Aston Martin in talks over £200m Saudi investment
Aston Martin Lagonda is in talks with Middle Eastern investors about taking a £200m stake in the luxury car maker to provide finance for its next generation of vehicles.
Saudi Arabia’s Public Investment Fund, which already has holdings in Lucid Motors and McLaren, has been linked to a deal with the British company.
Aston Martin is struggling to finance its new range of sports cars and electric vehicles, saddled with nearly £1 billion of net debt and a £130m interest bill.
Sales are lower than two years ago and its Valkyrie hypercar model has been rolled out more slowly than expected.
In a stock market announcement, the Warwickshire-based company said: “Order books are robust and have strengthened further in recent months, with sports cars sold out into 2023 and order intake for DBX more than 40% higher than the previous year.
“In addition, Aston Martin Valkyrie production continues to pick up pace. The company is delighted with the customer and market reaction to new model derivatives and its recently enhanced management team are increasingly focussed on new model launches from 2023 onwards.
“The company regularly keeps its funding options under review. Any funding option, if explored and executed, would be to support and accelerate the Company’s future growth.”
In February, the chair and majority owner Lawrence Stroll insisted that the business did not need additional funding.
But news of its funding needs emerged this week in Autocar magazine, prompting a plunge in the company’s shares. They fell from 480p to 385p before recovering to 435.4p, a 9% fall on the day.
Last month, Aston appointed former Ferrari boss Amedeo Felisa as its new chief executive, replacing ex-Mercedes director Tobias Moers, Aston’s third chief executive in the past two years.