2007 - Aston Martin Db9 on 2040-cars

Auto blog

Aston Martin shares plunge to new low following half-year loss

LONDON — Shares in Aston Martin plunged 17% to a post-flotation low on Wednesday after the luxury British carmaker slumped to a half-year loss, the latest automotive firm to be hit by falling demand in Europe. Aston Martin, best known as James Bond's favorite marque, has been undergoing a turnaround plan since Chief Executive Andy Palmer took over in 2014, designed to renew and boost its model line-up and move into new segments. The plan led to an autumn 2018 stock market flotation. But its shares have since fallen by around three quarters from their 19 pounds float price to below 5 pounds, hit most recently by the group's weak performance in Europe, the Middle East and Africa, where half-year demand fell by nearly a fifth. The group posted a pretax loss of 78.8 million pounds in the six months through June from a 20.8 million pound profit in the first half of 2018. Its shares were down 17% at 4.71 pounds by 0748 GMT. "We are disappointed that our projections for wholesales have fallen short or our original targets, impacted by weakness in two of our key markets as well as continued macro-economic uncertainty," Palmer said. Overall wholesale demand grew by 6% in the first six months as the group posted strong increases in the Americas and Asia, but a decline in Britain and the rest of the continent prompted the carmaker to cut its full-year forecast. Aston has also been hit by expansion costs as it builds a new factory in Wales to make its first sport utility vehicle, and a lower average selling price. The company said that if it requires some additional financing it would pursue the funds from sources such as the debt markets. The global car industry has been hit by weakening demand in China and a drop in demand for diesel vehicles in Europe, as well as the cost of electrification. Nissan reported plunging profits last week and said it would undertake its biggest restructuring plan in a decade, axing nearly a tenth of its workforce. But 106-year old Aston also faces the risk of a disorderly Brexit disrupting its wholly British production, as delays at ports due to new bureaucracy could slow down the movement of vehicles and components. "We do not want a no-deal Brexit because of the disruption that causes to issues at the border," said Palmer.

Aston Martin is building eight Valkyrie prototypes, here's the first trio

Aston Martin and Red Bull Racing are still developing the high-performance Valkyrie supercar, and recently, Formula One drivers Max Verstappen and Alex Albon were given the opportunity to test out the prototypes. Verstappen and Albon were given the reins to verification prototype 1 (VP-1), while never-before-seen VP-2 and VP-3 lapped Silverstone at the hands of Aston Martin test driver Chris Goodwin and Aston Martin Racing World Endurance Championship drivers Darren Turner and Alex Lynn.  After publicly unveiling VP-1 at the 2019 British Grand Prix, Aston Martin recently brought two new verification prototypes into the fold. Aston Martin has been using the Silverstone circuit near Northampton, England, for its testing process, and it seems that will continue for the rest of the verification prototypes. In total, Aston Martin will build eight.   Aston Martin collects data and observations not only from its own test drivers and engineers but from its professional drivers too. For Albon, it was his first time seeing the car in person. In a press release, Albon offered some details about how the car will position itself to its customers.  "Obviously there’s still some development to do, but already it feels very good, especially the balance between the corners," he said. "ItÂ’s light; it feels sharp. Sure, compared to an F1 car, youÂ’re missing the outright downforce, but you still feel the Gs in the corners and it definitely reacts closer to an F1 car than a normal road car."  Aston Martin plans to have the Valkyrie tuned and ready for customers in the coming months, but don't expect deliveries to begin until the second half of the year. In related news, Road & Track cites a Racer report that says Aston Martin will pull back from its intentions to race the Valkyrie in the 2020–2021 World Endurance Championship and Le Mans. The report, which says a formal announcement is coming February 19, comes shortly after news that Aston Martin received an investment from Canadian billionaire Lawrence Stroll. 

Question of the Day: What's the greatest British car ever?

The British automotive industry has produced everything from high-production econo-commuters to staggeringly luxurious oligarch-wagons, along the way winning plenty of races and building plenty of beautiful machines. The original Mini led directly to the past half-century of transverse-engine, front-wheel-drive cars built everywhere, the MGB put the sporty little convertible into everyone's reach, and the Morris Oxford became the most beloved motor vehicle in India. So many to choose from, but we want you to pick one. What will it be? Related Video: