Earlier this week, reports emerged that Renault was facing major financial worries. Now, the bad news isn’t stopping there because similar reports are coming from McLaren and Aston Martin. Apparently, the two British automobile giants sought financial aid from the government, but were denied.
According to the AD, McLaren needs no less than 280 million euros to survive the financial impact the coronavirus crisis. With the 2020 F1 season on ice, the Formula 1 team and the parent company misses out on F1 revenues. In addition to that, sports car sales have plummeted since the coronavirus pandemic struck.
Initially, McLaren’s plan involved mortgaging their historic Formula 1 car collection and its own head office. Unfortunately, that plan got shot down, since bondholders announced that that idea was executed in 2017. This was when they had to buy out the contract of former team boss and shareholder Ron Dennis.
How bad is the situation at McLaren and Aston Martin?
As per the Financial Times, McLaren’s sports car production has been stagnant since March. The British manufacturer initially planned to resume normal service again in April. Unfortunately, it does not seem like that plan has taken flight, because McLaren approached the government for aid.
Sadly for them, government support never came and shareholders had pumped in £300 million into the company. To make matters even worse, the £300 million is not enough and McLaren needs more to stay afloat.
McLaren is not alone in its suffering from the crisis, because Aston Martin is also in the same boat. The brand was already in trouble and pinned a lot of their hopes for its first SUV. Even Lawrence Stroll’s significant investment does not seem to be enough for the iconic marquee to sustain itself. In other words, there is a real danger of both companies going under and the 2020 F1 season cannot resume quick enough for them.