Aston Martin spoke about losses in 2019

Aston Martin spoke about losses in 2019

February 27, 2020 0 By autotimesnews

The British company hopes that the investment will strengthen its position in achieving long-term profit.

Aston Martin Lagonda Ltd announced a loss of GBP 104.3 million last year, while revenue fell due to lower sales, but company executives insist that a recent investment and restructuring plan means it can still provide profitable growth in the long run.

While British firm retail sales grew 12% in 2019, wholesale car dealership sales fell 9%. A total of 5,862 vehicles were sold to dealers, compared with 6,441 in 2018. Higher selling costs and a lower rate of return for each car also hit the firm, leading to a 9% reduction in revenue to £ 997 million.

Aston Martin recently announced a “reset plan” after a major investment by a consortium led by billionaire Lawrence Stroll, which will lead to an investment of £ 500 million in the company. The company also changed its production plan and states that actions in 2020 will allow it to “start working as a real brand of luxury cars.”

    Aston CEO Andy Palmer called 2019 “an extremely difficult period” for the firm, but added: “We reviewed our business plan to reload, stabilize and eliminate business risk, positioning it for controlled long-term profitable growth.”