Aston Martin has posted a substantial loss for the first half of the year, prompting a drop in the car manufacturer’s share price.
In financial documents released by the British car manufacturer, it is shown that it lost £78.8 million ($95.55 million) before tax in the first six months of the year, compared with the £20.8 million ($25.2 million) profit it reported in the first half of 2018.
Aston Martin blamed the slowdown in the luxury vehicle segment, lower demand for its vehicles in Britain and Europe and spending on its new plant in Wales for its loss. Shares fell 12 per cent in response to the news.
“This has been a difficult period, and we have seen the market reaction, but we are taking the right actions to deliver our strategy,” admitted chief executive Andy Palmer.
In addition to its $95.55 million pre-tax loss, Aston Martin has reported that revenues fell to £407 million ($493 million) in the same time period due to the decrease in sales of its high-end cars and the increased popularity of the more affordable V8 Vantage.
Aston Martin is spending a significant amount of time and money on its first-ever production SUV, the DBX, and if recent sales figures from the likes of Lamborghini, Bentley, and Rolls-Royce SUVs are anything to go by, it is the DBX which could prove to be the company’s saving grace. Aston is of course also developing the Valkyrie, Valhalla, and mid-engined Vanquish as part of its long-term goal to establish itself as a legitimate rival to Ferrari.