Aston Martin’s troubles on and off the Formula 1 tracks are well documented, hence no surprise Lawrence Stroll and his advisors have forged a partnership to invest handsomely in the project to give it a boost.
Last week, Aston Martin announced plans to raise £653-million ($783-million) in equity capital as it seeks to lower its debt and secure its long-term future.
Autocar report that in total, executive chairman Stroll’s Yew Tree investment group, Mercedes-Benz and the Saudi Public Investment Fund (PIF) are collectively said to be investing around $400-million in Aston, with a further $380-,million being raised through the public share issue.
The goal for the iconic British manufacturer is to wholesale 10,000 vehicles per year, to generate $2.4-billion of revenue; their wholesale volumes for the first half of 2022 were 2676 vehicles, down from 2901 last year. It indicated it expects to hit more than 6600 wholesale units this year, the reports adds”
On the occasion of the deal with PIF Stroll said that the “announcement marks the latest success in the evolution of Aston Martin, the restoration of the business and balance sheet we inherited, and the acceleration of our long-term growth potential.”
“Overall, this is a game-changing event for Aston Martin, supporting the delivery of our strategic plans and accelerating our long-term growth potential.
It transforms our balance sheet, liquidity and cash flow profile and provides greater clarity on our pathway to become sustainably free cash flow positive and create significant shareholder value.
Stroll: Formula 1 has also ushered in a new era for our iconic British brand
What began as a family project to point Lance Stroll to F1 through a no expenses spared junior programme for the Candian, followed by noi exp[senses spared to get his son a seat; from paying to drive at Williams, saving a collapsing Force India, morphing that into Racing Point, marking time until it all became Aston Martin.
With Stroll junior now partnered in the team by four-time F1 World Champion Sebastian Vettel.
Stroll Senior continued: “Since I became executive chairman in 2020, we have made significant progress on our journey to become the world’s most desirable, ultra-luxury British performance brand.
“We started by fixing the core fundamentals of the company, successfully de-stocking the dealer network to rebalance supply to demand, optimising inventory levels aligned for an ultra-luxury business, and now benefit from the strongest order book we have seen in many years.
“We also signed a strategic co-operation agreement with Mercedes-Benz and have developed a breathtaking pipeline of products, starting with the DBX707 and V12 Vantage, all of which are aligned with our 40%+ contribution margin targets – a significant increase from the past.
“Aston Martin’s return to the pinnacle of motorsport with the Aston Martin Aramco Cognizant Formula One team, has also ushered in a new era for our iconic British brand.
“Our focus on building brand equity and unleashing the potential of Aston Martin is already delivering growing demand from a new generation of customers, with more than 60% new to the brand in 2021,” concluded Stroll.