Aston Martin losses almost quadruple as Covid cuts gross sales Aston Martin
Aston Martin Lagonda’s losses nearly quadrupled in 2020 as the pandemic weighed on sales as the sports car maker’s new bosses embarked on a turnaround plan.
The automaker reported a pre-tax loss of £ 466 million for the year on Thursday, compared to a loss of £ 120 million in 2019 as sales plummeted and investments in near-abandoned products like the Rapide electric car of nearly 100 million . GBP were written off.
It also missed its usual marketing boost by joining the James Bond film franchise after the release of No Time to Die was repeatedly delayed by the pandemic. The automaker’s revenue in 2020 was down 38% year over year to £ 611 million.
However, thanks to the sale of its new DBX SUV with sales 3% higher than in the same pre-pandemic 2019 period, the company was able to highlight glimmers of hope in an improved final quarter of 2020.
Aston Martin sold 4,150 cars in 2020, a third less than in 2019. The automaker had already warned of the pandemic that it would cut sales in 2020 as it tried to restore the exclusivity of its brand. However, the pandemic forced both factories and dealers to temporarily close at various times throughout the year.
The latest results mean Aston Martin has lost £ 638 million in the three years since it was listed on the London Stock Exchange. This underscores the challenge that management and owners still face to revitalize the company.
Lawrence Stroll, a Canadian billionaire who made his fortune from investing in fashion, took control of Aston Martin in January 2020 under a £ 500 million bailout deal. He replaced Andy Palmer as managing director with Tobias Moers, the former head of the high-performance division of Daimler, Mercedes-AMG.
Moers played a key role in securing a contract with his former employer, Daimler, which took a 20% stake for access to hybrid and battery-electric technologies, reducing the need for significant investments.
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Moers said demand for the DBX was strong, priced at £ 158,000, adding that the company was ahead of schedule in reducing the number of weak sports cars at the dealership. There are “encouraging signs of demand” for sports cars, he added.
Aston Martin now plans to sell around 6,000 cars by 2021. By 2024 or 2025, sales are expected to increase to 10,000 cars, which corresponds to sales of around £ 2 billion. This corresponds to a target of £ 500m in operating income before various costs.
Stroll said he was “extremely pleased with the progress so far, despite operating in these toughest times”. He added that he was “fully committed” to the company’s plan.