Very few brands have ever been as iconic as Aston Martin – a mainstay in popular culture thanks in part to its inclusion in MGM’s James Bond franchise. Yet, it’s no secret that the British vehicle manufacturer, established in 1913, has had to weather its fair share of financial problems.
As of May 2020, the company had fallen to a £120 million loss in its first-quarter because of the Covid-19 pandemic. As a result, guidance was withdrawn for the year following the closure of dealerships and factories. Problems were further exacerbated as revenues slid by 60% to just £78.6 million.
Light at the End of the Tunnel
The good news is that despite these setbacks, Aston Martin is set to emerge in a strong position thanks to various changes behind the scenes. First, the company has reduced the stock at its forecourts to rebalance supply and demand and reduce excess stock sitting at dealerships.
Additionally, production of a planned series of electric vehicles has been pushed back and focus shifted to Formula 1 and developing the next generation of supercars. Plus, with the re-opening of the St Athan plant in Wales, full production of the DBX sport utility vehicle is now back on course.
This is vital for Aston Martin as it takes them into the lucrative luxury SUV market, ensuring their near-term survival. With orders to take them well into 2021, any losses from cancellations because of the pandemic have effectively been offset.
Ultimately, the long-term goal of Aston Martin is to move towards a model similar to that of Ferrari. This will see them produce cars ordered by customers, eliminating the issue of excess stock sitting at dealerships. Such a move will see the prestigious brand return to being the force to be reckoned with it once was.
The Strength of a Brand
As a brand, Aston Martin has always been a symbol of luxury and speed. Renowned for their gorgeous design and excellent performance, these are cars engineered with prestige in mind, often regarded as true works of art. With a long and proud history of producing vehicles for motorsports and consumers, Aston Martin has become a firm choice for vehicles that exude wealth, status, and power
While the recent financial problems have certainly presented unique challenges, Aston Martin is a brand with the pedigree necessary to overcome such obstacles and emerge stronger than ever.