Aston Martin will make fewer cars than expected this year as production issues hamper its new DB12 sports car.
The British manufacturer said the luxury car, the price of which starts at £185,000, has been hit by supply delays and software challenges, and it now expects to sell 6,700 cars this year, down from previous guidance of 7,000.
‘Given the slight delays in the initial production ramp up we have marginally updated our volume expectations,’ said chief executive Amedeo Felisa.
These delays also contributed to mounting losses of £48.4million in the three months to September – higher than the £38million analysts expected.
But Aston Martin was lifted by strong sales of other models including the Valkyrie, which costs around £2.5million.
Teething troubles: Aston Martin said production of its new DB12 sports car, the price of which starts at £185,000, has been hit by supply delays and software challenges
Revenues were 15 per cent higher than a year earlier at £362.1million, with higher selling prices coming to the rescue.
Aston Martin made around £234,000 on average on each car sold. And despite the production glitch, it expects to hit its target of £2billion sales per year by 2025.
Nonetheless, shares still slumped 8.9 per cent, or 19.5p, to 199.3p – having lost nearly all their value since they listed in London in 2018.
Barclays analyst Henning Cosman said the results were ‘unconvincing’, with ‘question marks on execution and demand’ over the business.
Billionaire chairman Lawrence Stroll has been attempting to turn the Warwickshire firm around since he bailed it out in 2020.
Last month his investment firm Yew Tree Consortium upped its stake to 26.2 per cent. It first invested three years ago, buying a 16.7 per cent stake.
Chinese conglomerate Geely – the owner of Volvo and Lotus – and Saudi Arabia’s sovereign wealth fund, have come on board.
Geely became the third-largest shareholder in May, leading to speculation that it might attempt a takeover bid.
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