Aston Martin will spend over $300 million to “form the strongest and most diverse portfolio in [its] history,” according to Aston Martin’s CEO Andy Palmer. Aston Martin Lagonda is expecting to receive this amount to develop its revolutionary DBX crossover and other vehicles that are outside its usual sports car tradition.
The automaker has raised 200 million pounds, about $307 million at the current exchange conversion, from two batches of new preferred shares from Aston’s two majority shareholders, Investindustrial and Tejara Capital. The company reported that on April 29, the first half of the investment arrived. Meanwhile, the second half will be issued over the next 12 months.
In a statement, the company said that the added investment will make it possible to make the DBX and other new luxury vehicles. The automaker presented the concept crossover – the DBX – last March at the Geneva Motor Show. It’s likely that sales will begin around 2019. The vehicle is targeted at attracting more female buyers as well as the younger generation to the brand, which has mostly had male customers.
Furthermore, Aston intends to use more funds for the development of a long-wheelbase sedan that’s mainly aimed at wealthy Chinese buyers who prefer to have a chauffeur. Aston believes that by widening its customer base and making its presence felt in more profitable segments, it will become self-sufficient instead of depending on investors’ cash input.
The automaker will also be overhauling its entire line of sports cars by the end of the decade. Daimler, the parent of Mercedes-Benz, has a 5% share in Aston. Under this agreement, they are developing a turbocharged V-8 engine and an electrical architecture for vehicles in the future. It’s a critical time for Aston to receive the investment.
In 2012, it incurred losses of around $55 million in 2013 and $41 million in 2012. The last new model that it had released was the 2013 Vanquish, which was equipped with a slightly modified V-12 engine that has appeared in other cars for years.
It will be in 2016 that Aston will launch an all-new model. This will coincide with the unveiling of the DB-9 successor. It’s believed that this car will be powered by a V-12 engine instead of the turbocharged V-8 that Aston and Daimler are working on.