Maker reports $41 million loss in 2013
by Michael Strong on Oct.10, 2014
Aston Martin’s introduced a string of well received and critically acclaimed cars in the last few years, but what it’s netted is nothing…actually less than nothing. The maker lost $41 million in 2013.
With stylish and powerful vehicles like the Vantage, DB9, Vanquish and Rapide, the company’s getting attention and it is turning the tide. The 2013 loss was just a third of what the British maker lost in 2012.
In simple terms, the company is selling more vehicles. Last year, it sold 4,200 cars compared with just 3,800 in 2012. As a result, revenues were up 12.6%, according to Reuters.
While things are improving, the company faces an uphill battle. Many of its competitors in the luxury sport market are also seeing sales rise. Bentley saw an increase of 19% to 10,120 vehicles in 2013.
Maserati saw sales jump 145% with the introduction of the new Quattroporte and Ghibli. Mercedes-Benz and BMW both set new records with sales of 1.4 million and 1.6 million vehicles, respectively.
In fact, a quick run through the “really expensive car company list” shows that basically Lamborghini was the only significant luxury sport vehicle maker to see sales drop in 2013, yet it was still profitable.
China and its seemingly voracious appetite for cars is a top market for these types of vehicles. The rest of Asia is also a hotbed for pricey car sales along with the Middle East. However, the U.S. is still the biggest market for these types of vehicles and being successful here could be problematic for Aston going forward.
Hanno Kirner, Aston’s CFO, told Reuters the company is hoping to be profitable by 2016, but that could be a tall order due to the fact that Aston is struggling with new U.S. side-impact standards. The company filed for an exemption to the standard, but the results of that filing haven’t been determined. If they can’t get the exemption, the company’s bottom line will take a significant hit.