Aston Martin is lowering its sales forecast for 2019 as well as cutting its investment plans by up to £40 million ($49.77 million in current exchange rates) as a response to rising costs from its aggressive investment and Brexit provisions.
The British car maker is now expecting to sell between 6,300 to 6,500 vehicles this year, compared to their earlier prediction of 7,100 to 7,300 vehicles, Reuters reports.
Demand for new Aston Martins dropped by 22 percent in the UK, the brand’s biggest market, and 28 percent in the rest of Europe. At the same time, Asia-Pacific and the Americas markets came up with double-digit gains.
Also Read: Aston Martin Says It’s Prepared For A No-Deal Brexit
“We are disappointed that short-term wholesales have fallen short of our original expectations,” Chief Executive Andy Palmer said. “We are today taking decisive action to manage inventory and the Aston Martin Lagonda brands for the long-term.”
According to a source familiar with the matter, Aston Martin will also cut production as a direct result of the lower sales forecast. Back in May, Aston Martin said that some of its markets were faced with a “challenging environment” and that is working to avoid potential issues with deliveries.
“The challenging external environment highlighted in May has worsened, as have macro-economic uncertainties,” Aston Martin said. “We anticipate that this softness will continue for the remainder of the year and are planning prudently for 2020.”
European car makers are battling with reduced demand for their vehicles, as well as uncertainty over a potential fallout from United Kingdom’s exit from the European Union. The shift to electric vehicles and ever-stricter regulations on a global scale doesn’t help car companies either.
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