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Aston Martin Expects To Achieve Profits In 2021 After Dismal Loss Last Year


02/27/2021


Aston Martin Expects To Achieve Profits In 2021 After Dismal Loss Last Year
The luxury car maker Asto0n Martin is hopeful of emerging out of the pandemic induced slump and expects that its will be able to increase its sales in 2021 by almost double of last year and thereby claw back towards profitability. 
 
This struggling car maker was forced deeper into trouble during the pandemic and was forced to replace its chief while also being forced to raise funds to stay afloat.
 
The company’s projection of being able to reach a total of 6,000 vehicle sales to dealers this year with the new management staging a turnaround in the company’s performance was received well by investors as its stocks rose soon after the forecast.
 
Since it went public in 2018, this car maker known world over for the use of its cars by the fictional secret agent James Bond has undergone a tough time. While not being able to meet investors’ and the market’s expectations, the company also burnt through cash which forced the company to raise funds as investments from the billionaire Executive Chairman Lawrence Stroll.
 
Last year, a loss of 466-million pound ($660 million) was made by the company while it had reported a loss of 120 million pounds the year before. The company’s 2020 loss was because of a drop of 42 per cent in the sale of vehicles to dealers to 3,394 units because of the closing down of showrooms and car dealerships due to the Covid-19 pandemic restrictions,
 
The car maker said that it expects to "to see the first steps towards improved profitability" for 2021, but warned that the company is still likely to make a pre-tax loss.
 
"I am extremely pleased with the progress to date despite operating in these most challenging of times," Stroll said.
 
The company expects strong demand for the first sport utility vehicle, the DBX – the first of which rolled off the assembly line of its factory in Welsh in 2020, and this will help the company to do well in this market segment which is lucrative one and which it has decided to enter now to enhance the its portfolio and the appeal of its brand.
 
Last year, 1,516 of the SUVs of the company were delivered to dealers and stronger growth in the sale of the DBX is expected by the company in the current year which would be the first full year for sale of the new model. The company also expects strong demand for the vehicle in the Chinese market – the largest car market of the world and where rivals such as Bentley are currently also experiencing strong demand.
 
"We had not even a half-year DBX production in wholesome so probably we are going to see over-proportional growth in China," Chief Executive Tobias Moers, who took over in August, said.
 
(Source:www.businessworld.in)