Coronavirus crisis: Aston Martin at risk?
After poor financial results in 2019, Aston Martin was set to turn the corner this year thanks to the financial support provided by Lawrence Stroll, who acquired a 16.7 per cent stake in the company in February, and the launch of the DBX, the brand’s first SUV. While the British manufacturer has just announced that it is extending the manufacturing suspensions in its factories by a week, the crisis of the Covid-19 coronavirus seems to dampen these hopes.
Aston martin announced in a press release issued on Wednesday that it was extending the suspension of vehicle manufacturing at its two UK plants by one week. The announcement could well delay the arrival of its first sports utility vehicle, which is crucial for the manufacturer, while the locking measures to combat coronavirus continue.
After experiencing difficulties since an IPO at the end of 2018, the luxury carmaker secured new investment earlier this year from Lawrence Stroll, co-owner of the F1 Racing Point team, who also became executive chairman of Aston Martin Lagonda.
The latter is relying entirely on the DBX model to boost sales in a new segment, attracting more female buyers.
The company said on March 30 that the vehicle would be on time for the first deliveries to dealers this summer “depending on the return of the production and supply chains as planned“, with its sites initially scheduled to reopen on April 20.
“Given the current global and local position on suppliers and employees, the company is now extending this temporary suspension until Monday 27 April, subject to continued review of changing circumstances,” she said yesterday.
“Given the amount of the capital increase, the company believes that the group does not have sufficient working capital for 12 months“would have let Aston Martin know according to Bloomberg. These 12 months would start last February.
Britain’s largest carmaker Jaguar Land Rover has not set a date for the reopening of its facilities, while Nissan announced earlier this month that the suspension of production at its Sunderland site “will continue throughout April“.
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Featured photo: © Aston Martin
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