09 Aston Martin Db9 Volante Convertible 2-door 6.0l Ken Lingenfelter Collection on 2040-cars

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Aston Martin stock price shaken and stirred by latest weak outlook

Aston Martin warned its 2019 profits would almost be cut in half due to weak European markets, sending its shares sharply lower as rivals Bentley and Rolls-Royce powered ahead. Tuesday's downgrade is the latest from the British luxury carmaker, whose shares have now plunged about three quarters in value since their 2018 listing. The 107-year-old firm, famed for being fictional agent James Bond's brand of choice, cut its forecast for wholesale volumes and profit margins in July, and reduced its volume forecast again in November. It has blamed weak UK and European markets and subdued demand for its Vantage model and said on Tuesday those conditions continued through December, leading to a 7% drop in wholesale volumes for 2019. "From a trading perspective, 2019 has been a very disappointing year," Chief Executive Officer Andy Palmer said, as the company's shares plunged as much as 16%. While Aston spent 2019 ploughing money into a new factory to build its first SUV, the highly lucrative market a number of carmakers have entered, rivals such as BMW-owned Rolls-Royce and Volkswagen-owned Bentley appear one step ahead. Bentley on Tuesday said its Bentayga SUV boosted the brand's performance in 2019 as it returned to profitability, while Rolls-Royce's Cullinan helped drive a 25% increase in sales to an all-time high of 5,152 vehicles. "Cullinan has proven to be an outstanding hot seller for the brand," Chief Executive Torsten Mueller-Oetvoes told Reuters. "We are sitting now on an order bank reaching even far into 2020." Aston hopes its first SUV, the DBX, will emulate this success and revive its fortunes next year. About 1,800 orders have been booked since its launch in November, the company said. "The order rate is materially better than any other car that we have ever launched before," Palmer told Reuters. For 2019, Aston expects adjusted earnings before interest, tax, depreciation and amortization (EBITDA) of 130-140 million pounds ($171 million to $184 million). The company reported 247.3 million pounds in core profit a year earlier, while analysts' average forecast was 196 million pounds for 2019, according to a company-compiled consensus. Aston said it was also in talks with investors for a potential equity investment and would draw down $100 million in bond notes. Its shares, which have lost nearly 3 billion pounds in market value since their listing, were down 11.1% to 464.8 pence at 1136 GMT.  

Weekly Recap: BMW rolls out ambitious plug-in hybrid electric plan

"We believe that for the United States, this is going to be very important." – Julian Arguelles Let there be no doubt, BMW is serious about electric vehicles. The German automaker said this week it will make plug-in hybrid versions of all of its core models, an aggressive move that demonstrates its commitment to electric propulsion systems. BMW did not specify which vehicles will get the plug-in systems or provide a timeline for when they will arrive. But the announcement is clearly more than blustering, and the company revealed a 3 Series plug-in prototype this week at an event in France. BMW said the 3 Series uses a version of its 2.0-liter turbocharged four-cylinder engine (240 horsepower, 300 pound feet of torque) with an electric motor sandwiched between the engine and transmission in place of the torque converter. It has an all-electric range of 22 miles. A plug-in X5 with the same powertrain was also displayed alongside the 3 Series, though the X5 has been on the auto-show circuit for more than a year, including a recent stop in Los Angeles. Those two vehicles use "eDrive," and BMW's plans represent the first widespread transfer of its technology from development of the i3 and i8 models to more mainstream products. BMW said it's developing electric powertrains so they can be deployed rapidly across its range, and they are flexible enough to be used with fuel cells in future products. Enticingly, BMW is also working on a "Power eDrive" system, which debuted in a 5 Series GT concept at the event in France. This setup has two electric motors powered by a 20-kilowatt-hour battery pack, and when teamed with a four-cylinder turbo, pump out about 670 hp. Reinforcing BMW's commitment, the company will add more than 200 jobs at its factory in Dingolfing, Germany, to support electric-vehicle development. The moves come as BMW and other automakers diversify their portfolios while fuel economy and emissions regulations are getting tighter around the world. The United States has set a 54.5-mpg CAFE requirement for the 2025 model year. BMW said the electric vehicles were developed with an eye toward the US market, its government policies and its wide-ranging commuting styles. "We believe that for the United States, this is going to be very important," spokesman Julian Arguelles said. Ben Scott, a senior analyst in London with automotive research firm IHS, said BMW's moves are expensive – but necessary – to keep pace with the market.

Aston Martin to race with solar power

Aston Martin may be more about luxury GTs than performance-obsessed supercars, but when it comes to racing, it's no holds barred. Aston Martin Racing has developed competition-spec versions of the Vantage and DB9, and even done a few LMP1 prototypes. But while some have been powered by V8s and others by V12s, the one underlying commonality is that they have all – in contrast with championship-winning diesel and hybrid prototypes – been powered exclusively by internal-combustion engines burning gasoline. That's what makes this announcement noteworthy. At Le Mans last weekend, the factory team announced a partnership with the Hanergy Global Solar Power & Applications Group that will see solar panels installed on the roof of the Vantage GTE it fields in the World Endurance Championship. Only the thin panels won't be powering the wheels, boosting the engine somehow or powering the batteries for a hybrid assist. They'll be used to power the air conditioning system. Which may seem inconsequential, but when you consider that the AC typically saps power from the engine – and it can sap quite a lot on a hot race day – that could amount to a serious performance advantage while keeping the drivers comfortable. While the system wasn't ready to use at Le Mans last weekend, temperatures at the French track don't get too high, so the air-con wouldn't likely be a big factor. The team (operated on Aston's behalf by Prodrive) does expect, however, to have the system up and running in time for next round at the Circuit of the Americas in Austin, Texas, where it can get insufferably hot. Aston and Hanergy also hope to install the system on the V12 Vantage GT3 and V8 Vantage GT4 it supplies to customer teams, and install solar panels on the roof of the new facility Prodrive is building in Banbury, UK. Aston Martin Racing Joins Hanergy in Solar-Powered Project Le Mans, 13 June 2014 - Banbury, 13 June 2014 - Aston Martin Racing has signed a partnership agreement with solar technologies experts Hanergy Global Solar Power & Applications Group, in a project exploring how the sun's energy can be used to improve race car performance at the pinnacle of sportscar racing, the FIA World Endurance Championship (WEC), starting with the 24 Hours of Le Mans this weekend (14-15 June).