Aston Martin Valkyrie Test Drive
Aston Martin’s Profit Plummets Amid Supply Chain Woes and China Slump
Industry News

British luxury carmaker Aston Martin issued a stark warning on Monday, reporting a sharp decline in annual profits and lowering its production forecasts due to supply chain issues and weak performance in the Chinese market. This news caused shares to drop by up to 28%, raising concerns about the company’s future.

Like other European automakers, Aston Martin has faced challenges in China, the world’s largest car market. Despite efforts to shift focus to newer models, the company has struggled to meet its growth and cash flow targets for the latter half of 2024.

New CEO Adrian Hallmark, brought in from Bentley, acknowledged the need to adjust production to tackle these challenges. Analysts at JPMorgan remain skeptical about Aston Martin’s ability to quickly rebuild investor confidence, citing concerns over financial and operational performance.

Aston Martin has warned that it may not achieve positive free cash flow in the first half of 2024 and has cut its 2024 wholesale volumes target by about 1,000 vehicles.

The company has blamed a growing number of late component arrivals due to disruption at several of its suppliers for the delays. This has raised questions about Aston Martin’s future ambitions and its fundamental valuation.

Aston Martin shares plunged by up to 28% on Monday, hitting their lowest level since November 2022. Despite declining sales in China, the company announced in July plans to launch its next-generation sports cars in the country, aiming to reverse its fortunes in this crucial market.

Aston Martin Valkyrie Test Drive
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