The Canadian billionaire moves to help secure a better future for the British automaker.
Once again Aston Martin has found itself in financial dire straits, but Lawrence Stroll has finally stepped forward to inject some much-needed relief, becoming the new chairman. The Canadian billionaire led a consortium of investors, who banded together to buy a 16.7% stake in the automaker to the tune of £182 million. Andy Palmer is staying on as CEO for now. This move is already having an impact on the future cars made by Aston Martin, which in turn will no doubt affect values in the collector market.
There already was considerable anticipation of such a move by Stroll since it was revealed last year he was weighing the possibilities. It wasn’t until a filing with the London Stock Exchange this morning was made that anything was official. In addition, the move involves a £318 million infusion into the automaker, totaling the financial boost to a whopping £500 million
Of course, this brings up the issue of what will happen to Aston Martin’s motorsports, since Stroll owns the Racing Point Formula One team. Included in the deal’s terms is the rebranding of Racing Point as the Aston Martin F1 team starting in 2021. This move lasts for at least 10 years.
Included in the deal are measures to cut costs, including eliminating some jobs. As a result, the Lagonda brand, which would introduce SUVs as well as sedans into the market, won’t be coming as soon as previously anticipated. The launch has been pushed back until sometime after 2025. Also delayed is the market launch of all-electric models, including the Aston Martin Rapide E.
We can expect to see the Aston Martin Valkyrie launch sometime this year. After that the Valhalla, another mid-engine hypercar, will arrive.
This move by Stroll doesn’t necessarily mean other investors can’t also step forward to scoop shares in Aston Martin, although it’s unlikely Geely will. It was revealed previously that Geely has been in talks along those lines. Geely already owns stakes in Volvo, Daimler, and Lotus.
Source: Autocar
