and dedication to excellence, Leiters is poised to lead McLaren into a new era of success in the automotive industry.