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Wednesday, August 12, 2020 ARCHIVES  |  SEARCH  |  POST ADS  |  ADVERTISE  |  SUBSCRIBE   |  LOGIN   |  CONTACT US

Aston Martin losses grow as sales tumble at James Bond's carmaker


Carmaker Aston Martin, which has changed its boss and brought in a billionaire investor this year after a weak performance, posted on Wednesday a deeper first-half loss of 227 million pounds ($293 million) amid a slump in sales.

Its main factory, which closed during the lockdown, is not due to reopen until the end of August as the firm focussed on resuming production at a new site in Wales, where its first sport utility vehicle, the DBX, rolled off the line this month.

Popular for being James Bond's carmaker of choice, the firm has had a difficult time since floating in 2018 as it failed to meet expectations and burnt through cash, prompting it to give a stake to a consortium led by billionaire Lawrence Stroll.

Since then it has announced job cuts, reduced inventories and picked a new chief executive and new finance boss among a series of changes, while it is also responding to the pandemic which contributed to a 41% drop in sales.

"It has been a challenging period with our dealers and factories closed due to COVID-19, in addition to aligning our sales with inventory with the associated impact on financial performance as we reposition for future success," Stroll said.

The firm's half-year pre-tax loss of 227 million pounds compares to a loss of 80 million pounds in the same period last year. Revenue fell by nearly two thirds to 146 million pounds.

Aston's first 4x4 is central to its turnaround plans as it enters a lucrative segment of the market in a bid to widen its appeal, including to more female buyers.

"We're pleased with how its developing," finance chief Ken Gregor told Reuters.