Aston Martin’s pre-tax losses surged to £138.8 million in the first quarter, nearly doubling amid production slowdowns. The company aims to focus on newer car models set for launch later this year.
In the three months to March 31, the FTSE 250 company sold 945 wholesale cars, a quarter fewer than last year’s 1,269. The car manufacturer expects new launches to bolster sales later this year, including the Vantage and DBX707 models slated for delivery by the end of Q2.
Meanwhile, deliveries for its flagship V12 and Special models are set to begin in the fourth quarter. Lawrence Stroll, Aston Martin executive chairman, said: “2024 is a year of immense product transformation at Aston Martin, with the introduction of four new models to the market before the end of the year.
Despite first-quarter losses surpassing estimates, Aston Martin insists it’s on track to meet 2024 targets. The results and upcoming launches mark a new phase in the company’s recent turnaround since Mr. Stroll’s acquisition in 2020.
Net debt rose to £1.04 billion from £868 million, a burden since the unsuccessful 2018 listing. However, a £1.2 billion refinancing deal indicates progress in the turnaround plan.
Amidst the backdrop of increasing losses, Aston Martin is intensifying its efforts to ramp up production and marketing for the new model. The success of the new Aston Martin model is crucial for the company’s long-term viability and profitability. As Aston Martin navigates these challenges, stakeholders are eagerly anticipating the impact of the new model on the company’s bottom line.
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