Aston seals funds for DBX production, but issues long-term warning

Lawrence Stroll

Aston Martin reckons that the cash secures it 12 months to push forward (once business returns to normal) and, hopefully, time to reap the benefits of what's anticipated to be its fastest-selling model yet, the DBX.

Aston Martin's rebrand of the Racing Point Formula 1 team in 2021 is still on, despite warnings its parent vehicle company could run out of money within a year. It also noted that the increased impact of the coronavirus had added to the uncertainty since a revised prospectus was filed on March 13.

Stroll will take over as executive chairman of the firm from 20 April, while Aston will also join the billionaire's Racing Point F1 team, which will change its name to Aston Martin F1 for the 2021 season.

It is however less than the £195m ($239m) he previously agreed to pay for a 16.7 per cent stake prior to the outbreak of the Covid-19 virus, which saw Aston Martin Lagonda's share price plummet and led to the deal being renegotiated. This is most clearly demonstrated by our investment, which underpins the financial security of the company.

"I, and my co-investors in the consortium, continue to believe passionately in the future of Aston Martin Lagonda. This gives the necessary stability to reset the business for its long-term future", Stroll said in a statement. In addition to confirming the investment into Aston Martin, Stroll has re-committed to entering Aston Martin as a Formula 1 works team next season. The British carmaker has temporarily suspended production at its two factories in the United Kingdom until the end of April. After saving the F1 team from Force India over a year ago, he (along with several other investors) is now the one who keeps Aston Martin afloat with an investment of over 300 million euros.

The company is making use of all government aid and has rephased its operating costs to change spending patterns, such as on marketing, to stabilise its situation.

"The story is not true", said Wolff.

The four-week suspension at its plant in Gaydon, Warwickshire, is to be reviewed, with Aston Martin saying it would look to resume operations "as soon as it is reasonable to do so".

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