AutoBeta(AutoBeta.net)06/27 Report--

According to media reports, Aston Martin announced that it would issue new shares to raise funds, worth up to 20% of Aston Martin's existing share capital.

Aston Martin's announcement of a new share issue to raise funds has a lot to do with the current global auto market environment and Aston Martin's internal operations.

Aston Martin's cumulative global sales in 2019 were 5819, down 7 per cent from a year earlier, according to the data. Aston Martin said that due to the market downturn, there has been a decline in demand for luxury cars in Europe, especially in the UK, resulting in poor sales, which continued throughout 2019.

As a result of the further decline in sales in 2020, Aston Martin's profit situation is in trouble. Aston Martin lost 104.3 million pounds (919 million yuan) in 2019, compared with 119 million pounds (1.038 billion yuan) in the first quarter of this year. Faced with such a performance, CEO Palmer also had to admit: "the performance is disappointing."

According to the European Automotive News on June 5, Aston Martin will cut up to 500 jobs as part of a £10 million cost-cutting plan. Aston Martin said the layoffs were designed to help improve profitability and bring the cost base in line with production cuts on the sports car production line.

In an effort to ease the pressure on performance, Aston Martin reached an agreement with Canadian billionaire Lawrence Stroll at the end of January that the consortium led by Lawrence Strol would buy a 16.7 per cent stake for £182 million (about Rmb1.658 billion), which could rise to 20 per cent after completing a total of £500m. But after receiving financial assistance from a consortium led by Lawrence Strol, Aston Martin's financial problems remain tight.

With financial assistance from Lawrence Strol, Aston Martin was able to start production of the DBX SUV. At present, Aston Martin's top priority is to promote the smooth delivery of Aston Martin DBX, the brand's first SUV product.

It is understood that Aston Martin DBX SUV has become the key to the company's "turnaround". Aston Martin's first SUV model, with a 4.0T V8 twin-turbocharged engine and four-wheel drive system, is the core competitor of the Bentley Timber, Lamborghini Urus and Porsche Cayenne Turbo S. Aston Martin had predicted that the DBX would sell about 4000, or even 5000, in 2020, making it the brand's best-selling model.

DBX SUV shoulders the mission of turning losses into profits, and the Chinese market is the main battlefield of this model, which will play a key role in the development of the first SUV model. At present, the Chinese market is in a state of accelerating recovery, which plays a positive role in the listing and sales of DBX in the Chinese market. However, as declining sales, poor performance and profit warning make the capital market lose confidence in Aston Martin, there are many variables in the development of the first SUV model in the market.

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