The iconic British carmaker Aston Martin is in high gear with new models rolling out, but it’s paying a steep price.
Aston Martin reported losses of more than $1.8 million per day this year, tallying a pre-tax loss of $11.6 million for the third quarter.
Despite the heavy toll, the company's results were better than anticipated.
In total, Aston Martin has incurred $460 million in losses up to September 2024.
This follows the brand’s revised forecast last month, which projected lower profits and a reduction in production by 1,000 units due to supply disruptions and reduced demand in China.
Year-to-date deliveries have dropped 17%, down from 4,398 to 3,639 vehicles.
This was reported by The Times.
SUV Sales Slump
Sales of Aston Martin’s luxury SUV, the DBX, have plunged by 52%, now representing just 30% of overall sales compared to over half last year.
In contrast, sales of the Vantage and DB12 sports cars rose by 16%, fueled by boosted Vantage production. The figure is expected to rise further with the introduction of the Vanquish later this year and into 2025.
The brand’s limited-edition models, including the Valour and Valkyrie, saw an impressive 132% jump in sales, though this accounts for only 90 vehicles.
Aston Martin’s financial challenges have led it to abandon hopes of breaking even this year. The company has also taken out additional loans, raising its net debt by nearly 50% to $1.1 billion, which is about 40% higher than the brand's total valuation.
Despite these losses, CEO Adrian Hallmark is optimistic, citing improved performance and a strategy on track to meet Aston Martin’s revised 2024 outlook.
