Aston Martin downgrades production outlook after delays with new car
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Aston Martin expects to produce around 300 fewer vehicles this year than it had previously forecast after it had problems ramping up production of one of its new cars.
The luxury carmaker now thinks it will produce 6,700 vehicles during the year, down from its previous forecast of 7,000.
The company’s shares plunged around 12% on Wednesday morning.
Aston Martin said it updated its annual outlook after initial delays linked to the new information and entertainment system limited production capacity for its DB12 car.
Given the slight delays in the initial production ramp-up we have marginally updated our volume expectations for the year
On the upside, it said: “Demand is very strong with DB12 orders into the second quarter of 2024 and production is now running at the rates required to meet our volume expectations for the year.”
The company left the rest of its outlook unchanged.
Revenue increased 15% in the quarter, hitting £362.1 million, with pre-tax loss almost halving from £225.9 million to £117.6 million.
The downgrade came even though the company increased the number of cars it produced in the first nine months of the year by 8% to 4,398.
“Our year-to-date performance has seen us continue to make progress on our strategic direction with strong revenue and margin growth,” said chief executive Amedeo Felisa.
“During the third quarter we commenced deliveries of the game-changing DB12, the first of our next-generation sports cars which has been met with industry-wide acclaim and exceptional demand since its launch.
“Given the slight delays in the initial production ramp-up we have marginally updated our volume expectations for the year.
“As we continue to transition the portfolio, we also delivered further sales of the sold-out DBS 770 which we expect to conclude during the fourth quarter.”
