Monday, September 30, 2024

Aston Martin to make 1,000 fewer cars amid supply chain chaos

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Aston Martin delivered just 1,998 cars in the first half of 2024, nearly one-third fewer than the same period last year, while it also said in July that pre-tax losses widened to £216.7m, down from £142.2m.

The firm is in the middle of a multi-year turnaround effort kicked off by Mr Stroll, who became its chairman in January 2020 after taking a controlling stake in the firm.

Mr Stroll has already had to bring in new shareholders such as Saudi Arabia’s Public Investment Fund in recent years to help bankroll the carmaker.

The company has been gearing up to offer a new line-up by the end of the year. Its strategy has included boosting production of its new Vantage model, its upgraded DBX SUV and an upcoming sports car featuring a V12 engine, as well as a fourth “special” in the final quarter.

Mr Stroll has argued that the carmaker must change its strategy from selling cars wholesale back to a made-to-order model to become profitable again.

This aims to make the company more of a competitor against the likes of Ferrari and McLaren, rather than Porsche. Under Mr Stroll’s ownership, Aston’s average selling price has gone from £134,000 in 2019 to £188,000 in 2023. 

Taking into account low-volume “specials” – bespoke hypercars costing as much as £2m – the figure reached £231,000. 

At the same time, like other car makers, Aston is navigating the transition to electric vehicles. Amid softening demand, the company is due to begin producing its first plug-in hybrid, the Valhalla, later this year, with deliveries from 2025.

However, its first battery-electric vehicle will be presented in 2026 – a year later than originally planned after bosses delayed the launch – and won’t be delivered to customers until 2027.

The company announced a £2bn investment in new technology last year, with some of the funding earmarked for electrification projects.

On Monday, the company claimed it was now “for the first time in many years, in the enviable position of commencing the new year with a fully reinvigorated portfolio of ultra-luxury high performance models.”

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