And it’s causing big problems for the automaker.
It's no secret that Aston Martin's financial situation hasn't been great in 2019. Back in July, Aston Martin had to reduce its sales and profits forecasts due to falling sales in Europe and the UK combined with "macro-economic uncertainties." This came as a huge blow since Aston Martin's sales were up in 2018 compared to 2017.
Unfortunately, the situation hasn't improved since then, as Aston Martin has announced a third-quarter pre-tax loss of £13.5 million ($17,309,362) following a 16 percent drop in car deliveries. For comparison, Aston Martin made a profit of £3.1 million ($3,972,030) in the same period last year and a £79 million ($101,229,415) loss in the second quarter of 2019, which is worrying.
Despite this, Aston Martin's shares rose by eight percent as the automaker kept its full-year profit guidance intact. Low demand for the Aston Martin Vantage is one of the key factors being blamed for the company's recent loss. Only 878 examples of Aston Martin's entry-level sports car have been sold this year in Europe – that's less than half the number of Porsche 911s sold in September alone.
"The segment of the market in which Vantage competes is declining, and notwithstanding a growing market share, Vantage demand remains weaker than our original plans," CEO Andy Palmer told the Financial Times. "As a consequence, total wholesale volumes are down year-on-year as we balance growth, brand positioning and dealer inventories."
"We see pressure on volumes continuing into the end of the year and now expect total wholesales to be lower than previously guided, but within the range of market expectations," Palmer added.
Aston Martin will reveal the DBX as the company's first-ever SUV on November 20, which should help boost profits. To say that the DBX will become Aston Martin's most important model ever is an understatement. It couldn't arrive at a more crucial time for the company.