Iconic British sports car maker Aston Martin will cut 5% of its workforce in a bid to save millions of dollars and begin a commercial turnaround.
Its chief executive, former Bentley boss Adrian Hallmark, tells investors the loss of 170 jobs is part of an expected $31.6 million saving to offset a sharp rise in losses and debt and with sales volumes forecasted to miss expectations.
The company's forecast for mid- to single-digit percentage wholesale volume growth in 2025 is below market expectations.
Adjusted pre-tax losses rose 48.7% to £323 million ($409.5 million) for the year ended Dec. 31, with net debt of £115 billion ($1.46 billion), up 43% on the year.
The company has already delayed the launch of its first battery-electric vehicle to focus on an ultra-luxury hybrid model while highlighting risks from potential U.S. tariffs and softer sales in China.
Hallmark says in a statement: “Whilst we began to make progress on the group's adjusted operating expenses in FY 2024...we need to deliver more improvements to support future financial performance and drive operating leverage.”
He adds that Aston Martin will prioritize its Valhalla mid-engine plug-in hybrid model, which he sayd will be a “significant contributor” to financial performance over the next few years.
The company plans to produce just 999 Valhalla cars, each reportedly priced at $1.1 million, with deliveries to begin in the second half of 2025.
Valhalla is expected to help drive positive adjusted operating earnings in 2025 and free cash flow in the second half, the company says. Overall core wholesale volumes will be similar to 2024 levels, it says.
