Apple and McLaren

Water Cooler Investing
#1

As many of you may have heard, Apple plans to buyout the British car company McLaren.

I believe that its an attempt to get at the tax money it owes to the EU by investing in a European company.

Also, Apple and Mclaren have similarities when it comes to timing and frequency of their product releases and their attempt to reduce their employee footprint.

Some sources value Mclaren at roughly $1-1.5 bn, and Apple’s tax liability is about $16bn.

What are your thoughts on this?

#2

It is unlikely that taxes are the only reason Apple would do this, or even the primary reason. Apple needs to absorb a lot of institutional knowledge when it comes to building cars, and this is one way.

#3

Its interesting certainly. Obviously McLarens engineers are fully capable of making a regular car but its not where their expertise lies. Who knows how designing & selling super cars translates to a mass market vehicle