Aston Martin Burns Through 1 Million Pounds Daily as Production Targets Fall Short

British luxury automaker Aston Martin Lagonda continues to face significant operational challenges, with the company reporting persistent losses and declining performance across key metrics. The iconic manufacturer is currently consuming cash at an alarming rate of over £1 million per day, while its net debt position has deteriorated substantially.

The company’s third-quarter results paint a concerning picture, with all 2024 targets now deemed unrealistic. Under the leadership of newly appointed CEO Adrian Hallmark, the fifth chief executive in as many years, Aston Martin has been forced to revise its annual production targets downward by 14 per cent to 6,000 vehicles.

The luxury carmaker’s financial position remains precarious, with nine-month revenues dropping 4 per cent to £994 million. Despite delivering 1,641 vehicles in the third quarter, representing a 14 per cent increase from the previous year, the company posted a £12 million loss for the period. Most worryingly, net debt has surged to £1.21 billion, marking a nearly 50 per cent increase from £814 million a year ago.

The Chinese market, crucial for luxury automotive sales, has proven particularly challenging. Sales of the DBX, previously Aston Martin’s bestselling model, have plummeted, with overall volumes to China falling by 54 per cent. The model now represents just 30 per cent of total sales, down from over half a year ago.

Despite these headwinds, Hallmark maintains an optimistic outlook, citing the company’s diverse product portfolio as a key strength. However, with cash burn rates exceeding £1.4 million daily year-to-date and ongoing supply chain disruptions, the road to recovery appears increasingly challenging for the British luxury marque.

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Aston Martinautomotive industryBritish manufacturingFinancial Performanceluxury automotiveluxury brands