Aston Martin increases its losses, affected by costs and equipment problems

Aston Martin increases its losses, affected by costs and equipment problems

British luxury carmaker Aston Martin saw its year-on-year loss quadruple in the first half amid a sharp rise in costs and equipment problems due to a global supply crisis.

SEE ALSO – EDF faces an exceptional loss of 5.3 billion euros in the first half

The loss reached 290 million pounds with sales of up to 9% to 541.7 million, due to the increase in selling prices, while the volume decreased, hindered by the difficulty of equipment, which should decrease by the end of the year, expects the group, according to information to the media news on Friday. Final results were also affected by depreciation and amortization costs and due to exchange rate revaluation.

Development of new models

The maker of James Bond’s favorite car spent £138m in the first six months of the year, mostly on new models due to be launched next year. The Executive Chairman of the Board, Lawrence Stroll, said in the statement that “Aston Martin’s fundamentals have never been better, with strong demand across our range, sports cars on sale through 2023 and orders for the DBX (the brand’s SUV) up more than 40% in one year.“.

Complexity of supply chainsisolated but having a strong effect“, in the second quarter specifically, ended with”decrease in gross sales“especially with the more than 350 DBX707s that were supposed to be released in the second quarter”and still waiting for the final parts, spending tens of millions of pounds of money and temporarily reducing our ability to meet huge demand.“.

This year’s forecast is however being maintained as the company, rescued from bankruptcy in early 2020 by Canadian billionaire Lawrence Stroll, is now looking to shift more towards luxury and begin a shift towards electrification. The manufacturer announced in May the departure of its chief executive, Tobias Moers, to be replaced by former Ferrari boss Amedeo Felisa. And in mid-July, he publicly announced a capital increase of 653 million pounds (770 million euros) and at the end of which the Saudi Public Investment Fund (PIF) will be its second shareholder, an operation intended to finance the group. and allay recent market concerns about its finances.

The title was in balance on Friday around 08:15 GMT (+0.04% to 475.80 cents).

SEE ALSO – Stéphane Wimez: “In cars, the past and electricity are incompatible”