Aston Martin’s losses worsened in the first part of 2024, when the luxury carmaker set aside more than £2bn to help it transition to electric cars and said its new top executive would sign up faster than what was expected.
The British company delivered just 1,998 cars in the first part of 2024, almost a third less than in the same period last year, while pre-tax losses widened to £216. 7 million, compared to £142. 2 million.
Aston Martin is in the midst of a multi-year turnaround effort unveiled through Lawrence Stroll, the billionaire he presides over in 2020 after acquiring a majority stake in the company.
Stroll has already had to recruit new shareholders, such as the Saudi Public Investment Fund, in recent years to finance the automaker.
He also tried to raise Aston Martin’s profile by introducing the logo into Formula 1; The racing business was separate from the indexed company.
Stroll said Wednesday that the luxury automaker is at a “pivotal moment” as it transitions to a new product line and follows the rest in their transition to electric vehicles.
Aston Martin plans to invest £2 billion through 2027 in the “transition to electrification”, while phasing out a diversity of older models and launching several new ones.
This includes replacing its aging Vantage sports car with an edition and introducing the DBX707 luxury SUV, deliveries of which began in recent months and will increase in the second part of the year.
New chief executive Adrian Hallmark, the former Bentley boss, will now join the organisation on Sept. 1 and will be tasked with returning Aston Martin to profitability amid the changes.
Hallmark will also be tasked with reviving the company’s declining percentage price, which has lost a third of its price this year. Aston Martin shares were up 11% on Wednesday morning.
Stroll said: “As we embark on an exciting time in 2024, Aston Martin finds itself at a pivotal moment in its journey, with our immense product transformation supporting volume expansion and the generation of sustainable loose cash and positive effects later this year. that we have full confidence in achieving.
“In line with previous guidance, our first-part execution focused on the successful delivery of our new Vantage and updated DBX707 and we remain on track to deliver strong parts performance for the time being. »
Revenue fell 11% to £603 million, above analysts’ expectations. In fact, the average advertising value of the company’s cars increased by 29% to £274,000.
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