The luxury car manufacturer Aston Martin reveals it has sunk £139m (€162.52m) into red during opening quarter
ADVERTISEMENTShares in Aston Martin plunged by as much as 14% on Wednesday after the struggling luxury carmaker revealed worse than expected first quarter losses.
The company said it had sunk £139m (€162.52m) into the red during the first three months of the year, as losses rose almost 90% compared to £74m a year ago.
This stemmed from a 10% fall in overall sales to £268m, largely fuelled by a 63% drop in the number of SUVs sold.
The results come after the executive chairman of the car maker, Lawrence Stroll, criticised the UK Government’s net zero ban on petrol cars.
In comments made last month, Mr Stroll warned that attempts to force the sale of more electric cars was a mistake as regulations were moving faster than consumer demand.
Commenting on his company's latest results, he said the figures reflected "an expected period of transition" as the luxury car maker halts production of old models in preparation for a refreshed line-up this year.
Aston Marton has already delayed the launch of its first EV to at least 2026 and says it is looking at introducing more plug-ins first.
It will mean the car maker will have an entirely fresh lineup on sale by the end of the year.
However, the quarterly loss was significantly larger than the £93m predicted by analysts, spooking a number of investors.
New models to come in this year
But in a statement, Mr Stroll remained upbeat on his company's prospects: "2024 is a year of immense product transformation at Aston Martin, with the introduction of four new models to the market before the end of the year.
"Our first quarter performance reflects this expected period of transition, as we ceased production and delivery of our outgoing core models ahead of the ramp-up in production of the new Vantage, upgraded DBX707 and our upcoming V12 flagship sports car which we've confirmed today.
"As part of our ongoing programme of ultra-exclusive models, we will deliver a new special in the fourth quarter of the year."
