Apple takeover of McLaren makes Project Titan sound a lot more interesting

8 years, 2 months ago - 22 September 2016, Autoblog

: "We can confirm that McLaren is not in discussion with Apple in respect of any potential .."

A McLaren spokesperson confirmed to Autoblog that these reports are untrue: "We can confirm that McLaren is not in discussion with Apple in respect of any potential investment."

A spokesperson further told Business Insider that the Financial Times' report is completely untrue and that the automaker is not holding any talks with Apple in regard to a takeover or a strategic investment.

Apple is considering buying McLaren Technology Group, a British automotive manufacturer, and is currently holding talks with the company, reports the Financial Times. According to three individuals that are currently in on the negotiations, the California-based technology group is thinking about a full takeover of the British automaker or a strategic investment. The anonymous sources claim that talks started several months ago.

A collaboration between Apple and McLaren, from the automaker's standpoint at least, is puzzling. Apple has been working on its autonomous, electric vehicle for over two years now, while McLaren hasn't revealed any interest in creating a self-driving car. McLaren, though, isn't posting healthy profits as the Financial Times claims that the automaker reported a revenue of $344 million and pre-tax losses of $29.3 million in 2014.

For Apple, a partnership with McLaren could prove to be fruitful as the company would have access to the automaker's high-tech chassis materials and engineering components, kicking the company's automotive project into overdrive. The Financial Times reports that Apple is interested in McLaren's patent portfolio, technology, and engineering prowess, which would surely help the technology company with its automotive project.

Earlier this month, Apple reportedly laid off dozens of employees to "reboot" its automotive program. While there's no word on what the "reboot" included, the Financial Times' anonymous sources claim that the deal might not go ahead because of the recent shift in Apple's automotive project.

According to the Financial Times' unnamed sources, McLaren Technology owns 80 percent of McLaren Automotive and is valued at between $1.29 and $1.95 billion. If the deal between McLaren and Apple were to go through, that would make it the technology company's largest acquisition since the company bought Beats Electronics for $3 billion in 2014.

This isn't the first time Apple invested in a company that focuses on transportation. The technology company recently invested China's main Uber competitor – Didi Chuxing.