Aston Martin has received the cash boost it needs to secure its future, with billionaire Lawrence Stroll leading a consortium to take a 16.7 per cent stake in the firm for £182 million.
The rescue package also includes a £318 million rights issue, bringing the total to £500 million. The move from Stroll - father of F1 driver Lance - will result in his F1 team Racing Point (formerly Force India) being renamed as Aston Martin for the 2021 season onwards.
Poor sales in 2019 coupled to heavy investment in the creation of the DBX SUV (above) - which included the construction of a whole new factory in Wales - led to profit warnings being issued by Aston Martin. The company’s share price jumped by 25 per cent following the news of the cash injection.
Andy Palmer remains CEO, with Lawrence Stroll becoming executive chairman of the company. As part of the new arrangement, Aston Martin will be putting off its all-electric Lagonda sub-brand plans from 2022 to 2025 and will be targeting savings of around £10 million a year. The Valkyrie and Valhalla hypercars are still going ahead, as is Aston’s mid-engined Vanquish supercar.
Yep, that means the all-new, Aston-developed twin-turbo V6 is still happening. The company’s tie up with Red Bull Racing will finish at the end of 2020, meanwhile, but this won’t affect deliveries of the Valkyrie, which is jointly developed with the outfit.