Losses of £34.1 million follow in the wake of Aston Martin’s Cygnet’s failure
Aston Martin makes wonderful sports cars. Given reports that the company lost £34.1 million in 2012, they should perhaps stick to that.
The company’s venture into the super-mini category with their £31,000 take on Toyota’s £12,500 iQ is described to have “failed miserably in showrooms” and we at The Steeple Times plainly were not alone in our dislike for the vehicle. Aston Martin expected to sell 4,000 Cygnets per year. They have sold just 150 to date.
Described as “underlining a debilitating lack of new products at Aston”, the focus on the Cygnet has indeed been a mistake. Similar vehicles produced by Mercedes-Benz and Audi were half the price and now Aston Martin have had to book a £12.6 million impairment on assets related to the car in the wake of quietly killing it off.
Warwickshire based and backed by Kuwaiti private equity group Investment Dar and Italian private equity group Investindustrial, Aston Martin thankfully may still turn things around. Mercedes-Benz are in the process of completing a non-cash deal for a seat on Aston’s board in exchange for access to their AMG engines and technical expertise. Better times are hopefully ahead for James Bond’s favourite firm of carmakers.
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