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Aston Martin's losses triple in 2014
October 16, 2015 - 9:52 am ET
LONDON (Reuters) -- Aston Martin saw its losses almost triple in 2014, the fourth consecutive year it has failed to post a profit, following a recall of thousands of its cars and declining sales in China.
The brand posted a loss of 71.8 million pounds ($110.9 million) last year, compared with a loss of 25.4 million in 2013.
CEO Andy Palmer told Reuters earlier this week the automaker would not return to profitability until at least 2017 as it pumps money into an expansion that includes plans to build its first crossover SUV.
Sales of the brand's elite range of luxury sports cars fell from 4,200 in 2013 to 3,661 in 2014, Palmer said. It had to recall most of its cars built between late 2007 and the start of last year due to the use of a counterfeit plastic material.
The carmaker saw revenues fall 10 percent in the period which it blamed on a drop in sales, especially in China, according to a filing posted on Britain's Companies House financial register.
It said earlier this week it could ax nearly 15 percent of its workforce as it tries to turn around the business.
Following Palmer's appointment late last year, Aston raised 200 million pounds from the its major shareholders, mainly Kuwaiti and Italian private equity firms, with plans to build around 15,000 cars by the turn of the decade.
Aston, which is 5 percent owner by Germany's Daimler, is examining where to locate a new plant for its DBX crossover model, with a decision expected by the end of the year.
Contact Automotive News