The new 2021 Aston Martin DBX, the first SUV for the British brand, was planned to roll out this year slowly. But the global COVID-19 variable has had a negative financial impact on many manufacturers worldwide. Resultantly, manufacturers are delaying new product reveals. Aston Martin is no different. It also has taken a hit to the bottom line. But, the word from the luxury carmaker is that DBX roll out will continue as planned.
Aston Martin was struggling financially before the COVID-19 pandemic lockdown. But, it has since received additional buy-in from a consortium of investors to keep it afloat. Still, the automaker had to give up 25% ownership to make that happen.
Aston Martin Chief Executive, Andy Palmer told Reuters,
“We were obviously fairly significantly hit by COVID-19, starting with China in January but more clearly in what we saw as it came across towards Europe and the United States,”
The company also said,
“Given the ongoing uncertainties, as is prudent, the company continues to review all future funding and refinancing options to increase liquidity,”
The stakes are high
Aston Martin is counting big on the DBX. The luxury performance SUV is expected to be the hero of the company turnaround. The all-aluminum vehicle will add an additional revenue stream as it joins other models in the company lineup. It is anticipated to become the volume leader quickly. Additionally, it is geared to attract more females to the brand, which has been historically largely male. So, in essence, the new DBX model will cast a wider net for the company to right the ship.
The DBX development, however, has been time-consuming and costly. The DBX began being developed back in 2015 and has required the creation of a new factory in Wales, England. During that development time, the company grew tighter on funds. So tight, in fact, that some were speculating if Aston Martin would go bankrupt before the DBX was fully rolled out.
Now, with new funding in place, Aston Martin is proceeding forward with plans to roll out the new DBX. Sales in England have already begun. Also, according to company statements today, the DBX roll out in other markets will not be delayed due to the shutdown. This means that deliveries of the DBX are expected to begin in the United States in late 2020, as a 2021 model year vehicle. Sales in China, the automaker’s fastest-growing market, are also expected to roll out there late this year.
Hopes versus reality
Bringing a vehicle to market and having the market accept it are two different things, though. It is good news that there will not be a delay in production. What remains to be seen, however, is if the DBX will be snapped up as quickly as Aston Martin hopes. Initially, order books have been filling quickly for the SUV. So, that is encouraging news for the brand. But, will it continue to be strong? The future of the automaker depends on it, and only time will tell.