- Photo by Thibaut Nagorny on Unsplash

Is Aston Martin in trouble?

Sales are down, profits are down, the CEO said it's been "very disappointing". Should we be worried?

Aston Martin CEO Andy Palmer has confirmed that the British brand has "suffered a very disappointing year" in 2019, having sold 5,819 cars, 7% down from the previous year. There have been speculation and rumours about potential new investors, especially regarding Canadian businessman and billionaire (est. net worth of about £2 billion) Lawrence Stroll, the father of racing driver Lance Stroll and owner of Racing Point F1 team, but Mr. Stroll has so far declined to comment on the subject.

Photo by Matthew Wiebe on Unsplash

Photo by Matthew Wiebe on Unsplash

The company went public in 2018 with an IPO on the London Stock Exchange. It was valued at around £5bn, which many believed to be too much, and AM shares have basically been going down since. The problem, according to Mr Palmer, doesn't end with sales or stock value because profitability is actually the key issue. Palmer said that earnings margin for 2019 is around 13% with adjusted earnings before interest tax depreciation of anywhere between £130m and £140m, and that's around £60m below expectations.

Aston Martin is currently 100 % invested in the forthcoming DBX SUV. The car has huge potential, and is arguably one of the best-looking SUVs out there, with great interior and a big V8 heart, but at the end of the day it's all about sales and profit. Aston really, really needs the DBX to work from a financial and commercial point of view, but this new SUV might help Aston in the same way the Cayenne helped Porsche, as a make-or-break vehicle for the brand's resurrection. For now, Aston has received 1800 pre-orders for the DBX, with deliveries only starting later this year.

At the moment, the only thing we know for sure is Aston is indeed looking for new investors, reporting interest from several firms in the Middle East, India and China. Having said that, Lawrence Stroll definitely sounds like a potential candidate. Stroll made a fortune investing and building up brands like Ralph Lauren and Tommy Hilfiger, which means that, apart from monetary value, his ideas could help Aston Martin rebuild the brand and make it bigger.

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Well, you could buy an Aston Martin. But they are expensive. Maybe buy a Lego version, if you can't afford the real thing?

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Comments (20)

  • Aston Martin has a history of being desirable and in financial trouble. This is its heritage.

    Maybe Lawrence Stroll will be the new David Brown.

      1 year ago
    • There was a story about one of David Browns friends wanting to buy an Aston 'at cost'.

      Brown relied that it will cost more.

      Who knows if it is true, but when I did work for them in the 1980s they were deep in the cacky poo poo.

        1 year ago
  • When Porsche was struggling financially, they released the Cayenne. Now they're making some of the best sports cars, yes, better than before, because they earned profit from the growing SUV/crossover (please forgive me for using the dreaded word "crossover") market. Maybe an SUV such as the DBX could ramp up profits for AM. We'll see what happens with the DBX from a financial standpoint.

      1 year ago
  • Issue is if you haven't got a stupid SUV you aren't going to sell cars easily. Other luxury car manufacturers similar to Aston Martin (Rolls Royce and Bentley) have now got SUV's and they are apparently selling really well. Hopefully the Aston Martin SUV might grab a few sales.

      1 year ago
  • Hope they get it together. Bond needs something to drive, whoever she may be 🙄

      1 year ago
  • Disappointing that they cant be bothered to use there own engines. Now using Mercedes engines. And now toyota supra with a BMW engine. Cars these days are liquorice all sorts .

      1 year ago
    • the engine isn't an issue. The average buyer doesn't care/know. Quality is the real issue. Have you seen the interior of an Aston Martin in person? Especially when compared to competition. The average supercar buyer is not a petrolhead, we...

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        1 year ago
    • Yes that's true. Richard hammond made a point of it in the grand tour about the new Aston Martin V8 Vantage. The people with the money will just go buy there sports car from another manufacturer. I would also expect when you pay that amount of...

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        1 year ago
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