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Aston Martin has slashed its investment plans by £300 million, cutting its five-year commitment from £2 billion to £1.7 billion as the luxury carmaker battles plummeting sales and mounting losses. The British company also reduced this year's planned investment to £350 million, down from a previous target of £375 million.
The financial strain is evident across key metrics. Revenue for the quarter ending September 30 dropped 27% to £285.2 million, while wholesale volumes fell 13% to 1,430 vehicles. UK sales took an even harder hit, slipping 32% during the same period. The company's operating loss more than doubled to £56.1 million.
CEO Points to Global Pressures
Chief executive Adrian Hallmark attributed the struggles to external forces beyond the company's control. "This year has been marked by significant macroeconomic headwinds, particularly the sustained impact of US tariffs and weak demand in China." "In response to these market dynamics, we have taken, and continue to take, proactive steps to strengthen our overall position."
Strategy Review Underway
Aston Martin is reviewing its future product plans to optimize costs while maintaining its luxury appeal. "Work is under way to review our future product cycle plan with the aim of optimising costs and capital investment whilst continuing to deliver innovative, class leading products to meet customer demands and regulatory requirements," Hallmark explained.
The company, famous for its association with James Bond films, expects performance to improve in the final quarter of the year. Major shareholder and executive chairman Lawrence Stroll maintains his confidence in the business despite the current challenges.
Note: This article was created with Artificial Intelligence (AI).
