Aston Martin has come a good distance because it was featured as James Bond’s weapon-laden sports activities automobile within the film “Goldfinger.” It makes among the world’s most envied and admired autos, however that is not serving to it financially.
Mounting losses, falling gross sales and the devastating impacts of the coronavirus, which has rocked the worldwide economic system and dampened auto gross sales, have fueled worries Aston Martin could go bankrupt for the eighth time within the firm’s 107-year historical past.
Aston Martin misplaced $83.6 million in 2018 and $144.four million in 2019, in accordance to FactSet. Sales fell 9% in 2019 in contrast with the prior yr.
Then the coronavirus hit. Aston Martin tried to minimize prices by shrinking its workforce however its inventory has tumbled. As of Oct. 22, Aston Martin Lagonda shares have been buying and selling at 49 cents a share, down significantly from its almost $25 IPO float value in October 2018.
And in late May, it tapped Tobias Moers, former head of Mercedes-AMG, the profitable high-performance sub-brand of luxurious German automaker Mercedes-Benz, as its new CEO.
Aston Martin’s plan to save itself rests largely on the small impartial British brand’s first sport utility car. The Aston Martin DBX is a bid to sustain with a altering automotive market and, hopefully, reverse the corporate’s punishing losses.
The DBX could current an ideal alternative for Aston Martin. Though it is a comparatively late entry to the phase, SUVs are fashionable at each value. Other manufacturers have seen super success with them.
German sports activities automobile maker Porsche, for instance, sells extra Cayenne SUVs than all of its extra conventional automobile fashions mixed. Add Porsche’s smaller Macan SUV to the tally and the distinction is much more staggering. This, for a brand many within the trade thought risked angering its fan base by deviating from its extra conventional specialty in small sports activities automobiles.
If the DBX succeeds, it might give Aston Martin the monetary cushion it wants to preserve making the grand tourers and sports activities automobiles beloved by so many, however purchased by few.