Is Apple Interested in Buying McLaren?

Apple Inc. has entered talked with McLaren Technology Group about investing in or acquiring the British company’s supercar unit, sources tell the Financial Times.

FT’s sources say no deal in imminent for McLaren Automotive, which is 80% owned by McLaren Technology. McLaren says it is not currently in discussions with Apple about a potential investment and emphasizes any such talks would be confidential.

The newspaper estimates a buyout would be worth £1 billion-£1.5 billion ($1.6 billion-$1.9 billion). FT notes that a purchase would give Apple’s secretive electric car program instant access to McLaren’s expertise in vehicle electronics and the use of aluminum and carbon fiber materials.

McLaren sells fewer than 1,700 cars per year at prices ranging between $205,000 and $1 million or more. Last year the company generated revenue of £450 million ($584 million). But McLaren, which also campaigns a Formula One racing team, has struggled with profitability for years. It reported a pretax loss of £23 million in 2014, the last time the privately held company posted financial results.

McLaren said in March it plans to invest £1 billion between now and 2022 to launch 15 all-new cars and variants—half of them hybrids. The company also is in the early stages of developing an all-electric model.

Apple’s interest in making entire cars isn’t clear. Reports earlier this month indicated the company has shifted its focus from whole vehicles to the software required to manage a future car’s connectivity and autonomous driving capabilities. In any case, observers don’t expect Apple to step into the automotive industry until around 2020.