Aston Martin commits to new £200m investment programme
WARWICKSHIRE-based sports car manufacturer, Aston Martin Lagonda is to commit to a £200m funding programme for the production of its latest models – including a new crossover vehicle.
The Gaydon company said the investment, which has the backing of its major shareholders, would drive the future of the company as it sought to develop its strategic business plan.
The investment could mean further expansion for the company – with rumours of a possible new factory being developed close to Birmingham’s automotive hub.
Business leaders in Coventry and Warwickshire have welcomed the move saying it will be good for the automotive industry and the wider economy of the area.
The additional capital investment will come in the form of £200m of preference shares; £100m of which were issued on April 29 with the remaining £100m – already subscribed for – being issued in the next 12 months.
The company said the investment in new luxury models was at the core of its strategic vision. Under the plan, the company will expand into the luxury GT crossover market with the introduction of a new vehicle based on the DBX concept shown at the recent Geneva and Shanghai motor shows.
Aston Martin Lagonda CEO, Dr Andy Palmer said: “This additional long-term funding, will enable us to add extra model lines and broaden our presence in the luxury market segment by the end of the decade. The DBX concept, has generated interest far beyond our expectations. The additional investment announced today will allow us to realise the DBX and other new luxury vehicles that will form the strongest and most diverse portfolio in our history.
“Our shareholders have shown their strong commitment and confidence in the management team to execute the strategic plan.”
Separately, Aston Martin Holdings (UK) has announced its results for the 12 months to December 31, 2014. They saw the company delivered full year revenues of £468m and adjusted EBITDA of £66m whilst simultaneously increasing its product development spend by 45%.
In 2015, the company expects global demand for its luxury sports cars to remain high, while it continues to develop and expand its current range starting with first customer deliveries of the limited edition track-only Aston Martin Vulcan and the race inspired, Vantage GT12.
Responding to the investment announcement, Jonathan Browning, chairman of the Coventry and Warwickshire Local Enterprise Partnership, said: “This is good news for Aston Martin, its workforce, and for the whole of Coventry and Warwickshire.
“The company is a world-famous, much-admired brand and it is encouraging to see it developing in what is a tough and competitive market. Their plans, supported by their investors, suggest exciting years ahead for the company and its suppliers.”
“Aston Martin has recently expanded in the area, and we welcome the chance to continue working closely with them. Advanced manufacturing and engineering is a key sector in Coventry and Warwickshire, and Aston Martin is one of the most famous names in the sector and brings substantial value to our area.”