In 2024, Aston Martin is going through a difficult time. The legendary automaker has already spent more than half a billion dollars in US money this year, or about $2.5 million per day. The British company records pre-tax losses of US$295 million, due to supply disruptions and falling demand in China.
Reduced Production and Falling Demand in China
In September, Aston Martin lowered its production forecast, reducing its targets for the year by almost 1,000 vehicles. Delivery figures reveal a 17% decline in sales, from 4,398 cars in 2023 to 3,639 in 2024 over the first nine months. The DBX, a flagship model, has seen a 52% drop in sales and now represents only 30% of total sales, compared to more than half last year.
Some Positive Notes: Increase in Sales for Sports Models
Despite these losses, certain models are recording increased sales. The brand’s sports cars, including the Vantage and DB12 models, show an increase of 16% thanks to increased production of the Vantage. Sales of exclusive “Specials”, such as the Valor and Valkyrie models, are also up with a jump of 132%, or 90 additional units.
Growing Debt and Strategic Reviews
The financial outlook remains gloomy. According to The TimesAston Martin has given up on achieving cash balance by the end of the year. Worse still, its net debt increased by almost 50%, to 1.21 billion pounds (US$1.57 billion), exceeding the company’s total value by 40%.
The Vision of Optimism for 2024
Despite discouraging figures, CEO Adrian Hallmark remains hopeful. “The improved financial and operational performance in the third quarter of 2024 demonstrates the effectiveness of our strategy,” he said. Aston Martin still aims to meet its revised targets for the year, after adjusting production in line with supply constraints and a weak economy in China.
With information from Motor1
The text Aston Martin loses 2.5 million per day comes from L’annuel de l’automobile – Automotive news
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