Photo: Aston Martin
Aston Martin is not making an SUV because the brand wants to swim in the profits, the reason is merely to just stay afloat.
Even though Aston Martin is one of the most prestigious names in the automotive business, and in spite of the fact that its recent tie-up with Mercedes-Benz AMG has resulted in better cars, the company is actually not making enough money to support itself just by selling sports cars.
It apparently posted a $17.4-million loss in the third quarter of 2019, and it has lowered its initial yearly sales target of 6,300 - 6,500 to an unspecified value, in the face of lower-than-expected demand for the Vantage. Vehicle sales in the Q3 2019 fell by 16 percent compared to 2018 too.
Aston Martin shares went down by a massively this year its market value shrunk to $1.22-billion (it was valued at $5.5-billion in October, 2018). But this slump may not last long, as the automaker is banking on the release of its first ever SUV, the Aston Martin DBX.
The company is putting the finishing touches on its second production facility, in St Athan in the U.K. where it plans to build the SUV. The maximum production capacity for this new plant is estimated at around 5,000 vehicles per annum at first, but it is expected to be increased to 7,500 two years after its opening.
And it hopes to sell a lot of these high riders - the aim is to more than double its yearly sales target (which, as previously mentioned, won’t be met in 2019), increasing it to 14,000 vehicles.
The new plant will also build two Lagonda-badged electric vehicles, one of which will be a battery-powered SUV, and these two models are expected to account for around 2,000 annual vehicle sales by 2023.
If this plan backfires, Aston Martin might be in a bit of trouble, since it not only invested in developing the DBX, but it also built a new factory to make it - yet it seems to be confident its first ever SUV will prove successful, and first signs in this respect are good.
Industry analysts seem optimistic about its prospects and right now, Aston is looking to secure pre-orders with the aim of having 1,400 of them by June, 2020. If this target is met, the company will take advantage of an additional $100-million in financing from its backers.
So, does the DBX have what it takes to upset the balance of power in the newly created super-SUV segment, now dominated by the likes of the Bentley Bentayga or Lamborghini Urus? Well, it will be priced at $189,000 in the U.S., so it’s a direct rival for both aforementioned vehicles, yet it will be closer to the Lambo in terms of philosophy.
Whereas the Bentley Bentayga is very fast, but ultimately focused on cosseting its passengers in a cocoon of luxury, the Urus and DBX have a sportier character about them, that’s evidently reflected in the way they look - the Bentayga looks like a luxury fridge on stilts compared to the aggressive, low-slung stance of both the Lambo and Aston, so its direct rival is actually the Rolls Royce Cullinan.
The Aston Martin DBX will be powered by the same AMG-sourced 4-liter twin-turbo V8 that powers both the Vantage and the DB11. Under the hood of the DBX, it will make 542 horsepower and 700 Nm (516 pound-feet) of torque, good enough for a naught to 100 km/h (62 mph) sprint time of around 4 seconds and a top speed of around 300 km/h (186 mph).
In-keeping with the times, there will also be a hybrid version of the DBX, but we don’t have informations about this electrified powertrain’s specifics. In the future, Aston may make an even more potent version of the DBX, with the company’s own 5.2-liter twin-turbo V12 under the hood and an output well in excess of 600 horsepower.
On paper, it looks like a very desirable model that is shaping up to be hugely desirable in the near-$200,000 super-SUV segment. It has the looks, it has the well appointed luxury interior and, by all accounts, it’s got the performance too. Plus there’s no denying the coolness factor of that Aston Martin badge on its nose.
This model really needs to be successful in order to help keep the automaker in business. And selling SUVs to fund the building of sports cars is nothing new - Porsche has been successfully practicing this business model for nearly two decades now and it seems to be working wonders.
It apparently posted a $17.4-million loss in the third quarter of 2019, and it has lowered its initial yearly sales target of 6,300 - 6,500 to an unspecified value, in the face of lower-than-expected demand for the Vantage. Vehicle sales in the Q3 2019 fell by 16 percent compared to 2018 too.
Aston Martin shares went down by a massively this year its market value shrunk to $1.22-billion (it was valued at $5.5-billion in October, 2018). But this slump may not last long, as the automaker is banking on the release of its first ever SUV, the Aston Martin DBX.
The company is putting the finishing touches on its second production facility, in St Athan in the U.K. where it plans to build the SUV. The maximum production capacity for this new plant is estimated at around 5,000 vehicles per annum at first, but it is expected to be increased to 7,500 two years after its opening.
And it hopes to sell a lot of these high riders - the aim is to more than double its yearly sales target (which, as previously mentioned, won’t be met in 2019), increasing it to 14,000 vehicles.
The new plant will also build two Lagonda-badged electric vehicles, one of which will be a battery-powered SUV, and these two models are expected to account for around 2,000 annual vehicle sales by 2023.
If this plan backfires, Aston Martin might be in a bit of trouble, since it not only invested in developing the DBX, but it also built a new factory to make it - yet it seems to be confident its first ever SUV will prove successful, and first signs in this respect are good.
Industry analysts seem optimistic about its prospects and right now, Aston is looking to secure pre-orders with the aim of having 1,400 of them by June, 2020. If this target is met, the company will take advantage of an additional $100-million in financing from its backers.
So, does the DBX have what it takes to upset the balance of power in the newly created super-SUV segment, now dominated by the likes of the Bentley Bentayga or Lamborghini Urus? Well, it will be priced at $189,000 in the U.S., so it’s a direct rival for both aforementioned vehicles, yet it will be closer to the Lambo in terms of philosophy.
Whereas the Bentley Bentayga is very fast, but ultimately focused on cosseting its passengers in a cocoon of luxury, the Urus and DBX have a sportier character about them, that’s evidently reflected in the way they look - the Bentayga looks like a luxury fridge on stilts compared to the aggressive, low-slung stance of both the Lambo and Aston, so its direct rival is actually the Rolls Royce Cullinan.
The Aston Martin DBX will be powered by the same AMG-sourced 4-liter twin-turbo V8 that powers both the Vantage and the DB11. Under the hood of the DBX, it will make 542 horsepower and 700 Nm (516 pound-feet) of torque, good enough for a naught to 100 km/h (62 mph) sprint time of around 4 seconds and a top speed of around 300 km/h (186 mph).
In-keeping with the times, there will also be a hybrid version of the DBX, but we don’t have informations about this electrified powertrain’s specifics. In the future, Aston may make an even more potent version of the DBX, with the company’s own 5.2-liter twin-turbo V12 under the hood and an output well in excess of 600 horsepower.
On paper, it looks like a very desirable model that is shaping up to be hugely desirable in the near-$200,000 super-SUV segment. It has the looks, it has the well appointed luxury interior and, by all accounts, it’s got the performance too. Plus there’s no denying the coolness factor of that Aston Martin badge on its nose.
This model really needs to be successful in order to help keep the automaker in business. And selling SUVs to fund the building of sports cars is nothing new - Porsche has been successfully practicing this business model for nearly two decades now and it seems to be working wonders.
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