Aston Martin is expecting financial turnaround after 2016

Article by Andrew Christian, on May 13, 2014

Aston Martin is hoping to return to profitability after 2016, when it would start reaping the benefits of a five-year GBP500 million ($843.57 million) investment program. Chief financial officer Hanno Kirner told Reuters in an interview that once the investment phase is completed, they are “very, very confident” that it would take the carmaker to a very sustainable profitability.

Aston Martin said in April that it was making investments in new electrical and electronic technology alongside a 2013 strategic partnership with Daimler, by which the British carmaker benefits from shared engine development.

Aston Martin has partnered with the Mercedes-AMG division to develop a new generation of bespoke V8 engines, aimed at helping it better compete with the offerings of Bentley, Porsche and Jaguar Land Rover.

The British carmaker owned by Kuwaiti and Italian private equity groups experienced a chaotic 12 months following the discontinuation of its Cygnet minicar in October.

The carmaker was also hurt by lack of offerings in the SUV segment that has so far resisted the slump in Europe. While Aston Martin has reiterated its focus on sports cars, product chief Ian Minards disclosed that he is "open-minded" to a possible SUV.

Aston Martin logged an adjusted pretax loss of GBP24.6 million in 2012, down from GBP21.2 million in 2011. Aston Martin said it is targeting to double sales by 2016, to be boosted by the new V8-powered versions of the Vantage and DB9 models.

The company recently had to recall 17,590 cars in February after finding out that a supplier from China was using fake plastic material in its production of pedals.

Topics: aston martin, sales

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