It’s not exactly a secret that Aston Martin doesn’t have a solid financial situation at the moment, but it appears the company is now preparing to raise funds to expand its range of models.
Aston Martin’s new CEO Andy Palmer wants the company to step up its turnaround efforts. In order to do that, Aston Martin plans to expand into new areas including crossover SUVs, luxury sedans and hybrid models, two sources with knowledge of the matter told Reuters.
To raise money to build new models, some of which may be sold under the Lagonda brand, Aston Martin is planning to issue new shares or bonds. Aston Martin is analyzing debt- or equity-raising options to finance a bigger plan. Furthermore, additional cash will be freed up by more efficient management of working capital such as vehicle and parts inventory.
The company will also extend its current recovery strategy by three years to 2020. “It’s an expansion from the current model range,” an unnamed source said. The fundraising is expected to generate somewhere between £100- £150 million ($156-$234 million), with any new shares offered to current investors. Neither Aston Martin nor its main shareholders, Kuwait’s Investment Dar and Italy’s Investindustrial, wanted to comment on the report.
Investindustrial and Investment Dar together control 93 percent of Aston Martin, while Daimler AG holds a further 5 percent of the company as part of a partnership struck last year. Under the agreement, the German carmaker will supply Mercedes engines and technology to Aston Martin.
Note: Lagonda Taraf pictured
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