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Aston Martin to cut 15 percent of workforce

Aston Martin has announced it will slash nearly 300 jobs, or about 15 percent of its total workforce, as part of a cost-cutting bid. The changes aren't going to come on the factory floor, though. Instead, according to the Unite trade union, the majority of firings will involve white collar employees – administrators, managers, and the like – at the company's headquarters in Gaydon, England, Bloomberg reports. In an emailed statement to the business outlet, Aston Martin said eligible employees will be offered early retirement options. While Aston said there'd only be 295 employees released, Unite put the number at no more than 314. "Collective consultation with employee representatives, including Unite, has begun and the company is working with them to minimize the risk of compulsory redundancies," the union told Bloomberg. Aston Martin added that this move will have no impact on the company's production figures, although it's unclear what it could mean for future vehicles, like the production DBX and upcoming DB11. Related Video:

Aston Martin DBX SUV spied up close towing, and we get interior shots

An Aston Martin SUV called the DBX is going to be revealed in the last quarter of 2019, and here's your newest batch of spy photos showing it out testing. There isn't much new to see on the outside, but our spy photographer managed to capture more detailed photos of the interior. Before you get too excited, know the interior is pretty much entirely unfinished. This particular DBX prototype seems to be a fairly early build, as everything on the inside looks cobbled together. If you peer through the rear windows you'll see what looks like some sort of rollcage and massive jugs meant to simulate the weight of passengers. Also, like before, there's a smattering of Mercedes parts in there. We see the Mercedes infotainment display, center console and center stack design, plus Mercedes seat controls. Curiously, those seat controls are on the tunnel separating the driver and passenger. Aston could get away with doing that, but with all the space an SUV offers, it seems somewhat unnecessary to package it thusly. We'll just assume nothing is final at this point, due to the state of confusion currently on display in the Aston's interior. We do have something interesting to look at on the exterior of the DBX, though. It's hauling something, and that something happens to be a Taylor dynamometer, according to the logo on the side. This kind of dyno is used to apply a measured load to the vehicle, in addition to simulating driving up and down slopes. This SUV is rumored to have AMG's 4.0-liter twin-turbo V8 under the hood, so it could have some heady towing capability. Aston seems intent on making this SUV do SUV things, so a solid tow rating could be in the cards. The wait isn't long at this point for the DBX, but Aston hasn't uncovered anything more than it did last year. With the actual announcement nearing, we hope to see more of the large Aston Martin bruiser soon.

Bond, junk bond? Aston Martin financial ratings go south as it awaits DBX

Ratings agencies Standard & Poor's and Moody's have taken a dim view of Aston Martin Lagonda. S&P cut its credit rating on the storied carmaker deeper into junk territory this week, and Moody's revised its credit outlook to "negative" after the company raised $150 million in debt from a bond issue at 12% interest, with the option to raise another $100 million at 15%. The Standard & Poor's rating was trimmed by one notch to 'CCC+', which reflects substantial risks and takes it close to default territory after a faster-than-expected cash burn this year. The outlook is negative.  The negative outlook reflects ongoing pressure on profits, a high cash burn, and very high leverage in the face of heightened risks linked to a potential no-deal Brexit and new tariffs on car imports threatened by the United States. The potential salvation for the company is its new DBX luxury SUV, the success of which is critical to its ambitious growth strategy and ongoing creditworthiness, S&P said. But Moody's noted that it's burning cash at a high rate as it nears the launch of the DBX. The British carmaker, known as James Bond's favorite marque, has been hit by falling demand in Europe, the Middle East and Africa. It slumped to a first-half loss in July. Chief Executive Andy Palmer said concerns around Brexit and U.S.-China trade relations were skewing the outlook to the downside, so it was prudent to address investor concerns about its balance sheet. "Taking this debt on — short-term debt — is we think the correct tool to completely remove that thesis that we don't have sufficient liquidity," he told Reuters. "In every substantial and material way, this ensures that we can get through to DBX in spite of what all of those global uncertainties might throw at us." The main tranche comprises notes with an interest rate of 12% due in 2022, while the additional notes could be issued under the same terms if permitted, or could be issued as unsecured notes with an interest rate of 15%, Aston Martin said. Shares of stock in the company, which have had a precipitous fall since they listed in London in October 2018 at 19 pounds, were trading down 5% at 545 pence in early deals. Broker AJ Bell said Aston Martin was known for its high end prices and that situation now also applied to its debt. "These rates are very high and are a major red flag that investors consider the car company to be a high risk entity," it said.