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Aston Martin shares plunge to new low following half-year loss

LONDON — Shares in Aston Martin plunged 17% to a post-flotation low on Wednesday after the luxury British carmaker slumped to a half-year loss, the latest automotive firm to be hit by falling demand in Europe. Aston Martin, best known as James Bond's favorite marque, has been undergoing a turnaround plan since Chief Executive Andy Palmer took over in 2014, designed to renew and boost its model line-up and move into new segments. The plan led to an autumn 2018 stock market flotation. But its shares have since fallen by around three quarters from their 19 pounds float price to below 5 pounds, hit most recently by the group's weak performance in Europe, the Middle East and Africa, where half-year demand fell by nearly a fifth. The group posted a pretax loss of 78.8 million pounds in the six months through June from a 20.8 million pound profit in the first half of 2018. Its shares were down 17% at 4.71 pounds by 0748 GMT. "We are disappointed that our projections for wholesales have fallen short or our original targets, impacted by weakness in two of our key markets as well as continued macro-economic uncertainty," Palmer said. Overall wholesale demand grew by 6% in the first six months as the group posted strong increases in the Americas and Asia, but a decline in Britain and the rest of the continent prompted the carmaker to cut its full-year forecast. Aston has also been hit by expansion costs as it builds a new factory in Wales to make its first sport utility vehicle, and a lower average selling price. The company said that if it requires some additional financing it would pursue the funds from sources such as the debt markets. The global car industry has been hit by weakening demand in China and a drop in demand for diesel vehicles in Europe, as well as the cost of electrification. Nissan reported plunging profits last week and said it would undertake its biggest restructuring plan in a decade, axing nearly a tenth of its workforce. But 106-year old Aston also faces the risk of a disorderly Brexit disrupting its wholly British production, as delays at ports due to new bureaucracy could slow down the movement of vehicles and components. "We do not want a no-deal Brexit because of the disruption that causes to issues at the border," said Palmer.

2019 Aston Martin Vantage ridealong: Going to the extremes

"My job is to make them drive like they look," Matt Becker, Aston Martin's vehicle attributes engineer, tells me. The engine is idling, and we're harnessed inside of the 2019 Vantage test mule's racing bucket seats, somewhere on a frozen lake near the Arctic Circle in Sweden. Since the Vantage is Aston's best seller, and it's representative of the things the brand stands for, it's safe to say this chilly prototype is the most important Aston Martin on the planet right now. "Shall we have a go?" Becker rhetorically asks, looking out at the ice track. "First, with all the systems on. We test and develop this car with systems on and off, at every stage." Becker shifts the Vantage into Drive, and immediately it sounds happier. Under the hood is an Aston-ized, AMG-sourced twin-turbo V8, packing 503 horsepower and 505 lb-ft of torque. It was given the full work-over, and the controller algorithms were developed to make it behave like a proper Aston. Power is channeled through an eight-speed ZF automatic gearbox. How and when the power comes on depends on driving conditions and mode, of which the 2019 Vantage has three: Sport, Sport Plus and Track. Absent is the DB11's GT mode, which fits perfectly on the grand tourer but not on a pure sports car such as the Vantage. Throughout testing, the Vantage stays under heavy camouflage and even sports some DB11 bits at first to deter speculation. But despite the partial DB11 drag, the Vantage will embody CEO Andy Palmer's directive: "[W]e need greater differentiation between the lines." While the DB11 is a striking and elegant grand tourer, the Vantage dials up the aggression over its predecessor. A massive, oxygen-gulping grille dominates the frontend. The car is about the same width as the DB11, but in person, it seems twice as wide as more pedestrian sports cars. Fender vents serve both functional and aesthetic purposes. The lip of the trunk swoops up, a naturally integrated spoiler that will help deliver downforce. But there's a lot more at play than is even immediately evident to the eyes, most important of which is the electronic rear differential. This the first Aston to ever be fitted with an e-diff. As Becker explains: "What that allows us to do is vary the amount of torque across the rear axle that we have, which allows you to make the car very short, very agile. Add in tricks like Dynamic Torque Vectoring, and because we can open up the diff, it's like putting a pole in the ground when you're skiing.

Aston Martin wants to be the Hermes of the car world

Aston Martin doesn't want its wealthy potential customers to perceive the brand as just another sports car maker. The company wants to transform those perceptions so that buyers see its products as luxury goods on par with high-end accessories. If this change can successfully bring in more cash, the business could consider an initial public offering in the coming years. "We seek to position ourselves as the automotive equivalent of Hermes, not as the counterpart of Ferrari." CEO Andy Palmer explained the change to Bloomberg, referencing the boutique French brand. The desire to change buyer impressions comes as Aston Martin pivots away from a focus predominantly on sports cars and more towards high-performance luxury vehicles. For example, the company already has sedans in the lineup like the Rapide and Lagonda Taraf. The future range will also reportedly include an electric Rapide and another Lagonda. The production version of the DBX crossover (concept above) will add one more segment around 2019. However, Aston Martin won't completely abandon coupes because the DB11 will arrive in 2016, and a new Vanquish and Vantage will eventually follow. For Aston Martin to have a future, Palmer believes the company needs to look in new directions, especially with models like the DBX. According to Bloomberg, execs there hope that appealing to more customers could help the business see a net profit in the next three years, which hasn't happened since 2010. To save even more money going forward, the business recently cut 15 percent of its workforce mostly from white collar employees. Featured Gallery Aston Martin DBX: Monterey 2015 View 16 Photos News Source: BloombergImage Credit: Copyright 2015 Drew Phillips / AOL Aston Martin Crossover Luxury Performance Sedan aston martin rapide aston martin lagonda aston martin dbx