Aston Martin publishes results: go six years without giving money

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If we compare the results with Aston Martin in the year 2015 to 2016, we will see that the losses have increased by 27% to 162,8 million pounds. This figure has a lot to do with the transition costs of the new DB11, the fall of the pound due to the “Brexit” has been paradoxically very positive.

Since the restructuring of the manufacturer, the DB11 is the first completely new model, which has begun to reach out to customers by the end of 2016, at which time the sales have improved by up to 50%. In total, the luxury brand sold 3.687 cars during the past year, a shy increase of 1.9%.

Put in motion the production of the DB11 has involved a costly investment, not to mention the 200 million pounds which represents pick up the factory in Wales for the production of the SUV DBX. This model will be key for the company to get benefits, as it is a product defendant also among the clientele of luxury.

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Another line of business is to resurrect classics of the past, such as the DB4 GT Lightweight 1959

For the next few years Aston Martin has an ambitious programme of releases. In the year 2018 will come the replacements of generation of the Vanquish and Vantage. It is the year that Andy Palmer expects profitability “if not before”. The DBX will not make appearance in the scene until 2019, at which time it will fight against the SUV of Rolls-Royce, Bentley Bentayga and company.

As for the next decade is expected a new model of the central engine, as well as two models of the Lagonda. On the other hand, the life cycles of the cars are going to be shortened by up to seven years. In other words, a strategy where the key number is seven: 7 releases until 2022, life cycles of 7 years.

Another model which will help the finances of Aston Martin will be the AM-RB 001, of which there will be an edition of 175 copies, of which 150 will be enrolled and the rest are for circuit only. the Entire production is compromised, and will represent revenues in excess of £ 400 million, because each copy will cost 2-3 million pounds.

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Aston Martin AM-RB 001, the most expensive car in the history of the brand

The owners of Aston Martin are investment groups, on the one hand Tejara of Kuwait, and on the other hand Investindustrial of Italy. These shareholders have the same power of decision in the company. If all goes according to the plans of Andy Palmer, will begin to recover money in less than two years. Another shareholder to consider is Daimler, the parent company of Mercedes-Benz.

The participation of the German group has to do with transfers of technology to the new Aston Martin, but with little weight in regard to the driving autonomously. Customers of Aston Martin does not seem to have much interest in their racing cars and luxury cars have the possibility to conduct themselves. In order to account, are luxury goods, not utilities.

Progressively Aston Martin will getting rid of the legacy of Ford Motor Company. The american giant is rid in a short time of several brands, see Volvo (now part of Geely), Jaguar and Land Rover (now part of Tata). Had a lot to do in those decisions the fact that Ford almost needed the Government bailout of the US and Canada, which ultimately did not need.

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Logos of Aston Martin throughout its history

The fact that the pound sterling has fallen in value due to the vote in favour of exit from the European Union is beneficial to Aston Martin. To be a company that produces in the United Kingdom, if the currency falls, they enter more pounds to the profit and loss account for the purchases in euros or in dollars.

For the year 2018 will already be refurbished models of the heart range, the more sales that are DB11, Vanquish and Vantage. By having more income by the sales -effect-new model – the numbers will turn around. The hopes in the DB11 are very strong, and the results of sales in the fourth quarter of 2016 it was confirmed.

so seen, the worst for the british manufacturer has already left behind

Now it’s a question of months the situation improves, provided there are no other painful event. When consuming the “Brexit”, for example, their cars will automatically be more expensive in the European Union to have to endure again a 10% tariff when imported to the mainland. Fortunately for Aston Martin, their main customers are concentrated to other markets.