McLaren seem to be in trouble yet again, but this time it is something unrelated to F1. The McLaren group has been approached by unnamed UK government authorities in connection with an ongoing investigation.
It is being reported that the investigation could cause damage to their profits and subsequently their finances. Investigators are looking into some third-party companies and the executives handling them and other persons related to the group.
McLaren have supposedly been aware of the investigation for more than an year now but the details have been released to the media only in the past couple of days. They are well-known to keep their operations secret, especially in F1 because of the competition.
They chose not to provide any statements to the media. “We are not in a position to comment further for legal reasons”, said a spokesperson for the group.
McLaren suffered a £66m pre-tax loss, a massive fall from a £1.3m profit earlier reported. It was said to be caused by lower car production rates because of applying new processes to the operation.
They were supposedly advised by their counsel that neither them nor their subsidiaries are the at the actual center of the investigation but they used the accounts nevertheless to reveal it could ruin them, financially speaking.
The financial damage aspect is said to be applicable whether or not they are being investigated as the negative publicity which could be generated because of any executives of theirs could play a huge role in it.
They expected the fallout to ‘adversely affect their brand and reputation’. The prediction they made has seemingly started as their revenues fell from 3pc to £871m.
Considering that they have been under investigation for a year now, they have done a commendable job of keeping it under wraps and delaying the fallout as long as they could. Everyone will be hoping for it to end soon.