Aston Martin cuts delivery outlook as supply snarls bite

Aston has been struggling with a turnaround plan to raise output and lower debt.

Aston Martin will deliver fewer vehicles than expected this year as the luxury-car maker struggles with persistent supply-chain problems.

Aston now expects to deliver as few as 6,200 cars, down from an earlier projection of more than 6,600 units after parts shortages prevented some 400 autos from being shipped in the third quarter, the company said Wednesday. It also reported a worse-than-expected operating loss in the period.

“Although these headwinds, which are already improving in Q4, have disrupted our near-term financial performance and modestly impacted our full year guidance, the medium and long-term outlook is robust,” Aston’s executive chairman Lawrence Stroll said in a statement.

Aston has been struggling with a turnaround plan to raise output and lower debt. In September, it launched a €760m rights issue with Saudi Arabia’s Public Investment Fund becoming an investor. 

Aston also attracted China’s Zhejiang Geely Holding Group Co. which acquired a 7.6% stake in the carmaker. Geely, which owns Volvo Car AB and controls British roadster maker Lotus, is considering boosting its stake in Aston over time to foster collaboration, Bloomberg reported last month.

Aston lowered its net debt to €969m, down from €1bn at the end of last year and said it’s still seeing strong demand for its luxury cars.

Once touted as a peer to Ferrari, Aston has suffered a number of setbacks since its 2018 initial public offering. 

With dwindling cash and rising debt, the manufacturer sought a rescue in 2020 from Canadian billionaire Stroll, who injected cash and forged closer ties with Germany’s Mercedes-Benz AG.

- Bloomberg