Connect with us

Hi, what are you looking for?


Aston Martin shares slide 15% as it struggles to source car parts

Aston Martin shares slid after the company revealed it would deliver fewer cars than expected this year as it struggled to source certain parts due to supply chain problems.

The luxury sports carmaker had expected to sell 6,600 cars this year but said it may sell as few as 6,200. It said the parts shortages meant more than 400 vehicles were awaiting final parts at the end of September, which are expected to be delivered in the fourth quarter.

Aston Martin’s shares fell by almost 15% in London on Wednesday, making it the biggest faller on the FTSE 250 index. The stock price is down about 81% this year.

The carmaker also reported a cut in sales and profit forecasts for the year, after it bought back $185m (£161m) of its debt in order to cut interest payments. The company said pre-tax losses for the quarter to September more than doubled to £225.9m, compared with £97.9m over the same period last year.

The debt buyback was raised through a recent £654m funding deal that took place in September by selling discounted shares to existing shareholders and bringing in new investors, including Saudi Arabia’s sovereign wealth fund and Chinese carmaker Geely.

The carmaker’s executive chair, Lawrence Stroll, said volatility and uncertainty in the supply chain had led to disruption in its production aims by pushing the planned deliveries of the vehicles towards and beyond the end of the latest quarter.

Stroll said this was compounded by delays to outbound logistics to North America due to Hurricane Ian, but maintained that the situation was “already improving”.

“Our core [average selling price] is up 28% year on year to new record levels. This is a meaningful trend and is underpinned by our approach to being demand led,” Stroll said.

The company said profit margins for the year are also set to be lower than previous guidance as the result of the weakened pound against the dollar. However, Stroll said margins would increase by up to 300 basis points during the year.

He added: “On a year to date basis, we have seen more than 300 basis points of gross margin expansion as we continue on our journey towards our medium-term targets of 40%-plus.

“During the course of quarter three, we incurred incremental costs, over and above general inflationary pressures and specifically associated with mitigating and resolving the supply issues.

“The good news is that this specific supply chain issue has since improved and … we’re confident that we will deliver either on quarter four in terms of volumes, profitability and cashflows.”

Read more:
Aston Martin shares slide 15% as it struggles to source car parts

You May Also Like


What price happiness? The answer might be £3,360 a year, as the average UK worker would take a 10.5% pay cut to work for...


After taking a breather in the week before this one, the Indian equity markets resumed their up move. The headline index continued with its...


Small businesses are bringing forward their finance applications in order to beat expected further interest rate rises, according to new research. Four-in-ten (44%) SME...


The bears have been in charge of the market for months now, going back to the beginning of January when the S&P topped out...

Dislaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2023 | All Rights Reserved