Aston Martin posts £230 million loss for first half of 2020

Aston Martin's losses have increased by 67 per cent over the same period in 2019

Aston Martin has issued its financial statement for the first half of 2020, with the British supercar brand posting a £230 million loss for the period, some 67 per cent down on June of last year. 

The company mainly attributes its financial downturn to the market difficulties caused by the coronavirus pandemic. Aston Martin’s sales were down 41 per cent as a direct result of the pandemic and lockdown, due to the widespread closure of its dealerships and factories.

In response, Aston Martin has planned a series of cuts, reducing its operating costs and streamlining manufacturing, which should curb the company’s spending by 2021 – saving an estimated £28 million.

Slow sales means a surplus of existing cars. So, Aston Martin will work to reduce its dealer stock by 869 units between now and 2021. The stock reduction represents the three months-worth of sales the brand lost during the lockdown and closure of dealers. 

Elsewhere, Aston has seen the start of a recovery in its Chinese business, with sales climbing 11 per cent over June 2019.

Following the appointment of Lawrence Stroll as the new Aston Martin CEO, the firm raised £688 million as part of a new rights issue. The move has provided the company with enough funding to push the DBX SUV through into production.

Stroll said: “Obviously, it has been a challenging period with our dealers and factories closed due to Covid-19. We have been  fully engaged in executing the initial reset in order to achieve our ambition to build Aston Martin into one of the great global luxury car brands.

“The new DBX is critical to our successful future and I am delighted that, after more than a month of closure, production restarted and initial deliveries have now been made. Also critical to our future is the ability to market and engage with our customers. 

“From next year, we will have the great benefit of a highly competitive Aston Martin branded Formula One team giving us a significant global marketing platform to further strengthen our Brand and engage with our customers and partners across the world.”

Hungry for more Aston Martin news? Now read all the latest on the DBX SUV

Recommended

Limited-run Aston Martin DB5 Junior launched for new James Bond film
Aston Martin DB5 replica No Time To Die
Aston Martin

Limited-run Aston Martin DB5 Junior launched for new James Bond film

Just 125 examples of the dinky Aston Martin DB5 replica will be built – and, like the iconic on-screen car, each will be fitted with a range of hidden…
21 Sep 2021
New-car market sees weakest August since 2013
Tesla Model 3 - front
News

New-car market sees weakest August since 2013

Semiconductor supply issues continue to hold UK new-car registrations back, with market down 7.6 per cent on 10-year average
6 Sep 2021
UK car production sees worst July numbers since 1956
Production line
News

UK car production sees worst July numbers since 1956

UK car manufacturing fell 37.6 per cent year-on-year in July 2021 due to the semiconductor shortage and pingdemic
25 Aug 2021
Bank holiday traffic expected to return to pre-Covid levels
Traffic
News

Bank holiday traffic expected to return to pre-Covid levels

Congestion is expected over the August bank holiday, but drivers plan on staying closer to home
24 Aug 2021

Most Popular

Exclusive: banned 71-reg number plates released
Number plates
News

Exclusive: banned 71-reg number plates released

Latest DVLA list of banned UK registrations reveals which 71-plates are too rude for the road
21 Sep 2021
'The death of cheap cars will be a travesty for personal mobility'
Opinion cheap cars
Opinion

'The death of cheap cars will be a travesty for personal mobility'

Our appetite for small, cheap cars is as strong as ever - although Mike Rutherford warns they may no longer be profitable
12 Sep 2021
New MG HS plug-in hybrid 2021 review
MG HS PHEV - front
MG HS SUV

New MG HS plug-in hybrid 2021 review

We find out where the new MG HS PHEV fits in the highly competitive plug-in hybrid SUV sector
21 Sep 2021