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Aston Martin posts deep quarterly loss as coronavirus pandemic dents sales

LONDON — Aston Martin posted a deep first-quarter loss after sales dropped by nearly a third due to the impact of the coronavirus crisis, though the luxury car maker said production of a crucial sport utility vehicle was on track. Aston Martin, popular for being James Bond's carmaker of choice, suffered a torrid time since it floated in October 2018, seeing its share price tumble from 19 pounds to around 40 pence. Dire conditions forced the company to bring in Canadian billionaire Lawrence Stroll to invest in the firm, while Aston said it will continue to review future funding and refinancing options to boost liquidity. The pandemic hit demand and forced factories around the world to suspend production. However, Aston resumed operations as its Welsh plant last week but not at its other site located in southern England as yet. "We were obviously fairly significantly hit by COVID-19, starting with China in January but more clearly in what we saw as it came across towards Europe and the United States," Chief Executive Andy Palmer told Reuters. The company posted a pre-tax loss of 119 million pounds ($145 million), compared with a loss of 17 million pounds ($21 million) last year, and said it could no longer provide an annual outlook. Its full-year loss in 2019 came in at 104 million pounds. Shares were down 5% at 36 pence, as of 07:35 GMT on Wednesday. The carmaker said production of its DBX SUV, which is key to boost volumes and appeal to new buyers including more women, was on track and had a strong order book. The luxury brand, which has seen core retail sales slump by an annual 31%, has furloughed staff, introduced additional safety measures and cut the pay of its senior management as part of measures to handle the crisis caused by the pandemic. Stroll, who hopes to pursue a turnaround partly by sharing Formula One technology with the firm's range of road cars, leads a consortium that took a 25% stake in the company earlier this year as part of a capital raise worth 536 million pounds. "Given the ongoing uncertainties, as is prudent, the company continues to review all future funding and refinancing options to increase liquidity," the company said on Wednesday.   (Reporting by Costas Pitas; Editing by James Davey and Sherry Jacob-Phillips)

Is your new-car warranty good at the race track?

We've all heard the horror stories. Your buddy knows a girl that was dating a guy whose best friend's brother once broke his brand-new, recently purchased performance car while making runs at a drag strip or laps at a track day, and the manufacturer wouldn't cover the repair under warranty. True story? Urban legend? Complete crap? Yes, no, maybe. One thing's for sure: Automotive warranties have always come with caveats. In 1908, an ad in the Trenton Evening Times clearly stated: "All Ford Cars Guaranteed for One Year." Although it changed over time, by 1925 the Ford New Car Guarantee only covered 90 days on material and 30 days on labor, and it clearly stated that that there was "No guarantee whatever on Fan Belts, Glass, Bulbs, Wiring, Transmission, Bands, Hose Connections, Commutator Shells, Rollers, Spark Plugs or Gaskets." Whether or not Ol' Henry would pay to fix your Model T if you broke it shaving a tenth off your lap time at the local board track seems to be lost to history. We're guessing no. But what about today? Do new-car warranties in 2017 cover cars when they are driven on race tracks? We researched the warranties of 14 auto brands to find out, and the answer is yes, no, maybe, depending on the brand, in some cases the model, and whether or not your car is modified from stock. Acura has been out of the high-performance car game for a number of years, but jumps back into the party in 2017 with its hybrid-powered $173,000 NSX supercar. And Acura's warranty, as well as Honda's, clearly states that it does not cover "the use of the vehicle in competition or racing events." View 33 Photos So we asked Sage Marie, Senior Manager of Public Relations for Honda and Acura. "If the car is stock, the warranty covers it on a track just as it does on the street. No question," he told us. "However, if the car is modified, say with slick tires or other components that would put higher stresses on the vehicle's parts and systems, then we would have to investigate the circumstances further." Marie went on to say the same would be true for any Acura model or Honda vehicle, including the new 2017 Honda Civic Si. This became a common theme. Chevrolet actually started this practice with the fifth-generation Camaro on the high-performance ZL1 and Z/28 models.

Aston Martin plots more specific models for China, Middle East

Aston Martin is a thoroughly British automaker. Given its independence from any foreign automaker and its production that takes place entirely in the UK – particularly since Rapide assembly was moved back to Gaydon and the Toyota-based iQ was discontinued – you might argue that it's the most British automaker of them all. But like any other, it thrives on exports, and that only stands to increase with its latest announcement. With support from the British government, Aston Martin has revealed that it plans to develop new models specifically for export outside of the UK and continental Europe – especially for developing but wealthy markets in China and the Middle East. It wouldn't be the first time Aston would launch a new model targeted at a specific market, after all. When the company relaunched the Lagonda marque with the new Taraf luxury sedan late last year, it initially planned to make it available only in the Middle East. And by Middle East, we don't mean war-torn Yemen or Syria – we mean the oil-rich emirates of the Persian Gulf, like Bahrain, Qatar, Dubai and Abu Dhabi. Popular demand later prompted Aston to switch tracks, however, expanding availability to Europe and other markets. At this point, Aston isn't saying just what it has in mind for these lucrative markets, but the possibilities seem limited only by what local buyers would be interested in ponying up for. We could easily see the company offering a long-wheelbase Taraf limousine for China, a partial convertible sedan (like the Maybach Landaulet) for the Emirates or that long-rumored crossover that would be sure to attract buyers from both markets. ASTON MARTIN SET TO EXPAND MODEL RANGE FOR EXPORT MARKETS UK Government confirms support for new projects 29 March 2015, Gaydon: Aston Martin today confirmed it will widen its product offering for markets outside of Europe. Based on a conditional offer of an exceptional regional growth fund from the UK Government, Aston Martin will commence work this year on new models intended to broaden its customer reach in export markets such as China and the Middle East. The UK Government has committed support of up to the value of GBP6.9 million, conditional on investments in new products from Aston Martin. Commenting on this news, Aston Martin CEO, Dr Andy Palmer said: "Expanding our product range to enable a greater reach into export markets is an essential part of our Second Century business plan.