Aston Martin

[Bossxr8]

Looks like Aston Martin is in financial trouble again. They have only ever been profitable in 2 years of their 107 year history, and have been bankrupt 7 times.

It's bloody remarkable they have survived this long. But anyone who invests in them is an idiot.



https://www.goauto.com.au/news/aston...-28/82925.html

Ex-AMG boss Tobias Moers joins Aston Martin during sagging sales and excessive debt
28 May 2020

By NEIL DOWLING

BELEAGUERED British sportscar icon Aston Martin, weighed down by $A1.15 billion of net debt and plunging car sales during the COVID-19 pandemic, has changed its guard and taken on former Mercedes-AMG boss Tobias Moers as its new CEO.



Mr Moers’s appointment as Aston Martin Lagonda’s boss sees the departure of former president and group CEO Andy Palmer, who held the post for six years, and follows a consortium of new investors and a shareholder issue that injected $A1.1 billion to keep the car-maker afloat.



The replacement of the CEO was orchestrated by Aston Martin’s new chairman, Canadian businessman and Ferrari dealer Lawrence Stroll.



Aston Martin insisted the appointment had nothing to do with Mercedes-Benz having a five per cent stake in the brand or the ongoing supply of AMG V8 engines used in the Vantage and DB11 V8.



Mercedes-AMG also supplies electronics to Aston Martin for all its models and powers the Racing Point Formula One team that will become the Aston Martin Formula One team next year.



While the business plan looks solid, Aston remains financially weak. Stroll and partners invested $A485 million in the company, with another $A590 million coming through a shareholder-funded rights issue.



However, according to the Financial Times newspaper, Aston Martin’s performance since its initial public offering in 2018 has been “dismal”.



Its shares have fallen by 98 per cent – from $A35 when it first listed to A65 cents last week – as the global luxury car market has slipped and dealerships become overstocked.



Shares are now up to A94c, increasing after the change in leadership became public.



On top of the sagging share price, the company has poor demand for the Vantage model.



Costs increased when Aston Martin opened its new factory in Wales to produce the DBX SUV and led the company to take on debt packages to maintain the business.



In the first three months of 2020, the Aston Martin Lagonda reported a $A222 million loss as the debt repayment and factory start-up was compounded by COVID-19 as it closed factories and dealerships.



Revenue fell by 60 per cent to $A146 million as car sales halved, according to the FT.



It does, however, follow Aston’s history. The brand has only been profitable for two years in its 107-year history and has been bankrupt seven times.



The saviour in this is seen as Tobias Moers. The 54-year-old German joined AMG after graduating university before Mercedes took control in 1999 and became boss of Mercedes-AMG in 2013.



Daimler AG chairman Ola Kaellenius said: “Tobias Moers has led the AMG brand to great success and we would like to thank him warmly for all his achievements at Daimler.



“We have mixed emotions about his departure. On the one hand we are losing a top executive, but at the same time we know that his expertise will be of great value to Aston Martin, a company with which we have a longstanding and successful partnership.”



Mr Moers has seen AMG sales rocket, increasing from 20,000 in 2012 to 132,000 in 2019.



His CV includes the GT and the delayed AMG One hypercar that coincidentally is a competitor to Aston Martin’s looming Valkyrie.



Mr Moers starts at Aston Martin in August where one of his first ports of call will reportedly be removing Aston Martin from its relationship with Red Bull Racing.



He will also oversee the move from Racing Point Formula One team to Aston Martin’s branding by next season.



Aston Martin’s long-awaited DBX SUV, regarded as a vital model to boost sales, arrives in Australia this year.


Mr Palmer, who before Aston Martin was global head of product development at Nissan, was removed from his position as CEO on May 25.


Critics of Mr Palmer say he unnecessarily diversified Aston’s model range to broaden its customer base and that the company had overextended itself and stretched too far.

[guzzis3]

They are a halo brand.

Ford would have stopped making mustangs in the 70's if it were just about money, but they and the many owners of AML know they can use the brand as a marketing tool to funnel buyers toward their more pedestrian offerings.

Same reason David Brown bought them in the 50's. Also ego of course...

[marty351]

Making cars for cashed up, overweight 007 wannabes with mediocre performance and pricing them alongside Ferraris, it was never going to be a recipe for success.

[Mr Brooksy]

Originally Posted by marty351

Making cars for cashed up, overweight 007 wannabes with mediocre performance and pricing them alongside Ferraris, it was never going to be a recipe for success.

They may be sub par in that segment, but up until the most recent offerings they were the most beautiful thing, on any road, anywhere!

[MercuryT]

Originally Posted by Mr Brooksy

They may be sub par in that segment, but up until the most recent offerings they were the most beautiful thing, on any road, anywhere!

It's interesting isn't it.

I might be (probably am) crazy but I'd buy an Aston Martin over a Porsche any day second hand at same price, even knowing clearly an inferior vehicle.

Still more than enough performance for me plus they were amazing to look at (most of them)

[Bossxr8]

Originally Posted by guzzis3

They are a halo brand.

Ford would have stopped making mustangs in the 70's if it were just about money, but they and the many owners of AML know they can use the brand as a marketing tool to funnel buyers toward their more pedestrian offerings.

Same reason David Brown bought them in the 50's. Also ego of course...

Whose pedestrian cars are they being funneled towards? No manufacturer owns them, bar AMG having a couple of percent stake. You'd think if you charge hundreds of thousands of dollars for cars you'd have had more than 2 years out of 107 being profitable. They are a cash black hole and have been for their entire history. I mean 7 bankruptcy's? C'mon, that is insane they are still around.

Originally Posted by Mr Brooksy

They may be sub par in that segment, but up until the most recent offerings they were the most beautiful thing, on any road, anywhere!

That is true. The DB9 etc were bloody gorgeous. Not so sure about their current models though. Still nice, but gone backwards a little bit.

[MercuryT]

Originally Posted by Bossxr8

That is true. The DB9 etc were bloody gorgeous. Not so sure about their current models though. Still nice, but gone backwards a little bit.

What? DB9 gorgeous?

How about this Aston Martin beauty!

[Vekgib]

Originally Posted by MercuryT

What? DB9 gorgeous?

How about this Aston Martin beauty!

image

Landlord at a house we used to rent had 3 of those. Sitting in a barn on the 123 acres we were renting. Owned more cars than he knew what to do with.

[MercuryT]

Originally Posted by Vekgib

Landlord at a house we used to rent had 3 of those. Sitting in a barn on the 123 acres we were renting. Owned more cars than he knew what to do with.

Really 3 Lagondas as well as the others!

He obviously wasn't struggling for a $....ha

[Bossxr8]

Originally Posted by MercuryT

What? DB9 gorgeous?

How about this Aston Martin beauty!

image

Yeah the Lagondas were ugly as sin.

[guzzis3]

Originally Posted by Bossxr8

Whose pedestrian cars are they being funneled towards? No manufacturer owns them, bar AMG having a couple of percent stake. You'd think if you charge hundreds of thousands of dollars for cars you'd have had more than 2 years out of 107 being profitable. They are a cash black hole and have been for their entire history. I mean 7 bankruptcy's? C'mon, that is insane they are still around..

Ford owned them for some years. They and Jaguar were owned by another company I can't remember who. Possibly the reason they are in trouble now is they no longer have an affluent big brother. I don't keep track of car politics anymore, getting old. Time is short...

Some other examples. Citroen bought Maserati in the 70's, Fiat bought Ferrari, VW bought Bugatti and Lamborghini. None of these acquisitions were ever going to contribute significant cash to the parent company, and usually they run at a loss.

They buy them for the exact same reason they do F1 WRC touring cars etc. Associating the key brands with technology, beauty, desirability, sporting excellence. In other words it's publicity.

Our aston martin is beautiful and desirable, here buy our taurus...

[Bossxr8]

Originally Posted by guzzis3

Ford owned them for some years. They and Jaguar were owned by another company I can't remember who. Possibly the reason they are in trouble now is they no longer have an affluent big brother. I don't keep track of car politics anymore, getting old. Time is short...

Some other examples. Citroen bought Maserati in the 70's, Fiat bought Ferrari, VW bought Bugatti and Lamborghini. None of these acquisitions were ever going to contribute significant cash to the parent company, and usually they run at a loss.

They buy them for the exact same reason they do F1 WRC touring cars etc. Associating the key brands with technology, beauty, desirability, sporting excellence. In other words it's publicity.

Our aston martin is beautiful and desirable, here buy our taurus...

Aston has been owned by a few other manufacturers. But since Ford ditched them at least a decade ago they have been in private hands.

[CobraJet351]

Indian company TATA Motors bought them I think. They were bleeding money with Ford also and TATA was willing to pour lots of $$$ into them. AM was better off with TATA then Ford and they still failed to be profitable enough.

Also, if Ford didn't sell they would of followed GM and went bankrupt.

[turbo4]

Originally Posted by CobraJet351

Indian company TATA Motors bought them I think. They were bleeding money with Ford also and TATA was willing to pour lots of $$$ into them. AM was better off with TATA then Ford and they still failed to be profitable enough.

Also, if Ford didn't sell they would of followed GM and went bankrupt.

Nope, TATA bought Jaguar-Land Rover. Aston Martin is independent from any other car maker, apart from a small 5% share holding by AMG and Ford retained 5% which I think that they still have.

[Yellow_Festiva]

Chinese will buy them, start making them for half the price of the current owners and flog them off for 90% of current RRP.

[MercuryT]

There was an Aston Martin thread not long before this one.

I remember posting that there is an Aston Martin that works close to me (not sure where but leaves at same time after work)

Think it's a DB9 in silver. Looks stunning, I can't help myself but gawk at it even though seen it hundreds of times!

[smoo]

Originally Posted by Yellow_Festiva

Chinese will buy them, start making them for half the price of the current owners and flog them off for 90% of current RRP.

Just like what they’ve cleverly done with MG.
Take a brand with some past connection to western countries and flog it off at Chinese rates. A good way to infiltrate other markets and take market share away from other brands.
Family member sells MGs new. He said they’re the cheapest nastiest **** on the road but ageing couples come in and buy them because they used to own an MG back in the 80s or 90s.
Mazda should take legal action over them anyway. The MG suv is a knock off of the the Mazda CX-5 inside and out.

Aston Martin symbolic of Britain, it’s society and where it’s heading. Straight down the ****ter.

[Citroënbender]

But, but... I thought they were “taking back control”?

[roKWiz]

Originally Posted by Yellow_Festiva

Chinese will buy them, start making them for half the price of the current owners and flog them off for 90% of current RRP.

Ummm, sounds familiar to a certain US made bicycle I'm no longer collecting.

[Feathers]

A friend overseas bought some shares when the value dropped to $1 each, as a joke.