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Aston Martin Cuts Sales, Investment Outlook
Iconic British carmaker Aston Martin Lagonda Ltd. has lowered its unit sales forecast 11%, trimmed its investment plans and is poised to cut production.
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Iconic British carmaker Aston Martin Lagonda Ltd. has lowered its unit sales forecast 11%, trimmed its investment plans and is poised to cut production.
The luxury marque reports its retail sales in the first half jumped 26%. But wholesales, which determine company revenue, advanced only 6% to 2,440 units. Double-digit gains in the Americas and Asia Pacific were offset by double-digit declines in Europe.
Aston Martin, which expects further sales deterioration through 2019, adds that it is “planning prudently” for 2020. The carmaker says it may reduce its investment spending this year by as much as £40 million.
One bright spot: The plans to launch Aston Martin’s first crossover model, the DBX (pictured in camouflage), in December remain on track. The company will begin taking orders next month at the Pebble Beach Concours d’Elegance in California.
In the meantime, the Aston Martin now expects to wholesale about 6,400 cars in 2019 instead of the previously forecast 7,200 units. The company also cautions that income from consulting services will drop by £19 million ($24 million) this year.
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