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Aston Martin shares plunge 16% after volume target cut

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Aston Martin DBS Superleggera

(c) Paul A. Eisenstein | TheDetroitBureau

Aston Martin shares plunged more than 16% on Wednesday morning after the British luxury carmaker cut its volume target due to production problems for its new DB12 model and posted a bigger-than-expected quarterly loss.

Deliveries of the next-generation DB12 sports car began last quarter and the company now expects 2023 volumes to come in at 6,700 units, down from a previous projection of around 7,000 units.

“The DB12 production ramp up was temporarily affected as supplier readiness and integration of the new EE platform that supports the fully redeveloped infotainment system was delayed,” Aston Martin said in its earnings report on Wednesday.

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The company added that these issues are now resolved but impacted third-quarter volumes and full-year production capacity.

Aston Martin Executive Chairman Lawrence Stroll said the launch of the DB12 has seen “extraordinary demand” and is bringing in new customers, with 55% of initial DB12 buyers new to the brand. The company will launch a second new sports car in the first quarter of 2024 and expects a “similarly resounding response.”

“Commencing deliveries of our next generation of sports cars is a major milestone marking the beginning of a completely new line up of front engine sports cars that will reposition Aston Martin as an ultra-luxury high-performance brand, enhance our growth and bring higher levels of profitability,” Stroll added.

The company maintained its 2023 outlook, citing this strong demand for next-generation sports cars as powering its plans to boost cash and margins.

This is a breaking news story and will be updated shortly.

Source: CNBC

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