Aston Martin boss insists company is on track despite mounting losses
The luxury car maker insists it’s on the right track even though its losses continue to mount, leaving Canadian billionaire Lawrence Stroll to wonder if he made a mistake investing in Aston Martin.
Aston Martin Lagonda insists its on the right track even though its losses continue to mount, leaving Canadian billionaire Lawrence Stroll to wonder if he made a mistake investing in the luxury car maker.
‘While in the short-term, as anticipated, we will have some difficulties due to the onset of Covid-19, having been in the business for a few weeks now I am even more enthusiastic and confident in the multi-year plan that we have set out to bring new and exciting products to market to drive demand and build the Aston Martin brand,’ Stroll said in a statement.
The car maker reported its first quarter (Q1) results on Wednesday much to the disappointment of its investors, with the company recording a £119 million loss in its first three months of trading in 2020.
Covid-19 puts added pressure on ailing Aston Martin
Aston Martin was already struggling before the Covid-19 crisis began, but the outbreak put an even larger dent in the company’s global sales figures, with it selling only 578 cars to dealers in Q1.
‘Covid-19 and the resulting global economic shutdown has had a material impact on our performance this quarter but during this unprecedented time we completed a £536 million capital raise and continued to implement our exciting strategy to reset and safeguard the long-term future of the business,’ Aston Martin Lagonda president and CEO Andy Palmer said.
‘Part of the reset includes reducing our global dealer inventory to a luxury norm to rebalance supply and demand, to build resilience and profitability for the future,’ he added.
‘Although there is still much uncertainty around the duration of the pandemic and the shape of the economic recovery, we remain focused on and excited about our plans.’
On 5 May, the company reopened its St Athan manufacturing facility, which has begun production of DBX bodies and remains on course to start full production in the weeks ahead, with deliveries starting in the summer.
Aston Martin reassured investors that its order book continues to build and extend into 2021, with particular interest paid to its newly launched Vantage Roadster.
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