Aston Martin wants to raise funds to expand its range of models

Article by Andrew Christian, on December 13, 2014

Aston Martin is getting ready to raise funds –by issuing either new shares or bonds – to expand its offerings to include SUVs, luxury sedans and hybrid models, two sources privy with the matter told Reuters. They said Aston is also working on plans to extend its current recovery strategy by three years to 2020. No thanks to an aging model range and weak investment, Aston failed to capitalize on a huge surge in the luxury car market in the last five years.

The carmaker only delivered 4,200 cars in 2013, which is not even close to its pre-financial crisis peak of 7,300 units in 2007. The sources also remarked that Aston Martin is reviewing debt- or equity-raising options to get enough funds to finance a bigger plan.

The carmaker expects to gain more cash by more efficient management of working capital like vehicle and parts inventory. One of the sources remarked that any cash-raising activity would allow Aston to gain GBP100-GBP150 million ($156-$234 million), with any new shares offered to current investors.

Aston has already commenced updating its existing models under a GBP500-million investment strategy.

The same strategy calls for a replacement for the DB9 in late 2016 and a return to profitability in 2017. Aston Martin chief executive Andy Palmer recently unveiled a DB10 concept car that will star in the next Bond film, "Spectre." The DB10 is expected to provides a glimpse of the styling direction for future production models.

Topics: aston martin

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