Aston Martin Looks For New Investors As Financial Troubles Escalate

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The luxury automaker seems to be in familiar but unwelcome territory.

Aston Martin's financial situation has been a true rollercoaster over the past few years. This constant fluctuation in its fortunes has led to the brand becoming an attractive proposition for others to take over. While its motorsport and automotive divisions are officially separate, the fact that Aston Martin chairman Lawrence Stroll has not dismissed Audi's interest in the F1 team suggests that money issues are affecting both sides of the same coin. A recent leadership change has taken place in an effort to fix some of these issues, but the luxury automaker has recently disclosed through its financial reports that it is in over $1 billion of debt. Couple that with the ongoing delays surrounding the production of the Aston Martin Valhalla hypercar, and it should come as no surprise that the British marque is now seeking aid.

2023 Aston Martin Valhalla Emblem Aston Martin
2023 Aston Martin Valhalla Rear Angle View Aston Martin
2023 Aston Martin Valhalla Lateral View Aston Martin

According to a report from Autocar, the luxury manufacturer is now looking for fresh investment to safeguard its future. According to the publication, Aston Martin's debts have now crested £1.2 billion (almost $1.5 billion), meaning that it is unlikely to be able to secure more funding through loans. This financial uncertainty has seen its stock price reach new lows, but there's no reason to assume that Stroll or the company's other owners will let Aston Martin fold.

A statement made on recent reports of financial trouble reads as follows: "Aston Martin Lagonda (the "Company") notes recent movements in its share price and media speculation regarding prospective fundraising efforts. The Company continues to trade in line with expectations for full year 2022 and reaffirms its financial guidance for full year 2022, subject to movements in FX rates, as provided at first quarter results on 4 May 2022."

2022 Aston Martin DBX707 Emblem Aston Martin
2021-2023 Aston Martin DBX Badge Aston Martin
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The statement goes on to note that it has plenty of orders for new cars, with these increasing in recent months. Sports cars are sold out into 2023 and orders for the DBX have risen by more than 40% compared to 2021, the latter likely kindled by the arrival of the world-beating DBX707. Aston continues by saying that Valkyrie production is picking up pace and the company is "delighted with the customer and market reaction to new model derivatives."

This sounds to us like dressing broccoli in icing sugar. Aston Martin is trying to convince the outside world that everything is okay. In fact, the statement adds that "the Company regularly keeps its funding options under review." This means that it is indeed open to further investment, if not actively seeking it.

2022 Aston Martin DBX707 Front Angle View Aston Martin
2022 Aston Martin DBX707 Rearward Vision Aston Martin

But Autocar's sources have made claims that stink of desperation: "The fundraising could include bringing a significant new investor in, potentially offering a position on the company's board as an inducement for a holding that insiders suggest could be valued at upwards of £200 million," or more than $240 million. These sources go on to suggest that one investment fund on the west coast of the US and one in Saudi Arabia are the frontrunners for the funding. Despite being separate, both the road car and the motorsport business may benefit from such an investment. It's unclear when this deal is expected to be finalized, but with Aston Martin having been declared bankrupt seven times since its founding in 1913, we hope it can find a winning recipe and become self-sustaining soon. If not, maybe it's time to let Mercedes take full control.

2022 Aston Martin DBX707 Rear Angle View CarBuzz
2022 Aston Martin DBX707 Front Angle View CarBuzz
Source Credits: Autocar

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