Even before Coronavirus caused a huge downturn in car sales, all was not well at Aston Martin. Demand for its sports cars has taken a big hit of late, thanks in large part to China’s economic downturn.
In response, Aston Martin is cutting back on sports car production to suit, and that’ll likely involve the loss of 500 jobs - around a fifth of its total workforce. All told the company - which earlier this year received a cash boost via investment from billionaire Lawrence Stroll - is looking to save nearly £30 million through various new measures.
In a statement, Aston Martin said, “the plan requires a fundamental reset which includes a planned reduction in front-engined sports car production to rebalance supply to demand,” but on a more positive noted that, “The company’s first SUV, DBX, remains on track for deliveries in the summer and has a strong order book”.
“The measures announced today will right-size the organisational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability,” AM concluded.
Among the shake-ups triggered by Stroll’s involvement is a change at the top - Andy Palmer, CEO of Aston Martin since 2014, stepped down last month. The former Nissan boss oversaw the wholesale replacement of the firm’s dated line-up during his tenure, making his seemingly enforced departure a surprise for many, despite the company’s present issues.
Gaydon will be in safe hands, however, with Mercedes-AMG chief Tobias Moers picking up the Astons reins from 1 August.