Aston Martin is expected to save £25 million as it suffers from supply chain disruption, inefficiency and weak China’s demand.
advertisementAston Martin is trimming staff figures after recording another annual loss, the British luxury car maker announced on Wednesday.
A total of 170 employees have been hired, accounting for 5% of the world’s labor force.
Aston Martin’s operating loss reached £99.5 million (€119.9 million) in 2024, a slight improvement from the previous year’s total of £111.2 million (€134 million).
For the last three months of 2024, the operating loss was £33.3 million (EUR 40.1 million), slightly better than the total £34.1 million (EUR 41.1 million) seen in the previous year.
Meanwhile, Aston’s Martin’s full-year pre-tax loss fell 21% to £289.1 million (EUR 348.4 million) compared to 2023.
“We are beginning the process of coordinating our organization and ensuring that our businesses are properly resourced in future plans,” Aston Martin said in a revenue statement Wednesday.
“We are expected to save £25 million in annual operating expenses as it is directly linked to this difficult but necessary action.”
About 50% of that total will come to fruition this year, the company added.
Making Aston Martin more efficient is one of the driving purposes of owner Lawrence Stroll, a billionaire businessman who acquired the company in 2020.
“Instill better rigor and discipline in planning and implementing product launch cycles, promoting collaboration with supply partners throughout the process, promoting efficiency, and always putting our customers at the heart of what we have to do That’s what it is,” Aston Martin said in a revenue statement.
The company added that it needs to be more realistic about product launch timelines.
The company focuses on the release of the Valhalla Hybrid Model in 2025, with delivery beginning later that year.
The first fully electric model of Aston Martin is planned “in the second half of the decade.” This is a launch that was already postponed to last year 2026.
Delivery Disorder
Aston Martin saw an annual jump of 8% in wholesale volume in the final quarter of 2024, but the total fell for the full year.
The company delivered 6,030 vehicles in 2024, down from 6,620 in 2023.
advertisement“Supply chain disruption” and “China’s weaker macroeconomic environment” will be held responsible, the automaker said.
Meanwhile, year-end sales were attributed to its new core product range.
Looking at this year, Aston Martin aims to see green adjusted EBIT (pre-interest and tax revenue) along with positive free cash flow for the second half of 2025.
One obstacle to this is the potential trade tariffs introduced by US President Donald Trump, which could affect British automobile exports.
advertisement“After launching a period of intense product launches coupled with corporate challenges across the industry, our focus is now shifting to operational implementation and financial sustainability delivery,” Aston said. Martin CEO Adrian Hallmark said Wednesday.
He added: “I see great potential in Aston Martin. Our goal is to move from a high-performance business that is suitable to navigate future opportunities and uncertainties. ”
