Aston Martin has received new investment of £182m from a consortium led by the Canadian billionaire Lawrence Stroll who owns the Racing Point F1 team. As part of the deal, the F1 team will be renamed Aston Martin F1 team with effect from the 2021 season.
It follows a poor financial performance in 2019. The announcement was accompanied with news that its investment in electric vehicles will be delayed beyond 2025.
The development of its fully-electric Rapide E has also been put on hold. Deliveries had been expected to start this year.
Dr Andy Palmer, Aston Martin Lagonda President and Group CEO, says: “Today’s fundraising is necessary and provides a platform to support the long-term future of the Company. Mr. Stroll brings strong and proven expertise in both automotive and luxury brands more widely which we believe will be of significant benefit to Aston Martin Lagonda.”
He adds: “Following a comprehensive review, today we announce a series of immediate actions to reset, stabilise and de-risk the business, positioning it for controlled, long-term profitable growth. These include rebalancing supply-demand dynamics, reducing capital expenditure and the re-phasing of some future product launches, together with cost-efficiency initiatives.”
Penny Hughes, Aston Martin Lagonda Chair, says: “The difficult trading performance in 2019 resulted in severe pressure on liquidity which has left the Company with no alternative but to seek substantial additional equity financing. Without this the balance sheet is not robust enough to support the operations of the group. Notwithstanding recent weak trading, the strength of the Aston Martin brand and our expanding portfolio of cars has allowed us to attract a strong new partner in Mr. Stroll to support the turnaround of the business.”
Lawrence Stroll says: “I, and my partners, firmly believe that Aston Martin is one of the great global luxury car brands. I believe that this combination of capital and my experience of both the motor industry and building highly successful global brands will mean that, over time, we fulfil Aston Martin Lagonda’s potential.”
Aston Martin says the mid-engined portfolio remains a key focus for the company starting with Valhalla in 2022.