Aston Martin confirms £536 million cash injection and F1 entry

Aston Martin has received a £262 million package from Canadian billionaire Lawrence Stroll, who becomes chairman of the company

Aston Martin badge

Aston Martin has signed an agreement with Canadian billionaire Lawrence Stroll, that will secure the company £536 million of funding. The cash injection will help the British brand push the DBX through the start of its production cycle, as well as back the company’s return to Formula 1 for the first time since the 1950s.

Stroll, who made his fortune through his investment in upmarket fashion brands, is reported by Forbes magazine to have a net worth of $2.6billion. He and his company, Yew Tree Consortium, will offer a total investment of £262 million to Aston Martin, with the remaining funds being sourced from a rights issue. Stroll will also replace Penny Hughes as chairman.

In addition, Aston Martin has opened a fresh $100 million (around £81 million) credit line after fears the business would not have the required funding to meet its spending plans for the year. The funding will be available from May of this year, and sits on top of the brand’s existing £36.7 million of loan arrangement and £40 million of inventory.

Aston Martin’s financial troubles have been well documented of late – the company made a loss in 2018 and issued profits warnings to its shareholders last year. 

Aston Martin’s share price has also fallen dramatically since its Initial Public Offering (IPO) of October 2018. The price has plummeted to £2.26 a share in the last week – with Aston Martin losing more than 150 percent of its value since it was offered on the stock market. 

Aston Martin’s production facilities in both Gaydon and St Athan, Wales remain closed, in accordance with the Government’s guidelines on combating the spread of COVID-19. The economic turndown caused by the pandemic has forced the company to reassess its product strategy – details of which were released alongside this financial announcement.

The new DBX SUV, which is due to go on sale in summer this year in spite of the factory closures, will be crucial to the brand’s success – along with the recent launch of the new Vantage Roadster, which is expected to comprise up to 40 per cent of all Vantage sales.

The launch of Aston Martin’s all-electric luxury brand, Lagonda has been pushed back from 2022 to 2025, while the new Vanquish won’t be unveiled for another two years. The company will also aim to reduce its annual operating costs by £10 million, in a bid to offset the price of its all-new production facility in St Athan, South Wales.

Stroll said: "I, and my co-investors in the consortium, continue to believe passionately in the future of Aston Martin Lagonda. This is most clearly demonstrated by our investment of £262m which underpins the financial security of the company. This is a very significant capital raise of £536m – due to be made by my consortium and other shareholders at a very challenging time. 

“This gives the necessary stability to reset the business for its long-term future.  We have a clear plan to make this happen, including Aston Martin entering an F1 works team next season and I look forward to working with the Management team to deliver this programme."

Aston Martin’s return to Formula One racing

Lawrence Stroll owns the Racing Point Formula One team, having purchased the assets of the former Force India team in 2018.

Racing Point will undergo another change for the 2021 season, becoming a works Aston Martin team powered by Mercedes engines – just like Aston Martin’s V8 road cars. Aston Martin has signed an agreement to appear on the F1 grid for the next ten years – meaning it will return to the sport as a full factory operation for the first time since the 1950s.

The British brand will continue its sponsorship of the Red Bull Racing F1 Team for the 2020 season, while its technical partnership with the race team will remain intact until the first Valkyrie deliveries arrive later this year.

Do you think Aston Martin will flourish with investment from Lawrence Stroll? Let us know in the comments section below…


Best British modern classic cars 2022
Best British modern classics - header image
Modern classics

Best British modern classic cars 2022

Britain has its fair share of automotive icons, with many now finding themselves at a tempting price
24 May 2022
“Aston Martin desperately needs a clear direction for its future”
Opinion - Aston Martin
Aston Martin

“Aston Martin desperately needs a clear direction for its future”

After Tobias Moers’ departure as CEO, editor-in-chief Steve Fowler thinks Aston Martin now needs some stability
11 May 2022
Aston Martin replaces Tobias Moers with former Ferrari boss
Tobias Moers
Aston Martin

Aston Martin replaces Tobias Moers with former Ferrari boss

Amedeo Felisa takes over from Tobias Moers as Aston Martin chairman Lawrence Stroll rings the changes.
4 May 2022
The 10 BIG questions for the 2022 Formula One season answered
Two Formula 1 cars on track
Formula One

The 10 BIG questions for the 2022 Formula One season answered

Totally reinvented cars, new-generation drivers on the up and a resumption of the intense Hamilton-Verstappen rivalry – F1 in 2022 promises to be a cr…
16 Mar 2022

Most Popular

Range Rover vs Bentley Bentayga: 2022 twin test review
Range Rover vs Bentley Bentayga - both cars front tracking
Car group tests

Range Rover vs Bentley Bentayga: 2022 twin test review

All-new Range Rover takes on Bentley Bentayga in luxury SUV face-off
2 Jul 2022
Best car manufacturers 2022
Best car manufacturers header

Best car manufacturers 2022

We reveal the UK’s best car brands based on the feedback from car owners who took our 2022 Driver Power survey...
29 Jun 2022
How to find the cheapest petrol and diesel near you
Diesel pump
Tips & advice

How to find the cheapest petrol and diesel near you

Cheap fuel is hard to come by in the UK at the moment but there are ways that you can minimise what you pay for petrol and diesel
1 Jul 2022