Aston Martin bleeds £1m a day as supply chain woes and China seek rate cuts to meet targets
Aston Martin Lagonda, the only British carmaker listed on the London Stock Exchange, is facing serious financial problems, missing all 2024 targets such as production cuts, sporting problems, and a sharp drop in the impact of Chinese demand.
The luxury car maker, led by new CEO Adrian Hallmark, is burning through more than £1 million a day, with total debt rising to £1.21 billion—almost 50% more than last year.
The company, controlled by executive chairman Lawrence Stroll and Saudi Arabia’s PIF and Chinese carmaker Geely, has faced ongoing challenges. After a disappointing third quarter, in which Aston Martin reported a loss of £12 million despite an 8% rise in revenue to £391 million, it revised its outlook. Hallmark, which previously worked with Bentley, has lowered its production target by 14% to 6,000 vehicles annually and has re-evaluated growth expectations.
One of the biggest setbacks for Aston Martin has been the drop in demand for the DBX 4×4, particularly in China—the world’s largest car market—where sales of the model fell by 54%. Previously the best selling Aston, the DBX now accounts for only 30% of sales. The company’s overall turnover remains down 17% this year, with revenue down 4% to £994 million.
In response to these obstacles, Aston Martin has abandoned its goal of achieving a cash-flow breakeven by the end of 2024. Hallmark remains optimistic about a “diversified, flexible, and desirable portfolio,” asserting that a stable inventory and stable markets will. return the momentum. “We are on track to meet our revised guidance for the full year,” he said, emphasizing a renewed focus on adjusting production rates to match market conditions and supply constraints.
Aston Martin shares rose slightly following the announcement, closing at 111p, but the shares remain far from the £4.3 billion valuation the company boasted when it floated six years ago. As the automaker faces increasing competition in the electric vehicle segment, all eyes will be on its ability to stabilize operations and capture market share amid mounting challenges.
