Cult brand in crisis
Aston Martin makes an unexpectedly large loss
May 1, 2024, 11:57 a.m
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Aston Martin became a cult brand thanks to James Bond films. The British car manufacturer wants to keep up with the times and is planning new models, including an electric car. The ambitious goals were postponed at the beginning of the year – Aston Martin posted a significant loss.
The British sports car manufacturer Aston Martin slipped deeper into the loss zone than expected at the start of the year. In the first quarter, the loss before taxes almost doubled to 111 million pounds (around 130 million euros) after 57 million pounds in the previous year, as the cult brand known for James Bond films announced. The result was even worse than analysts had feared, who had expected a loss of £93 million. The company spoke of a transition phase in the restructuring of the model range.
Aston Martin launched several new models last year and stopped production of older series. The sports car manufacturer is still sticking to the combustion engine. “As long as we are allowed to build cars with combustion engines, we will build them,” said company boss Lawrence Stroll. “I think there will always be demand, even if it is small.” He also announced that he would increase investments for new plug-in hybrid models.
Aston Martin postponed the start of production and sales of its first electric car in February. The model is now scheduled to come onto the market in 2027 at the earliest. The British government had previously postponed its plans to ban new cars with combustion engines from 2030 to 2035.
The company plans to ramp up production of new models later this year. “Our performance in the first quarter reflects the expected transition phase,” said CEO Lawrence Stroll. The group is sticking to its outlook for 2024. Investors were disappointed by the figures and sent shares plummeting by eleven percent.