Photo: Aston Martin
Ever since the beginning of December, we’ve been hearing time and again that a consortium of investors led by Lawrence Stroll is eyeing a controlling stake in Aston Martin Lagonda. Fast-forward to the present day, and it appears that the father of Racing Point Formula 1 driver Lance Stroll is willing to spend $260 million on the struggling company.
“People familiar with the matter” told Bloomberg that Geely is also interested in purchasing a piece of the pie. The priority of the man in charge, Li Shufu, is understood to be technology sharing.
In 2019, the Aston Martin Lagonda Global Holdings reported adjusted earnings of 130 to 140 million pounds sterling as opposed to 247 million in the previous year. This bit of financial turmoil has also affected the company’s shares, falling by 16 percent. In other words, the century-old British automaker is the second-worst performing stock on the FTSE 350 index.
Following the bitter news from 2019, chief executive officer Andy Palmer has confirmed that Aston Martin will seek debt funding as soon as possible in order to turn things around. All told, the Gaydon-based company’s total outstanding debt could surpass one billion pounds sterling.
It’s hard to understand how Palmer and his automaker are failing so badly considering that sales are better than ever before. Aston Martin has also received 1,800 orders for the DBX utility vehicle right off the bat, so what gives? The most simple explanation from an outsider’s standpoint is that AML has stretched itself thin with small-margin vehicles for years.
The amount of money the automaker invests in projects like the Valkyrie, Valhalla, Vanquish, and the Red Bull Racing Formula 1 team should be taken into consideration as well. Also worthy of mention, let’s not forget that Aston Martin is bound to Mercedes-Benz for infotainment systems and Mercedes-AMG for the 4.0-liter twin-turbo V8 engine of the Vantage.
If the current owners decide to get themselves out of this trouble by selling to Stroll and the Chinese, it’s also possible for Racing Point to steal the sponsorship deal that Red Bull currently enjoys from Aston Martin. On that note, do you believe that British manufacturer has what it takes to get out of this financial slump?
In 2019, the Aston Martin Lagonda Global Holdings reported adjusted earnings of 130 to 140 million pounds sterling as opposed to 247 million in the previous year. This bit of financial turmoil has also affected the company’s shares, falling by 16 percent. In other words, the century-old British automaker is the second-worst performing stock on the FTSE 350 index.
Following the bitter news from 2019, chief executive officer Andy Palmer has confirmed that Aston Martin will seek debt funding as soon as possible in order to turn things around. All told, the Gaydon-based company’s total outstanding debt could surpass one billion pounds sterling.
It’s hard to understand how Palmer and his automaker are failing so badly considering that sales are better than ever before. Aston Martin has also received 1,800 orders for the DBX utility vehicle right off the bat, so what gives? The most simple explanation from an outsider’s standpoint is that AML has stretched itself thin with small-margin vehicles for years.
The amount of money the automaker invests in projects like the Valkyrie, Valhalla, Vanquish, and the Red Bull Racing Formula 1 team should be taken into consideration as well. Also worthy of mention, let’s not forget that Aston Martin is bound to Mercedes-Benz for infotainment systems and Mercedes-AMG for the 4.0-liter twin-turbo V8 engine of the Vantage.
If the current owners decide to get themselves out of this trouble by selling to Stroll and the Chinese, it’s also possible for Racing Point to steal the sponsorship deal that Red Bull currently enjoys from Aston Martin. On that note, do you believe that British manufacturer has what it takes to get out of this financial slump?
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