Is a billionaire bailout on the cards for on the brink Aston Martin? Despite making more cars annually than at any other time in its 100-year-plus history Aston Martin is at the mercy of its own making. You would think that making and selling more cars would mean more profits. Not so for the legendary manufacturer of luxury supercars. Aston Martin’s massive decline in the stock market is a sign that imminent failure is around the corner. The company is burdened by overspending and debt. And not to mention wealth extraction from board members who should have played the long game. 

Aston Martin is run by investors, who have not necessarily invested their own money. Investors always seek a quick return on any investment. We know that the company has been financed by debt, however, slowing sales have caught the current group of investors off-guard. And now Aston Martin’s strategy is laid bare. It doesn’t look good. Is Aston Martin a victim of vulture capitalism? Yes and no, it is more so a victim of vulgar capitalism.

The Chinese automaker Geely has been seeking to make an investment. However, it appears as though their interest is on the wane. It may well be that Geely was looking for a significant shareholding at a bargain-basement price and Aston Martin said “no thanks”. Or it could be Geely has seen the accounts, scoured over the profits and loss and said, “no thanks, it’s too risky”.

Geely could wait for Aston Martin to hit the panic button and then make it’s the move when the stock price has lowered even further. But, for now, Geely appears to be out. Waiting in the wing is Lawrence Stroll, the billionaire Candian investor. He made his money by investing in luxury fashion brands and has a networth of $2.6bn.

If I was a stock market investor looking at the possibility of buying Aston Martin shares, at this point, I would be worried. Stroll is nowhere near a rich enough billionaire to bail out Aston Martin in the long term. Short term yes, long term no. Aston Martin needs to be part of a conglomerate with deep pockets that can invest in the future and bail it out when the going gets tough.

Aston Martin is banking on the DBX to manage its way out of a huge pile of debt. Reports suggest the company requires £400 million to stay afloat, Stroll is looking to invest £200 million GBP. Even with my math, that still sounds like a shortfall. That’s one of the reasons to worry if you currently own shares in Aston Martin.