“The new era has officially begun” reads Aston Martin's announcement of its Formula 1 Team Title Sponsor Cognizant, a provider of digital products and services. The new partner will not just have a sponsorship role, but actively contribute to the F1 Team infrastructure development.

*Source:Aston Martin Media

Luxury today is about uniqueness. Automakers constantly enrich their services and offer a range to satisfy every client’s desire. Luxury automotive nowadays cannot be anymore just about producing beautiful, insanely fast, or extremely luxurious cars. The Customer journey has to be richer and involve the client in every step of the ownership.

The way to uniqueness begins with Tailor-made or bespoke programmes which allow each client to choose the car’s specification down to the smallest detail, making it effectively unique, as long as enough money is spent on it. Over the last decade, all the major luxury automotive manufacturers have significantly expanded their respective personalisation programmes including bespoke colours,  materials, and even car components along with dedicated experts that will help clients get their own perfect specifications.

There is a further step to all this though, during which really unique products, or one-off, are developed and it is not just down to specifications.

The concept of one-off vehicles commissioned by a wealthy client to a manufacturer is not new but dates back to about the beginning of the last century. At the time though, automotive was not about mass-production, economies of scale, and standardisation as it is today, so modern one-off are treated differently.

In this article, I listed 6 of the most interesting modern one-off cars ever produced in the luxury segment, either for their significance, or their history. The list could easily be much longer, but this time I decided to synthesise bringing only one example (almost) from each manufacturer considered.

1. ASTON MARTIN VICTOR

First in alphabetical order is the Aston Martin Victor. Presented in September at the Concours of Elegance at Hampton Court Palace. It is a bespoke car commissioned to and developed by Aston Martin’s Q (any James Bond fan here?). It is valued at around £2 million.

*Source:Aston Martin

It utilises the carbon monocoque of another iconic and rare One-77. The engine, 7.3 litre V12 is also taken from the One-77 but completely reworked by Cosworth and produces now 836 bhp. It takes interior and exterior elements from the expertise acquired from Aston Martin Vulcan and Valkyrie.

This car is extremely special, not only because just only one exists, but because it is Aston Martin's tribute to the 70s and 80s. A period when Aston Martin introduced a boxier look with the V8 Vantage.

The name Victor, instead, is a tribute to Victor Gauntlett, executive chairman of the company from 1981 to 1991. Under his guidance, the automaker embraced this particular styling but also cancelled the production of another special and now unique model, as only one exists today, the Aston Martin Bulldog.

2. BUGATTI LA VOITURE NOIRE

One of the most expensive cars in the world, priced at over £14 million, La Voiture Noire was presented at the Geneva Auto Show in 2019.

Built on the chassis of a Chiron heavily revised, with longer wheelbase, the same 8 Litre W16 producing 1500 bhp. The design by Etienne Salomé features some exclusive elements like 3D printed taillight bar, black-hued carbon fibre, six exhaust tips as well as advanced innovation like the wheels internal structure developed by AI.

*Source:Bugatti

This car too has an interesting story. The concept is based on the 1930s Type 57 Atlantic of which Bugatti built only 4 units. One, completely black and owned by founder Ettore Bugatti’s son Jean, went missing during World War II and was never found. The stunning modern interpretation pays tribute to the original La Voiture Noire.

3. FERRARI P80/C (SP36)

Ferrari has produced a considerable number of one-off cars throughout the years, with a program started over 10 years ago now, and vehicles’ styling varying to different degrees from their original platforms.

While all of them are noteworthy just for being unique Ferraris, the P80/C or SP36 is, if possible, even more special for two main reasons. First of all, because it is a race car. Differently from the other one-offs, it is not road legal. The platform is a 488 GT3, and the engine is the 3.9L Twin-turbo V8, not limited and producing 660 bhp, but at least externally it does not preserve any aesthetic element of it. Secondly, it is inspired by what are undoubtedly some of the most beautiful cars ever produced by the company, the Sports Prototypes such as 330 P4.

*Source:Ferrari

The car, in fact, is conceived to be presented without the rear wing too, in order to preserve a more elegant look. Price is said to be around £5 million.

Ferrari also published an interesting video featuring Flavio Manzoni himself, along with other Ferrari executives, discussing the P80/C development project.

4. LAMBORGHINI MARZAL

This is a very special, yet not well-known Lamborghini. The Marzal was initially conceived to be just a display car for international auto shows and add a more practical 4-seater to the Lamborghini lineup. It does preserve numerous Lamborghini typical design cues, such as hexagon shapes and rear window louvers. To that, many other elements like the large glass doors, the futuristic interior, and silver colour interior trim, make this design even more unique

The overall styling, realised, as many other Lamborghini designs by Marcello Gandini for Bertone, was then used for the Espada which has since become a classic Lamborghini. The engine is a 2 litre 6-cylinder engine designed by Mr. Dallara and producing 175 bhp.

What makes the Marzal even more interesting is the story of its first appearance. Monaco's Prince Ranieri III was so impressed with it that in 1967 chose this car for the lap of honour along with his wife Grace Kelly, then Princess Grace, before the F1 Grand Prix.

Value stands around €1.5 million.

5. MCLAREN X-1

McLaren presented its first one-off in 2012, the X-1. It did not produce other one-offs since, but according to a 2017 interview of McLaren Special Operations (MSO) Managing Director Ansar Ali with Autocar, the division had at that time the necessary facility to realise up to two or three similar projects per year.

The X-1 was modelled over the chassis, components, and 617 bhp twin-turbo V8 of the first McLaren Automotive model MP4-12C. According to Top Gear, discussions for this project began three years before its release between an undisclosed client and the then CEO Ron Dennis, and its price would sit at around £7 million.

*Source:McLaren

Overall, despite its polarising look, it is definitely a significant and interesting project from the Woking manufacturer as its first venture in the one-off development.

6. ROLLS-ROYCE SWEPTAIL

Last but not least, a look at the pure luxury of Rolls-Royce with the Phantom VII derived 2-seater Sweptail. Presented at Concorso D’Eleganza Villa D’Este in 2017 and priced around £9.5 million.

The Sweptail features numerous luxury options available within the Rolls-Royce range like the champagne bottle cooler, umbrella stored in the car side panel, as well as some more unique ones like the side drawer containing a bespoke laptop bag.

*Source:Rolls-Royce

The development process between client and company lasted four years and took inspiration from Rolls-Royce coachbuilding swept tails models of the 1930s. What makes this car more interesting is the mix of design cues from automotive and aeronautics, with clear inspiration from classic and modern yachts styling evident in exterior and interior elements such as the back deck behind the seats.

In the latest press release published by Aston Martin, the automaker announces its report for Q3 of 2020 along with the renewed partnership with Mercedes-Benz AG through a new strategic technology agreement and new financing.

The new agreement stands on the one established first in 2013. Since Lawrence Stroll became one of the major investors in the company and Executive Chairman, there has been a significant restructuring within the company. The main step has been the appointment of a new CEO substituting Andrew Palmer, previous Mercedes-AMG CEO Tobias Moers. If you would like to know more about him, what he has done so far, and the changes in Aston Martin you can check my previous article New Aston Martin’s CEO: Who is Tobias Moers.

According to the press release, the main targets stemming from this new arrangement are the production of 9000-10000 vehicles by 2025, revenue of £2 billion, and Adjusted EBITDA of £500 million.

But how is Aston Martin planning to achieve all this?

1. UPDATED FINANCIAL PLAN

Aston Martin will issue £125 million of new ordinary shares, plus £286 million of Consideration Shares to Mercedes-Benz, so-called in the document as part of the agreement for the technology the German automaker will provide. Such shares will be issued in tranches along with the delivery of the promised technology upgrades, with the first coming by the end of 2020 already, the second by early 2022, and the remaining within early 2023.

With Mercedes increasing its stake in Aston Martin, it will have the right to nominate a non-executive director of the Board initially. Later, with the shareholding reaches 15% and above they will have the right to nominate a second one as well.

Along with these measures, debt financing will be raised too through a first lien note issue for £840 million with 2025 maturity, a second lien one for £259 million maturing in 2026, and an £87 million revolving credit facility with 2025 maturity.

Both equity and debt issues should strengthen business resilience and support its growth strategy.

2. NEW MERCEDES-BENZ TECHNOLOGY

With the new Strategic Cooperation Agreement, Aston Martin for its new generation planned up to 2027 will have access to the latest conventional, hybrid, and full-electric powertrains, “State-of-the-art”electric/electronic (E/E) architecture, hardware, and software.

*Current Interior of a DBS Superleggera Volante equipped with Mercedes previous generation infotainment

This could be a big deal, since, under the current agreement from 2013, Aston only had access to the older generation of Mercedes’ electronic components, which is something that some customer seemed not enthusiastic about. The fact that now Mercedes has a much more relevant economic interest in the company and the transferred E/E technology is defined as state-of-the-art, could indicate that the latest component will be used by the British automaker too.

A second hint about this, and its importance stressed multiple times within the press release, is that this technology transfer will drastically reduce Aston Martin’s risk. Avoiding in-house E/E components production, all its resources will be focused instead just on new vehicles’ development and other areas of the business that contribute to making the car unique to the brand.

*Source: Aston Martin Valhalla Interior, Source: Aston Martin Media©

3. DEALER NETWORK DE-STOCK AND Q3 IMPROVEMENTS

As mentioned in previous articles, part of the updated strategy and renewed business model was the dealerships’ de-stocking in order to balance demand and supply and reposition the product line as that of a true luxury marque. 

ASTON MARTIN RESULTS FOR THE 9 MONTHS TO 30 SEPTEMBER 2020 (£ MILLION)

Despite the negative financial results, especially if compared to 2019 which was already a tough year for the company there are some factors to highlight. Naturally, the major cause of disruption in 2020 is Covid-19, and as the numbers of infected increase in many countries, it could still seriously worsen the market condition in the last quarter. Nonetheless, there are positive signs. First of all, the significantly lower wholesale volume, compared to 2019 both in the YTD and Q3 columns, are due to an effective de-stocking that reached over 1400 vehicles. So, a ‘necessary evil’ in this case.

Then, some national market improved more than others. Compared to Q2, China in Q3 experienced a +29%, which even starting from a low basis is still a noteworthy result. Third, even with the overall negative result, Q3 was an improvement over Q2. Of the total de-stock, 567 have been delivered just in Q3, which represented an acceleration, and operating loss was also lower than in the previous quarter. Finally, there was considerable debt reduction.

4. DBX

It has been said many times now that the SUV DBX is extremely important for Aston Martin. As of now the St. Athan plant, which has been created exclusively for the production of this vehicle (as further proof of its importance), has reached the full rate of production again. Also, in the press release CEO Tobias Moers mentions a “quality-led ramp-up as appropriate for our luxury product positioning”. 

ASTON MARTIN SALES BY MODEL CATEGORY IN 2020

The YTD column shows GT is the most successful category in Aston Martin line-up both in 2019 and 2020. But in Q3 DBX was by far the best-selling model with 345 units alone. This figure confirms the ‘solid order book’mentioned previously by Mr. Stroll and represents a positive outlook for the coming months.

5. NEW DELIVERY PLAN

After de-stocking, Aston Martin will implement a “disciplined production to order to generate a margin more aligned to the luxury automotive segment”.

The production target set for 2025, will include front-engine, SUV, and mid-engine vehicles. The newly introduced mid-engine line already counts Valkyrie which will be delivered from half of 2021, and Valhalla set to arrive in the near future as well. A third production model that should not be limited will be the Vanquish Vision presented at the Geneva Auto Show 2019.

The SUV line could be expanded as wellwith other models complementing the new DBX. Hybrid powertrains will account for 20-30% of Aston Martin production by 2024 and the first full-electric should arrive no earlier than 2025.

6. ASTON MARTIN FORMULA 1 TEAM

Lawrence Stroll’s F1 team Racing Point (already powered by Mercedes engines as well) will go under the Aston Martin brand from the 2021 season. This move will bring significant benefits to the automotive business with a rare model that just Ferrari and McLaren have enjoyed so far.

A successful Formula 1 team represents a powerful marketing tool, and the support by Mercedes, which has dominated the turbo-hybrid era of the sport, surely gives a relevant advantage. Additionally, from next year, 4-time World Champion Sebastian Vettel will join the teamtoo bringing with him his strong popularity as 

one of the most successful and respected drivers in the sport’s history.

The second, but potentially even more important, benefit of a Formula 1 team activity is the technology transfer that will be available for the automotive business’ mid-engine vehicles directly from the racing cars. This is something that has happened for quite a long time now, and with the new FIA regulation coming in 2022 new innovations could stem from it.

 

Aston Martin F1 Livery Concept, Source:Sean Bull Design©

 

OUTLOOK

The comprehensive plan and the closer ties with Mercedes, which has been extremely successful in the last few years in many automotive segments, look like the best recipe to reposition the brand, shield its products from depreciation and ensure sustainable growth and innovation aligned with the current market changes.

However, after a partial recovery, there is still much uncertainty around the Covid-19 progression, with various countries re-establishing restrictions and lockdowns. A second drop in sales and financial markets confidence is plausible, and while on one hand, the consequences could be even more severe than the ones experienced before, on the other some effects are now already known, and serious infrastructures and measures are already in place. Overall the outlook should be cautiously optimistic.

In August 2020, around three months after the official announcement, Tobias Moers has finally joined Aston Martin Lagonda as the new CEO. He leaves his previous role at the Mercedes AMG division and replaces outgoing Andy Palmer after almost six years.

Moers comes along with a major restructuring that began with Lawrence Stroll’s major stake acquisition at the beginning of the year. This process has seen also new CFO Kenneth Gregor joining the company in June. Mr. Gregor has a twenty-year experience in automotive and has previously worked in this role for over ten for Jaguar Land Rover.

So, at the time Mr. Moers joins Aston Martin, what is the firm’s current state? what did the Andy Palmer era create? And most importantly, who is exactly Tobias Moers, what has he done for AMG to create such great expectations?

ASTON MARTIN SALES FIGURES (2007-2019)

*2008-2012 data absent

Rapidly slowing sales, since before the financial crisis in 2008 up to 2014, saw the company trying to expand its customer base by attracting new segments. One more interested in performance rather than luxury, with projects like Vulcan. Another, the female audience, specifically with the newly released DBX, which was first teased with the concept back in 2015.

This effort brought large R&D investmentswhich in 2014 only increased by 45% to reach £115 million (FT). The new strategy resulted in the delivery of the new product lineup. DB11 in 2016, V8 Vantage in 2017, DBS Superleggera in 2018, their relative ‘Volante’ convertible versions. The latest is the SUV DBX, unveiled in 2019, for which Aston Martin built the new factory of St. Athan, which will eventually also become its own house for electrification.

Thanks to this new plan, after two years of stagnation the automaker enjoyed two very positive years in 2017 and 2018. The slowing sales in 2019 and the sharp drop in share price after the 2018 IPO led to the current situation.

ASTON MARTIN REVENUE (£ MN)

ASTON MARTIN EBITDA (£ MN)

ASTON MARTIN OPERATING PROFIT/LOSS (£ MN)

TOBIAS MOERS AT AMG

Moers joined AMG in 1994. At that time AMG was an independent engineering company modifying Mercedes cars for improved performances. By 1999 Mercedes-Benz acquired a majority stake in the company and by 2005 it became a wholly-owned subsidiary, Mercedes-AMG GmbH.

During this period, his responsibilities increased up until 2013 when he became AMG’s CEO substituting Ola Källenius who became head of Sales & Marketing for Mercedes-Benz.

Since AMG became part of Mercedes-Benz, it experienced a constant growth but with relatively low numbers, moving from 20,000 units sold in 2007 to 30,000 in 2013. 2008 the best year of this era saw a growth of almost 20% with the best-seller C63 AMG and SL63 AMG. The most important milestone of this period though has arguably been the release of the SLS, the first model entirely produced by AMG. In the following three years, the Roadster, GT3, and Black Series have been unveiled as well. Finally, AMG produced also a full-electric version for the super sports car.

But what happened when Mr. Moers took the role of CEO? How did he achieve such success? First a look at the graph below.

 

AMG AND MERCEDES-BENZ SALES FIGURES GROWTH PERCENTAGES BY YEAR (2007-2019)

*2009-2012, 2014-2015 and 2018 AMG Data are average growth due to lack of official figures

 

AMG’s growth from 2014, after Moers' arrival, up until 2019, in a stagnating automotive industry, compared with Mercedes-Benz is eye-catching, to say the least.

While representing some impressive numbers for the Mercedes high-performance division, there are some points to be made with regard to the graph.

First, considering the overall sales volume, much lower than that of Mercedes, it is naturally much easier for a division such as AMG to obtain high percentage growth. Nonetheless, the increase in sales was sustained even during the last two years, when Mercedes’ growth rate was almost stagnating.

Second, the brand overall direction was already partially established even before the change at the top. The SLS release in 2009 is the most important proof of this. So, while the numbers look great, important milestones were already set before the Moers era.

The key to this outstanding change of performance pace though is theAMG Performance 50Strategy.

The plan announced on the 45th anniversary of the company, detailed AMG’s strategic expansion. Starting with the introduction of a new segment in the product portfolio through the compact A45 AMG, the plan included numerous other scopes. Expansion of Performance Centres, improved customer service, the new development of lightweight materials, class-leading low consumption rates, sole production of all Mercedes V12 engines, improvement of the Driving Academy, and so on.

 

*2012 A45 AMG

 

All of this reflected AMG’s intention of becoming a real contributor to Mercedes-Benz sales and development. One declaration by then CEO Källenius though gives a measure of Moers’ success. In a press release, he was quoted saying: “We have decided to expand our model range from its current level of 22 vehicles to around 30 vehicles in the future. We are looking to increase our global sales, which today stand at around 20,000 vehicles, to more than 30,000 vehicles by the time of our 50th anniversary, and thereby assert our leading position in this exclusive segment”.

By their 50th anniversary, after 5 years under Mr. Moers’ direction, AMG reached over 60 models and versions in the product range, and over 100,000 unit sales.

There are 5 main factors that contributed to this success.

*AMG GTR Roadster

• First, further expansion in the compact segment. With the stronger branding that accompanied AMG’s growth, the opportunity to become a part of it with entry-level models has been crucial, especially as these are aimed at a younger and more dynamic audience, which in turn helped to change the image of the brand itself. The concept started in 2013 has been carried on successfully until now. 13 new compact model variations, in fact, have been the major contributor to the 2019 success.

• Second is the overall product range expansion. As mentioned previously, despite the initial target of the 5-year plan, with all the variants and different classes, AMG now counts over 60 different choices in its range. The range covers many segments ensuring to accommodate any need or preference a client might have.

• Third, the consolidation of the super sports car niche. After the SLS, AMG produced its second exclusive car, the GT, which by now also counts different versions. Coupés, Roadsters, and the single most performance-focused Black Series. Only in 2019, AMG’s sports car sales reached 28,400 units, a +48% mainly thanks to the GT popularity. To further this success the third model entirely produced by AMG, the GT Four-door, joined the family in 2018. The latest one should be the best combination of sportiness and everyday usability, which opens the supersport segment to an even wider audience.  

• Finally, two more factors, closely linked together, greatly increased brand recognition and prestige. The AMG Project One (now called just AMG One) and the success of the Formula 1 team.

  Mercedes-AMG Petronas Motorsport Formula 1 team enjoyed an unprecedented period of success, obtaining both Driver and Constructor World Championships for six consecutive years now. Along with this and other successes in DTM (now substituted by the participation in the Formula E championship), AMG announced the AMG One back in 2017.

  The £2.4 million hypercar is heavily based on Formula 1 technology, from the powertrain to numerous other components. The synergy created between the success in Formula 1 and the ambitious project is something very unique and that just a few companies can rival with (namely Ferrari or McLaren).

*AMG Media©

BACK TO ASTON MARTIN

The British automaker has close ties with Mercedes AMG and has a number of important milestones in place from now and for quite a few years ahead. If Mr. Moers will be able, as he has been previously, to bring focus and drive to this vision, then Aston Martin has some great years ahead.

The long-awaited, leaked and reported SUV by Aston Martin finally dropped on November 20th, 2019. Can the DBX help Aston solve its difficult financial situation and get up again?

Everybody in the industry seems to agree on the fact that the SUV is the way to go in the current automotive market, regardless of your segment. And companies in the Luxury Performance segment have been working on it for quite a while. The DBX, in fact, has been in the working for over 4 years, and the same probably goes for Ferrari, whose Purosangue has been rumoured too for years, with concepts and news from unreliable sources.

*Aston Martin DBX

Sales figures from competitors strongly support this strategy. Two of the latest ones that arrived on the market clearly show the astonishingly fast-developing trend that continues in a slowing automotive market. Because the industry that peaked in 2017 with around 79 million vehicles sold has been slowing down for the past two years, with the biggest contributor to this slowdown being China. In 2018, the total number of vehicles sold globally decreased to 78.6 million, with China going from 24.7 million of 2017 to 23.7. Forecasts for 2019 claim sales of around 77 million, confirming the downward trend.

I am of course referring to Lamborghini’s Urus and Rolls-Royce Cullinan. Sales figures clearly show how in each quarter in 2019, every model’s sales decreased, while the two SUVs sometimes even more than doubled the overall company’s figures (Figure 1 and 2).

FIGURE 1 - LAMBORGHINI QUARTERLY SALES FIGURES BY MODEL - 2018 2019

FIGURE 2 - ROLLS-ROYCE QUARTERLY SALES FIGURES BY MODEL - 2018 2019

Similarly, other companies in the space such as Bentley and especially Porsche have been doing the same for a long time now. There are no official data on the quarterly sales for 2019 by model, but looking at previous years it is evident like every SUV model consistently accounted for a large share of each company’s sales (Figure 3 and 4). Regardless of the overall deliveries that have decreased steadily at Bentley, while growing at Porsche, SUVs maintain a way larger share of sales over any other model.

Product cycles must be kept into account as well. Bentayga’s sales have significantly decreased since its first deliveries that started at the end of 2015. Nonetheless, its importance remained crucial in Bentley’s lineup and the model has been refreshed with a Hybrid version whose deliveries have started in October 2019 and that represents an important milestone in the company’s history. Porsche’s Cayenne sales slowed significantly in 2017 as customers waited for a model refresh which arrived that year bringing the deliveries to a record in 2018. Overall the two German SUVs registered on average at least double the sales of each other model in the lineup.

FIGURE 3 - BENTLEY BENTAYGA SALES OVER TOTAL FIGURE 2016-2018

FIGURE 4 - CAYENNE AND MACAN SALES OVER TOTAL FIGURE 2016-2018

Thus, both the product and the timing for Aston Martin seem just right to save the day. With no other competitors arriving directly against the DBX in the same segment. The company from Gaydon has also a powerful marketing weapon arriving to strengthen its efforts at the best time possible: a new 007 film. ‘007: No time to die’ will be released on April 3rd, 2019, exactly when the DBX deliveries are set to start, which does not seem casual. Even though so far, it looks like the SUV will not be featured in the film, we know that four different models will: DB5, Vantage, DBS Superleggera, and the stunning Valhalla.

The fact that the company’s financial outlook seemed unchanged after the SUVs official unveiling though, can depend on several factors. Let’s have a look at what they could be and what are the risks connected with them.

The UK political and economic environment uncertainty. Even if, after the general election the political future of the UK seems much clearer, there are many factors whose consequences will be only evident in the medium term such as the import and export deals and tariffs. CEO Andy Palmer officially stated that Aston Martin Lagonda has already set its strategy to hedge the risks of a hard Brexit in the best way possible. Nonetheless, even if potential issues with the supply chain are avoided by relocating a large percentage of it within the UK, a stronger currency could hinder the company’s exports. Especially considering that Aston’s only growing markets in 2019 have been the US and China so far.

*Lamborghini Urus

Connected with this issue there could be problems arising from the pricing. As of now, the DBX is priced at £158,000 before options, which is higher than some direct competitors such as Bentayga V8 starting at £135,000, Cayenne varying from £70,000 to £125,000 (Macan from £50,000 to £70,000 is entirely set in a lower pricing segment). It is anyway slightly cheaper than the Bentayga W12 and the Lamborghini Urus, respectively sold at £162,000 and £165,000 but that offers both considerably more power, and way cheaper than the £250,000 Rolls-Royce Cullinan which is much more focused on a superior level of luxury. In each perspective, Aston Martin seems to have taken the most sensible choices possible, avoiding too bold or risky features, which could be good for an everyday luxury SUV like it is supposed to be, but with the chance of it going a bit unnoticed compared with its competitors.

A third factor potentially limiting the DBX's success could be its powertrain choice. Some experts have questioned the decision of using a turbocharged V8 for the SUV produced at the new plant in Saint Athan, Wales. The new factory was previously advertised as Aston Martin’s home of electrification with the new full-electric Rapid E and the two models incoming for the Lagonda brand. Thus, a hybrid powertrain could have been the best option to compete in the current crowded and environmentally-aware market where even all-electric like the Audi E-Tron become viable options, even if set in a premium segment and not a full luxury one.

Finally, even if unlikely right now, a gradual change of trend in customers’ preferences could limit the company’s ability to reach its 14,000 units target.

All in all, the DBX seems well-executed and has been received positively from a technical point of view so far. Its segment seems as hot as ever too. Still, it is early to say if the new SUV’s shoulders will be strong enough to support the entire company. The objective is ambitious and the risk factors are many. One thing is sure though, not many options were left at Aston Martin to save its name.

Lawrence Stroll, born in 1959 in Montreal, is a businessman who made his fortune by investing in the fashion industry. Partnering with Hong Kong businessman and investor Silas Chou (曹其峰) he imported numerous high-end brands into Canada. Later, in 2011, they conducted the IPO for Michael Kors Holdings Ltd, renamed Capri Holdings Ltd at the beginning of 2019 after the takeover of Gianni Versace S.r.l.

He is also a well-known luxury performance car collector and soon, motorsport became another major component of his ventures. In 2018, he lead a group investment to buy Formula 1 team Racing Point.

If this major stake acquisition happens, the Formula 1 team would allegedly go under the name Aston Martin and change its racing livery. Moreover, the engine supply deal from Mercedes could become even stronger, considered the deal that the company from Gaydon already has with the German manufacturer for engine and internal electronic components.

Naturally, there are many unclear points in the situation, first of which is the standing sponsorship of Aston Martin for another F1 team, Red Bull Racing.

Going back to the company’s shares, the price saw a steady decline for over 6 months and a drastic drop in July 2019, corresponding with the release of the interim financial report for the first six months of the year. Despite the increase in sales granted by growing demand in USA and China, an almost £80 million loss against the previous years’ £20.8 million profits, much higher leverage, and subsequent negative EPS reflected the difficult situation of the company.

After observing the performance of the company in this last year, it is clearer how the speculation of a substantial investment by Mr. Stroll could positively affect the company’s outlook. First of all a significant infusion of capital, and secondly, why not, a clear business vision from a person who is successfully leading very diverse ventures in his career. Most of all, his involvement in motorsports and the passion for luxury performance automotive have surely had an impact on the suddenly improved trust in the company.

The potential involvement in the Formula 1 Championship whose popularity, through Liberty Media’s strategy, is gaining more momentum, has likely had its effects as well. With huge platforms such as the Netflix series ‘Drive to Survive’ the brand would have more opportunities to get advantageous deals.

An unrelated (to this matter) but crucially relevant factor that will be the long-term decider of Aston Martin’s future is the concurrent opening of the new factory in Saint Athan for the production of DBX. CEO Andy Palmer, according to an interview by Reuters released on Friday would have downplayed the speculation about new investors without completely dismissing them though. It still remains to be seen if these comments will hurt the company’s appearance in the investors' eyes, or its recent development will have a stronger impact in the long run.

Ultimately, the only thing that can truly change the trend for the British company is the success of its current strategy, and Aston Martin seems to be set on a good path, despite the present financial troubles. It will be a matter of a few months. If by early 2020, DBX orders will pour in as it is hoped for, by the time the special models presented at Geneva in 2019 (Valhalla and Vanquish) come around, given a steadier international trade condition, we will most likely see those shares going up again.