Aston Martin posts $41.5m loss amid falling demand

[Monster]

Aston Martin posts $41.5m loss amid falling demand -

Aston Martin has posted a £24.6 million ($41.5 million) loss for 2012 on the back of diminishing demand for its luxury sports cars.
The Telegraph in the UK reports demand for the Gaydon-based manufacturer’s high-end V8- and V12-powered models fell nine per cent last year, with global volume down to 67,500 vehicles.
Last year’s sales figure was almost 40 per cent below Aston Martin’s 110,000-unit peak in 2007. Aston’s Australian sales fell seven per cent last year to 94 units, down from 160 in 2007.



The iconic sports car maker has now lost £46.1 million ($77.8 million) over the past two years, following losses of £21.2 million ($35.8 million) in 2011.
In accounts filed with Companies House, Aston blames the “market segment [w
hich] has been severely affected by recession” and highlighted “weakness in European markets and vehicle launches occurring in the fourth quarter”.
Aston Martin launched the updated DB9, Rapide S and Vanquish between October and January – all three being costly one-time expenses – to kick-start its 100th anniversary celebrations in 2013.
Despite the update, the DB9 is now one of the oldest sports cars on the market, having debuted in 2004. The entry-level V8 Vantage – launched in 2005 – is also growing long in the tooth.
Aston Martin’s technical partnership with Mercedes-Benz’s high-performance division AMG should help its financial situation by reducing its research and development costs. Under the deal, AMG will supply Aston with V8 engines, electric components and electronic architectures.
The news comes less than two weeks after Aston Martin confirmed it had ended production of the Cygnet, following dismal sales of the Toyota-based city car.

Aston Martin posts $41.5m loss amid falling demand | CarAdvice

 

[Merc1]

The recession isn't the problem, their outdated lineup is. The only reason to buy an Aston is the look at the sound. Ferrari and Porsche run them off the road in driving/performance and aren't that far behind in looks. The new engines and hardware from AMG can't come soon enough. The first project should be a facelift for the Vantage model and updated version of the 6.2L AMG V8. The Vantage and that engine are made for each other. The V12 needs a complete overhaul, like NOW. I just can't see turbo engines in Astons, but I guess that is the future. Aston's desperately need new electrical systems, nav etc, not deal breakers but they should be top shelf considering the price.

WARNING *** Last thing Mercedes needs now is a another money losing partner/venture ***



M

 

[Monster]

The recession isn't the problem, their outdated lineup is. The only reason to buy an Aston is the look at the sound. Ferrari and Porsche run them off the road in driving/performance and aren't that far behind in looks. The new engines and hardware from AMG can't come soon enough. The first project should be a facelift for the Vantage model and updated version of the 6.2L AMG V8. The Vantage and that engine are made for each other. The V12 needs a complete overhaul, like NOW. I just can't see turbo engines in Astons, but I guess that is the future. Aston's desperately need new electrical systems, nav etc, not deal breakers but they should be top shelf considering the price.

WARNING *** Last thing Mercedes needs now is a another money losing partner/venture ***
M

Agree, all those people out there who have ever wanted an Aston have probably bough them, sold them and bought newer ones again within this 10 year period. There are also plenty of used Aston for potential customers to buy because they aren't that much different from the current lineup. There are no incentives for new customers to purchase a brand new Aston.

 

[Sovereign]

The recession isn't the problem, their outdated lineup is. The only reason to buy an Aston is the look at the sound. Ferrari and Porsche run them off the road in driving/performance and aren't that far behind in looks. The new engines and hardware from AMG can't come soon enough. The first project should be a facelift for the Vantage model and updated version of the 6.2L AMG V8. The Vantage and that engine are made for each other. The V12 needs a complete overhaul, like NOW. I just can't see turbo engines in Astons, but I guess that is the future. Aston's desperately need new electrical systems, nav etc, not deal breakers but they should be top shelf considering the price.

WARNING *** Last thing Mercedes needs now is a another money losing partner/venture ***



M

Correct analysis. The only difference of opinion I have is about the looks. I have seen several recent Aston Martin cars and I don't find them as attractive as many people and especially the British press make them out to be imo. These cars are good looking but not to the extent the press is touting about. My favorite 2 door Aston is the Volante, Vantage from the 1980s. It had brutal looks.

Besides my subjective analysis of its design, I feel another reason could be that all Aston Martin current models are copy of each other and are based on the original DB7 that came out in 1994 I guess. It is essentially a one model company for the past two decades with some variations in light clusters and engine output.

Even Porsche with the legendary 911 cannot rely on one model. the 911 is unique not only in appearance but because of the drivetrain and hence the driving experience. If Porsche with its much loved 911 need other models to be profitable then how would Aston survive with only DB7 based models which do not offer the unique experience of 911.

 

[Mr. Mercedes]

The recession isn't the problem, their outdated lineup is. The only reason to buy an Aston is the look at the sound. Ferrari and Porsche run them off the road in driving/performance and aren't that far behind in looks. The new engines and hardware from AMG can't come soon enough. The first project should be a facelift for the Vantage model and updated version of the 6.2L AMG V8. The Vantage and that engine are made for each other. The V12 needs a complete overhaul, like NOW. I just can't see turbo engines in Astons, but I guess that is the future. Aston's desperately need new electrical systems, nav etc, not deal breakers but they should be top shelf considering the price.

WARNING *** Last thing Mercedes needs now is a another money losing partner/venture ***



M

With the current arrangement, a 5% stake in Aston and agreement to sell parts, I doubt a failing Aston will be a drag on Mercedes. They may just not amortise as much of the costs of their R&D that they were hoping to by selling Aston stuff.