Aston Martin receives investment to launch DBXMarch 31, 2020
Aston Martin shareholders have approved a financial assistance package led by Canadian billionaire and Racing Point F1 team owner Lawrence Stroll.
An investment of £ 536 million ($ 659 million) from the Yew Tree consortium led by Stroll will help the British automaker launch DBX in production. The automaker will eventually resume work at its St. Atan plant after it was previously forced to close it due to the coronavirus pandemic.
Aston Martin DBX is seen as an image car for the company and has the potential to be its best-selling model. In addition to confirming the investment in Aston Martin, Stroll again promises to join Aston Martin as a Formula 1 working team next season. Moreover, it is expected that the existing Racing Point team will be renamed Aston Martin. Consequently, the current sponsorship deal by the British manufacturer with Red Bull Racing will end at the end of this season.
Despite significant cash infusions, this is not all good news for Aston Martin. Shortly after the investment from Stroll was received, the car manufacturer opened a new $ 100 million credit line, warning that the business would run out of money on current annual spending plans.
“The company believes that the group does not have sufficient working capital to fulfill its requirements within 12 months after the publication of the Prospectus [February 27],” Aston Martin said in a statement.
The company also noted that increased exposure to coronavirus exacerbated uncertainty as a revised plan was presented on March 13th. Aston Martin has another $ 100 million in borrowed funds that it can raise before July 8, if necessary.
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