Aston Martin, the prestigious British automaker, has faced setbacks with its new DB12 sports car, resulting in a quarterly loss that exceeded expectations and a downward revision of its 2023 volume projections. The challenges were primarily related to “supplier readiness” and delays in integrating the new platform supporting the redeveloped infotainment system. As a consequence, the company now anticipates delivering 6,700 units in 2023, down from its earlier estimate of around 7,000 units.
Despite these production hurdles, the demand for the DB12 remains robust, with orders already secured well into the second quarter of the upcoming year. Aston Martin’s Executive Chairman, Lawrence Stroll, noted that the launch of the DB12 has attracted a significant number of new customers to the brand, with 55% of initial DB12 buyers being new to Aston Martin.
Aston Martin intends to uphold the remainder of its 2023 outlook, emphasising the continued strong demand and its plans to boost cash flow and profit margins by introducing next-generation sports cars and limited-edition models in the current and upcoming years.
In contrast to Aston Martin’s situation, other automakers, including Mercedes-Benz and Porsche, have reported challenges caused by factors such as inflation and reduced consumer spending due to rising interest rates. This indicates that the luxury automotive sector is facing some headwinds.
Aston Martin’s financial results for the three-month period ending on September 30 revealed an adjusted operating loss of £48.4 million ($58.82 million) on revenue of £362.1 million. These figures fell short of the average analyst projections, which had anticipated a loss of £38 million and net revenue of £370 million. Despite the setback, the company has successfully resolved the production issues and remains optimistic about its prospects, particularly with the continued strong demand for the DB12.