Aston Martin Sales Drop amid Coronavirus, Company Promises to Offer DBX SUV Customization

Updated on Feb 27, 2020 at 2:21 pm UTC by Christopher Hamman · 3 min read
Aston Martin Sales Drop amid Coronavirus, Company Promises to Offer DBX SUV Customization
Photo: Aston Martin

The sales of Aston Martin are falling as well as the price of the AML stock. However, the company hopes to survive. It also plans to offer wide freedom in customization of its DBX SUV.

The sales of Aston Martin Lagonda Global Holdings PLC (LON: AML) have dropped. Sources indicate that the company is in distress yet again. It is also reportedly on the brink of bankruptcy. The stock of the company has fallen by about 10% since the company announced this. The company has indicated that it will continue working in spite of certain factors that are playing against it.

The sales have been declining since 2019. A bailout will also be needed. Lawrence Stroll is reportedly in talks with the automaker concerning this. Shares have responded negatively to the numbers that have come through. Losses before tax have climbed to £104 million. The 53% rise has made many investors worry about the future of the company. The sales of Aston Martin have also one down to £997m. This also corresponds with a matching fall in sales.

As AML stock fell by around 10% on Thursday since the opening of the markets. It is trading at £349.80 per share.

The company also reported a higher year-end debt of £876m. Adjusted leverage of 7.3x indicates s higher risk than normal. Higher debts also mean that the company is burning cash that it doesn’t have.

Aston Martin’s Sales Are a Symptom of Deeper Problems

Aston Martin has struggled since its 2018 IPO. Brexit has contributed immensely. It’s not clear though by how much in terms of numbers. So much so that the company has had to raise money using a new equity issue. The fund-raising round is reportedly at around £500 million ($645 million) worth of shares and a rights issue worth about £317m. Sources indicate that the share issue is fully backed by Canadian billionaire Stroll. Sources further indicate that this is for about a 20% take in the automaker. He is also expected to become its Chairman. This has reportedly occurred previously.

In a bid to “reset” the company, Aston Martin’s Chief Financial Officer Mark Wilson is expected to exit the company by April 30. He will be available to the organization through to June 30. 

Coronavirus Impact

The coronavirus also has its part in this travesty. Supply chains and sales chains have been affected since the rise of COVID-19. 

China alone accounts for a significant portion of its sales and supply chains. It is also its fastest rising market and is about 9% of bulk wholesales worldwide. 

DBX SUV Customization

Apart from other models, the DBX SUV has been the one silver lining in the clouds for Aston Martin. The DBX SUV sales seem to hold steady through the storm that the automaker has been facing. Deliveries though are expected to occur later in the second half of this year.

Moreover, the car is now included in the Q by Aston Martin program allowing extensive customizations. The program presupposes not only pre-designed upgrades. Customers will also have an opportunity to use their own imagination for upgrades. But of course, the price for such modifications can be impressive.

Will Aston Martin Survive the Storm?

Being a British pearl, how this turns out is of particular interest to the British economy. It may also serve as an indication of British manufacturing and its acceptability in the world. With Brexit, the British are already faced with a “sink or swim” scenario. Then again, the British are extremely good swimmers (pun intended), so there is hope for Aston Martin.

Business, Markets, News, Stocks, Technology
Christopher Hamman
Author: Christopher Hamman

Christopher Haruna Hamman is a Freelance content developer, Crypto-Enthusiast and tech-savvy individual. He is also a Superstar Content Developer, Strategy Demigod, and Standup Guy.

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