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Aston Martin skids in stock market debut

LONDON — Shares in luxury automaker Aston Martin fell as much as 6.5 percent on their market debut in London on Wednesday as investors and analysts raised concerns over Aston's ability to deliver an ambitious rollout of new models. The company, which last year made its first profit since 2010 and has gone bankrupt seven times, had priced its shares at 19 pounds each, giving it a market capitalization of 4.33 billion pounds ($5.63 billion). The shares fell to as low as 17.75 pounds. Aston Martin has plans to launch a new model every year from 2016 to 2022. "(It) has very aggressive growth plans. The execution of that growth needs to be flawless — nothing eats cash more than a car company when the cycle turns. There is concern that it's more cyclical than the commentary has been," said James Congdon, managing director of cashflow returns specialist Quest. "The banks have done a good job for their client — but there's no bounce." Aston is going all-in Aston Martin — full name Aston Martin Lagonda Global Holdings Plc — expects to produce around 7,100 to 7,300 cars in 2019, and 9,600 to 9,800 cars in 2020. It aims to increase production to 14,000 cars in the medium term, helped by new models and improving its manufacturing process. The company is investing all of its cashflow to try to achieve this, leaving nothing for dividends or paying down debt. "In terms of execution risk — this is what I've done for all of my career. I'm an engineer: we mitigate risk," Chief Executive Andy Palmer, who has led a turnaround plan at the company since 2014, told Reuters. Palmer played down risks to the business from Britain leaving the European Union, even as other car manufacturers step up warnings over a disorderly Brexit. He said Aston Martin was "relatively well insulated" from the effects of Brexit because Europe is not its biggest market and it may actually benefit from exporting with a cheaper pound. However, 60 percent of its parts are imported from the EU and will be hit by tariffs if there is no trade deal. "Obviously we'd all prefer no tariffs to be frank, no doubt, but the industry has to learn to adapt, and it always has adapted to changes," Palmer said. Valuation In 2017, Aston Martin had adjusted earnings before tax interest, depreciation and amortization (EBITDA) of 206.5 million pounds, up from 100.9 million pounds in 2016.

Lotus and Aston Martin to hook up?

This has been a tumultuous year for Lotus - to say the least - from the company being sold off back in January to its CEO Dany Bahar being fired in June to its questionable financial status and rumors of the British automaker being sold off to another automaker. First, we heard that Volkswagen was interested in acquiring Lotus and parent company Proton, a rumor that was later dismissed. Now Automobile is reporting that fellow Brit Aston Martin could be in the market to work with or possibly even merge with Lotus.
While this is pure speculation at this point, such a venture could prove to be beneficial for both independent companies. That's because with Lotus focused on lightweight, relatively affordable sports cars and Aston Martin producing high-end performance cars, there is virtually no product overlap between the companies. The article suggests that a person or company wanting to merge these two automakers would have to raise between $1.1 billion and $1.6 billion in order to make a go of it, however.
We're not sure what to think of this latest rumor, but anything that can help get the struggling brand back to health at least has our interest.

Aston Martin Vantage GT8 spied looking all fast on the 'Ring

Aston Martin keeps rolling out new versions of its long-serving Vantage, and we keep not complaining. This latest piece, spotted on the Nurburgring, looks particularly mean in matte black with a nice big wing on the back. We believe it to be the anticipated Vantage GT8, which should be the ultimate version of the V8 Vantage. The GT8 will follow in the footsteps of the Vantage GT12; its smaller engine should pack less of a punch, but the car will be lighter in the nose a V12 Vantage, which should help handling balance. Expect the 4.7-liter V8 to be retuned to produce more power than it has in any other Vantage: currently, the top V8 Vantage tops out at 430 horsepower, and we wouldn't be surprised to see the GT8 boast more like 450. That would still leave plenty of breathing room to the V12 models that start at 565. The aero package looks similar to the GT12's aggressive setup but incorporates several changes, including fewer cooling ducts and a reshaped front splitter, rear wing, and diffuser. Expect the interior to come stripped out like the GT12's. This top V8 Vatage ought to make a fine swan song for the eleven-year-old model line before its AMG-powered, turbocharged successor arrives. But don't expect to see too many of them – sources anticipate just 150 examples to be built, which is more than the 100 units of the GT12, but will still make this a rare bird indeed. Related Video: