Home Auto Coronavirus does not help (even anything) Aston Martin


Coronavirus does not help (even anything) Aston Martin

by ace
Coronavirus does not help (even anything) Aston Martin

Aston Martin is going through difficult times. Despite the excellent vehicles it manufactures, the large investments made in the design of the SUV, together with the delays in its production, exposed the financial capacity of the manufacturer. Not that the DBX lacks potential – that's what the powerful coupe-like SUV is called – but until deliveries to customers start, "vile metal" doesn't enter the manufacturer's coffers.

The strong investment made to design and produce the hyper sports Valkyrie and Valhalla also did not contribute to the financial strength of the English brand, the first with 1176 hp and the second with “only” 1000 hp. The Valkyrie was expected to be delivered in December, but so far nothing, which means that around 430 million euros have not been cashed, as a result of the 150 units (all sold) at 2.86 million each.

But Aston Martin's most recent “problem” has to do with the consequences of falling stock prices. The English manufacturer benefited from an injection of spirit (and capital) with the entry of Canadian Lawrence Stroll, leading an investment fund that injected 318 million pounds and acquired 16.7% of the builder for 182 million pounds (about 200 millions of euros). It happens that this operation occurred when each security was traded for 4.97 pounds (5.45 €). But, with the coronavirus crisis, Aston Marton's shares continued to fall, as if they themselves were sick with a disease, now being quoted at 2.25 pounds. This reduction in the British company's value to less than 50% allowed Stroll to hold 25% of the manufacturer, increasing its share, without Aston Martin benefiting from the corresponding capital increase. And since the Covid-19 crisis is expected to worsen in the coming months, it is quite possible that Stroll still sees a substantial increase in its share in the English company.

The Observer is the impossible project, which was launched without advertising, without much money and with the audacity to be different. We had only one argument: our journalism, our work, our reports and investigations, our ability to innovate and create new products, our boldness in dealing with new topics, our courage in breaking with ideas made, our youth. Today we are visited regularly by seven million readers every month and we have become a central reference in Portugal. Today more than ever, it is all of these readers who make the Observer, just as the Observer contributed to making their lives as citizens richer. Not least because no citizenship survives without a free press, paid for by its readers.

Subscribe now


Related Articles

Leave a Comment

one × four =

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More