Aston Martin posts $41.5m loss amid falling demand
Aston Martin has posted a £24.6 million ($41.5 million) loss for 2012 on the back of diminishing demand for its luxury sports cars.
The Telegraph in the UK reports demand for the Gaydon-based manufacturer's high-end V8- and V12-powered models fell nine per cent last year.
The iconic sports car maker has now lost £46.1 million ($77.8 million) over the past two years, following losses of £21.2 million ($35.8 million) in 2011.
In accounts filed with Companies House, Aston blames the “market segment [which] has been severely affected by recession” and highlighted “weakness in European markets and vehicle launches occurring in the fourth quarter”.
Aston Martin launched the updated DB9, Rapide S and Vanquish between October and January – all three being costly one-time expenses – to kick-start its 100th anniversary celebrations in 2013.
Despite the update, the DB9 is now one of the oldest sports cars on the market, having debuted in 2004. The entry-level V8 Vantage – launched in 2005 – is also growing long in the tooth.
Aston Martin’s technical partnership with Mercedes-Benz’s high-performance division AMG should help its financial situation by reducing its research and development costs. Under the deal, AMG will supply Aston with V8 engines, electric components and electronic architectures.
The news comes less than two weeks after Aston Martin confirmed it had ended production of the Cygnet, following dismal sales of the Toyota-based city car.
Aston Martin has set a roughly 7,000 annual sales target by 2016 from about 3,400 cars in 2012, with big demand coming from Asia as well as North and South America.
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