AUTO INDUSTRY NEWS

Report: Aston Martin planning to raise funds for model expansion

Report: Aston Martin planning to raise funds for model expansion image

Text: Marcus De Guzman / Photos: Aston Martin Press | posted December 12, 2014 14:15

The company projects that it will be able to generate up to GBP 150 million for the expansion

Two sources close to Aston Martin recently stated that the British automaker plans to raise funds in order to expand to other car segment which includes crossovers.

According to Reuters, the loss-making British automaker made the move in an effort to turn around its sales under their new CEO, Andy Palmer. Due to the company's aging vehicle line-up and weak investments, Aston Martin missed out on the luxury car boom that saw the global market double by 5 years Reuters reported. Just last year, Aston Martin only managed to sell 4,200 cars, short of a pre-financial crisis peak of 7,300 in 2007.

So far, the company is pondering on using debt- or equity-raising options in order to generate a larger financial plan. If allowed, Aston Martin will be able to free up money by applying a more efficient management of working capital such as vehicle and parts inventory. The fundraising is projected to generate GBP 100 million – 150 million ( about PHP 7 billion – 10.5 billion) with any new shares to be given to current investors. Currently, Aston Martin is updating its current vehicle lineup under a GBP 500 million (about PHP 35 billion) investment strategy that was made back in 2012.

The British automaker will be making way to the Philippines early next year through a new automotive partnership between the Tagle group and the luxury automotive distributor Wellington Soong.

Source: Reuters