Shares in Aston Martin Lagonda (AML) have plummeted on revised annual guidance and fresh supply chain issues affecting several of its suppliers.
The luxury automotive manufacturer’s stock is down nearly 20% to £1.28 on Monday after the Warwickshire company cut its sales guidance by 1,000 units “to address disruption in its supply chain and continued macroeconomic weakness in China.”
The company had previously said it would deliver high single-digit volume growth.
“External factors within the global automotive industry, including supply chain disruption and weak demand in China, are now impacting Aston Martin’s volume outlook for the remainder of 2024,” the company said in a statement to the markets.
“Concurrent with the significant ramp-up in production for the second half of the year, following new model introductions, the company is experiencing a growing number of late component arrivals due to disruption at several of its suppliers.
“As a result, an increasing number of vehicles are taking longer to complete, with these issues impacting the efficiency of its operations and delaying the delivery of its vehicles.”
An Iconic British Brand
Aston Martin is seen as an iconic British brand, a status aided by its vehicles repeatedly appearing in Ian Fleming’s James Bond books—and later the eponymous film franchise.
The brand’s association with the Bond films goes as far back as 1964’s Goldfinger, which was the first Bond film to put an Aston Martin car—the DB5—on screen.
The company’s cars have appeared in Bond films ever since.
Aston Martin’s commercial journey has been decidedly more difficult, however. In February, a turnaround plan helped the company halve its pre-tax losses to £240 million amid heavy corporate debt and an ongoing struggle to raise investment. The company’s shares are down 97% since it listed in 2018.
Adrian Hallmark, who took on the role of chief executive at the business at the start of September, said that his team had done “an exceptional job” in re-launching its brand and products. Hallmark took over from former Ferrari boss Amedeo Felisa in 2022, after Felisa only lasted two years in post.
“Near perfect execution was required to meet the company’s ambitious 2024 plan,” Hallmark said.
“However, it has become clear that we need to take decisive action to adjust our production volumes for 2024 given a combination of supplier disruption, the weak macroeconomic environment in China and a proactive decision to strategically re-align our production plans to optimise efficiency and achieve a more balanced delivery cadence in the future.
“[However,] having been with the company for a month I am even more convinced than before in its growth potential. The team at Aston Martin has done an exceptional job in launching a fully reinvigorated core range of vehicles over the last 18 months.”
With additional reporting by Christopher Johnson, data journalist, Morningstar
