Another global luxury car manufacturer is cutting jobs after struggled to maintain the pace as the industry moves to electric vehicles (EVs). Some are beginning to be left behind as EVs are gaining market share in most major regions.
Aston Martin cuts work and delays first EV (again)
Aston Martin announced plans to cut its workforce by 5% on Wednesday after a 400% increase in fourth quarter losses (pre-tax) surged. The company expects the move to save around £25 million ($31,700).
The British luxury brand missed its full-year estimate after wholesale volume slipped 9% last year. Balloon debt also reached £1.16 billion ($1.47 billion), an increase of 43% since 2023.
CEO Adrian Hallmark has denounced “industry-wide supply chain disruption” and “China’s macroeconomic weakness” for performance and employment cuts.
Aston Martin wholesalers plummeted 49% in China compared to 2023 last year. Like most global OEMs, Aston Martin is squeezed out of the market after struggling to keep up with EV leaders like BYD, Tesla, Xpeng and Nio.
Despite being late early, Aston Martin is slowing its first fully electric vehicle (EV). The luxury car manufacturer pushed back the long-awaited EVs until 2026 last year. It was scheduled to start later this year. Now it is planned for the “late half of the decade”.
In 2023, British Luxury Brand joined a strategic technology partnership with Lucid Motors, using Advanced EV Powertrain technology for future electric sports cars.
Aston Martin is the latest luxury automaker to announce job cuts as it struggles to keep up with global EV racing. Earlier this month, Porsche announced plans to cut 1,900 jobs in Germany by 2029. This is the low profit and sales in one of the most important markets, China.
Other global OEMs, including Ford (Europe), Nissan, Stellantis and Volkswagen, have all announced plans to cut jobs with increased competition and losses in China.
In the meantime, Aston Martin will focus on its first mid-engine plug-in hybrid vehicle (PHEV) to be launched later this year. Valhalla is already sold out for its first production, limited to just 999 units.
Electrek Take
Like most global automakers, Aston Martin is struggling to keep up with China’s EV surges. Luxury automakers like Aston Martin and Porsche have been hit hard many times with more advanced, high-tech EVs coming out of China at much lower prices.
BYD is best known for its cheap EVs like the $10,000 Segal, but it’s quickly expanding with the availability of luxury sedans, SUVs and electric sports cars on the market.
And it’s not just BYD. Xpeng, Nio, Li Auto and others all have market share in the Chinese luxury market.
Currently, China is overflowing with domestic models, and these companies are expanding to new overseas markets, including Europe, Southeast Asia, Central and South America, to drive growth.
Can global automakers keep up? Or will China continue to dominate the market in the coming years as the industry moves to EVs? Please drop a comment below and let us know what you think.
FTC: We use income-earning car affiliate links. more.
