Luke Wilkinson 2019-07-24 14:40
Aston Martin’s shares have lost more than a fifth of their value, following a huge slump in sales across Europe
Aston Martin’s share price has fallen by more than 20 per cent after it announced a huge drop in sales.
At the time of writing, Aston Martin shares were down to around £8 – that’s compared to the £19 level when the brand initially sold 25 per cent of its stock on the London Stock Exchange in October 2018. It means Aston Martin’s market value has more than halved to £1.8 billion.
Aston Martin sales in the UK have plunged by 22 perc ent during the second quarter of 2019, while sales in the rest of Europe, the Middle East and Africa have seen a slump of 28 per cent. Overall, Aston Martin expects sales figures for the 2019 financial year to be between 6,300 and 6,500 vehicles.
Dr. Andy Palmer, President of Aston Martin Lagonda, said: “We are disappointed that sales have fallen short of our original expectations, but we are committed to maintaining quality of sales and protecting our brand position first and foremost. We are today taking decisive action to manage inventory and the Aston Martin Lagonda brands for the long-term.”
Despite the drop in sales for UK and Europe, Aston Martin sales are on the increase in the Americas and throughout the Asia Pacific region, with the former climbing by 83 per cent and the latter by 17 per cent.
Aston Martin anticipates the forthcoming DBX SUV will be the company’s saving grace, becoming the most popular Aston model and doubling production in the process. It will play on the current market trend for premium performance SUVs, currently dominated by the Bentley Bentayga and Lamborghini Urus, with a starting price of around £140,000.
Now read all the latest news on the Aston Martin DBX SUV. Let us know your thoughts in the comments section below…