Aston Martin crisis deepens as China sales slow
Aston Martin has announced it is looking to raise cash after it lowered its profit forecast for the second time in two months.
The UK luxury carmaker is now expecting to turn a profit of up to £280m ($352m) in 2024 – below last year’s £305.9m.
The company, famed for its links to fictional superspy James Bond, is blaming a “minor delay” in deliveries of its ultra-exclusive Valiant models for the shortfall.
Aston Martin had already cut its guidance in September, saying it had been hit by a fall in demand in China, where a slowing economy has affected sales of luxury cars.
To bolster its finances, the carmaker has said it will issue new shares and debt totalling £210m.
“The financing we are undertaking supports our growth and provides the investment to continue with future product innovation,” said Adrian Hallmark, Aston Martin’s chief executive, in a statement.
“We are already taking decisive actions to better position the group for the future including a more balanced production and delivery profile.”
Aston Martin said it now expects to deliver about half of 38 Valiant model orders by the end of the year. It had previously said it would be able to deliver the majority of those cars.
UK-listed shares in the high-end car maker have now halved since the beginning of the year.
Aston Martin is a prestige brand which makes upmarket cars in relatively small quantities.
Last year, it sold 6,620 vehicles, with about a fifth of those going to the Asia-Pacific region.
On top of the slowdown in China, it has faced problems at a number of suppliers, which have affected its ability to build a number of new models.
As a result, Aston Martin has said it will make about 1,000 fewer cars than originally planned this year.
Carmakers across Europe have been suffering lately, with disappointing sales and increased competition from abroad taking a heavy toll on earnings.
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