Aston Martin Saved From Certain Death By Last Minute Cash Infusion

Aston Martin has been rescued by a £182 million investment from Lawrence Stroll, owner of Racing Point F1. Also chipping in another £318m are many of the existing shareholders. As part of the deal, the Racing Point team will become Aston Martin Racing from 2021.

And make no mistake, this £500m package is indeed a rescue. Aston had done so badly in the past year that getting the vital DBX SUV into production was beginning to look unlikely. This deal should secure that future.

skytop - 1/31/2020 10:42:26 AM

+2 Boost

Aston Martin is going to needed more than a pail full of cash to save its sinking ship.
Aston needs broader appeal and become more price friendly.

PUGPROUD - 1/31/2020 12:42:05 PM

0 Boost

Stroll invests over $200 million to insure his son Lance keeps his F1 driver's seat. Dad wanted him to get second seat on MB's team but they passed for now.

1lostVW - 1/31/2020 12:54:33 PM

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Carnival Barker Palmer pulled his last Rabbit out of the hat... Will $200m actually save Aston? In the world of auto manufacturing that is chump change... Aston Martin's board room must need a back up oxygen supply to keep all the inflated egos in check... 12 months from now when Stroll realizes he bought an illusion and he sees how many actual unsold units are on the ground world wide, they are going to need more than back up oxygen to keep the company open.

MDarringer - 1/31/2020 10:22:47 PM

+1 Boost

Geely is the answer.

CANADIANCOMMENTS - 1/31/2020 1:01:43 PM

+2 Boost

Hopefully this investment can be a bridge to where they need to be with the DBX contributing the lions's share of sales and profits. A smaller version to compete with a Maccan would be great as a next step. Wasting money on mid engined supercars is not something I would have approved. Aston's should also have V6 and V8 engines in my view, not V12's. They have no history with this engine type really.

CANADIANCOMMENTS - 1/31/2020 1:14:57 PM

+2 Boost

With $1B in long term debt they are not out of the woods yet. In contrast Ferrari is a $2.5B Euro business. This is where the firm needs to get to in revenue. The DBX is key to this. At 5,000 units a year it would contribute over $1B USD to the firm. A smaller SUV could sell in bigger numbers. F1 merchandise which is a key contributor at Ferrari would also be a great addition revenue generator at Aston Martin.

MDarringer - 1/31/2020 7:36:23 PM

0 Boost

Aston needs platform sharing.

The AMGGT should be their platform.

CANADIANCOMMENTS - 1/31/2020 7:50:04 PM

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They should have taken the Geely offer and worked it to be equal to Strall's. More long term stability that way. Surprised Mercedes did not step in.

qwertyfla1 - 1/31/2020 9:14:33 PM

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Aston is such a small niche player that if they were to fold would it really be noticed?

Wouldn't it of been cheaper (and perhaps more feasible) for Stroll to buy a seat via sponsorship rather than drop such bank on such an obscure brand with a questionable future? He has obviously made his money in fashion so is this just bragging rights then or has he gone all "Frank Stronach" crazy?

CANADIANCOMMENTS - 1/31/2020 9:32:54 PM

+2 Boost

@QEW- I didn't think he would have the winning bid. The other investors kicked in $334M or something like that to bring the total to $500m in new capital. Clearly somebody believes in the brand. It is a 100+ year old company and the maker of the most famous car in the world. Better with a bigger owner. Much harder being independent unless the SUV line really takes off.

MDarringer - 1/31/2020 9:33:46 PM

0 Boost

The TVR Griffith is actually a pretty good design. If Lotus, Aston, and TVR banded together on platforms, they'd all be solvent.

CANADIANCOMMENTS - 1/31/2020 9:51:58 PM

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@MD- Yep. Aston doesn't really have a platform. All its cars are made from folded, bonded and riveted aluminum pieces. A bit like Lego.

MDarringer - 1/31/2020 10:16:20 PM

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The TVR Griffith is a Gordon Murray design that could easily be reskinned as an Aston. Aston is also without an "affordable" car. They need a $100K "volume" model like a "DBV6" with a Ford Ecoboost under the bonnet. The DBX should have been a $125K model.

CANADIANCOMMENTS - 1/31/2020 10:21:01 PM

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Then they have to change their view of the brand to have cheaper volume models. Palmer has them and those before too holding to the view that they are the British Ferrari. With Stroll driving things and with them now having their own F1 team in 2021, they are going further down this path. Who knows what the future holds.

MDarringer - 1/31/2020 10:21:44 PM

0 Boost

A shrewd move would be to buy the Corvette C7 tooling and reskin it as an aston or a TVR or a Lotus.

CANADIANCOMMENTS - 2/1/2020 10:07:45 AM

0 Boost

I'd cancel the mid engine Vanquish, do the short run Valkyrie and Valhalla and make a Macan sized SUV to go along with the DBX. It could be the DBXS Or DBC for CUV.

MDarringer - 2/1/2020 12:02:54 PM

+1 Boost

Agreed.

Aston is trying to retreat up-market with hypercars and that's exactly what NOT to do.

CANADIANCOMMENTS - 2/1/2020 12:13:31 PM

+1 Boost

Yep. I would do the opposite. Instead of hypercars, if they can sell a recreation DB5 or DB4 GT for vintage racing for about $1.5-$2.0M, I would keep making them until there were no more buyers. Much more on brand and part of being stewards to the legacy of the marque.

MDarringer - 2/1/2020 12:34:10 PM

+1 Boost

DB6 / V6T / 2-place coupe/convertible $90K
DB8 / V8 / 4 place coupe/convertible $120K
DB8 Vanquish / V8T 2 place coupe $150K

DBX / $100K
DBF / $120K coupe version