For the most part, we still associate Aston Martin with high-performance and exclusivity. But now, the Aston Martin has become synonymous with losses. Even before the pandemic, Aston Martin wasn’t in the best position to make record profits. For 2020, the British automaker’s saving grace was supposed to be the DBX, its first-ever SUV. But even the DBX might not be enough to save Aston Martin.
Aston Martin’s first-half loss
Much of Aston Martin’s recent problems stemmed from the fact that the company made too many cars that they couldn’t sell. Overproduction is never a good thing, but it’s especially problematic for an exclusive automaker like Aston Martin. COVID-19 has derailed the company’s goal of becoming the British version of Ferrari. The pandemic has also held up production at its main facility in Gaydon, England, till the end of August as AutoNews reports.
Aston Martin posted a first-half loss of $206 million and a negative free cash flow of $481 million. During this same period, Aston Martin began building its new DBX SUV. The company saw a boost in sales for the June quarter. CFO Ken Gregor expects the DBX deliveries to increase cash flow, but it’s still too early to tell.
The DBX signifies a new era for Aston Martin
The DBX officially drove off the production lines in early July. Aston Martin announced this new model four years ago, so this was a big deal. What makes the DBX so unique is that it uniquely blends ultra-luxury with everyday practicality.
Aston Martin has enormous plans for its DBX lineup. The first DBX variant features a 4.0-liter twin-turbo V8 engine that generates 542 horsepower and 516 pound-feet of torque. This V8 is mated with a nine-speed automatic transmission, both of which are provided by Mercedes-AMG. Supposedly, the DBX can go from 0 to 60 mph in 4.3 seconds.
In addition to the standard DBX model, we expect a hybridized version and an all-electric variant. The standard DBX can seat up to five people, and there are whispers of a three-row version coming out.
Aston Looking ahead
With the DBX, Aston is looking to compete in the already ambitious ultra-luxury SUV class. The DBX’s main competition is the Lamborghini Urus and the Bentley Bentayga. Aston is confident that its first-ever SUV is a worthy contender.
To usher in the new Aston era, the company has selected Tobias Moers as its new CEO. Moers was previously the chief of Mercedes-Benz AMG and will officially replace Andy Palmer at the beginning of August. Moers, along with chairman Lawrence Stroll are optimistic about Aston’s future.
“We are restoring exclusivity to our sports cars,” Chairman Stroll said in a video uploaded on Aston Martin’s website. “Rebalancing supply to demand, which in the short term means lower wholesale volumes but necessary for future success.”Aston Martin