Finally, deliveries of Aston Martin’s first SUV, the DBX, have started, but all is not going well for Aston Martin.
The British manufacturer reported a larger loss in the first half of the year as the situation was not helped by the coronavirus pandemic which forced the company to halt production and reduce stocks. The losses would be $ 208.45 million and have a negative free cash flow of $ 485 million. Meanwhile, the cash balance was $ 469 million in June, while there was $ 562 million in free cash.
While it is too early to determine whether Aston Martin is recovering from the pandemic recession, finally having DBX on the market should help cash flow and in China the company is starting to show signs of recovery. China being of course one of the key markets for the company and in particular DBX.
In terms of reducing inventory at its dealerships, the move was made to maintain brand exclusivity, but the process was complicated by the virus.
“We are restoring exclusivity to our sports cars,” President Lawrence Stroll said in a video posted by Aston Martin. “Rebalancing supply versus demand, which in the short term means lower wholesale volumes but necessary for future success.”
In the latest change at Aston Martin, former Mercedes-AMG manager Tobias Moers will succeed Andy Palmer as CEO at the end of this week.