Carmaker Aston Martin, which has changed its boss and brought in a billionaire investor this year, posted a deeper first-half loss of 227 million pounds ($293 million) on Wednesday 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 focused on resuming production at a new site in Wales, where its first sport-utility vehicle, the DBX, rolled off the line this month.
Renowned as 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.
Aston Martin is now focused on resuming production at a new site in Wales, where its SUV, Aston Martin DBX will be manufactured.
Since then, it has announced job cuts, reduced inventories, and picked a new chief executive 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.
The Aston Martin DBX SUV has embarked on a testing program that will see it put to its performance limits while ensuring it functions as an off-roader.
The company said it had identified an accounting error in its U.S. region, meaning the firm’s loss was slightly more profound in 2019 with a reduction in earnings before interest and tax of 15.3 million pounds.
Aston’s first 4×4 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 it’s developing,” finance chief Ken Gregor said.
