Aston Martin wants more than 20% of its sales to come from electrified models by 2024

Europe

Every fourth or fifth Aston Martin sold in 2024 will be electrified, with a plug-in hybrid version of the DBX ultraluxury SUV arriving in 2023, CEO Tobias Moers said.

The struggling British supercar maker can more rapidly electrify its lineup after securing access to advanced Mercedes-Benz technologies, including next-generation hybrid and electric powertrains. In exchange, Mercedes can boost its current 2.3 percent stake in Aston Martin to as much as 20 percent, the companies said on Tuesday.

Aston Martin previously said it would launch its own hybrid V-6 drivetrain in the Valhalla hypercar in 2021. Moers, however, hinted that the automaker could end the project and use a Mercedes powertrain instead.

“We are still working on that [hybrid drivetrain], but we now have alternatives. It’s too early to say” what decision will be made, he said during a call with reporters on Tuesday.

The Valhalla will be followed by the Vanquish mid-engine coupe, which will also have an electrified powertrain. Moers said people who buy mid-engined supercars now expected them to have hybrid technology.

Meanwhile, Aston’s first full-electric car will arrive in 2025-26 and be equipped with Mercedes technology, Moers said.

Under former CEO Andy Palmer, who Moers succeeded in August, Aston Martin had intended to launch its first full-electric car in 2021-22 under the revived Lagonda badge, but Moers confirmed that plan had been shelved.

“Lagonda has a different purpose for the future. Electric-driven cars are supposed to be Aston Martins,” he said.

Moers spoke of using an electric architecture from Mercedes, but stopped short of saying it would be a complete platform.
“If you did everything yourself, like creating a new EV architecture, your capex [capital expenditure] line would look dramatically more expensive,” Moers said.

Aston Martin could conceivably use Mercedes’s EVA electric architecture that will debut next year on the EQS upper-premium EV and be extended to a smaller-sized sedan.

Under their previous agreement, Aston Martin uses Mercedes’s infotainment technology as well as a V-8 engine developed by the German automaker’s performance arm, Mercedes-AMG, where Moers served as CEO before joining Aston Martin.

The technology delivered under the new agreement is scheduled to appear in Aston Martin models starting late next year or early 2022, Moers said. He also promised a “product firework” in 2023, hinting at a new front-engine sports car that is likely to replace the DB11 coupe and convertible.

Aston Martin promised to increase sales to 10,000 by 2024, up from 5,809 last year. That figure is well below the 14,000 sales targeted by Palmer for 2023.

Aston Martin said on Tuesday it swung to an adjusted loss of 29 million pounds ($38 million) in the third quarter, versus a profit of 43 million pounds during the same period last year.

Third-quarter revenue nearly halved to 124 million pounds.

Aston Martin is targeting annual capital expenditure of 250 million pounds to 300 million pounds from 2021-25.

The automaker said on Tuesday it raised 125 million pounds in a recent share offering bought chiefly by Permian Investment Partners, Zelon Holdings, and Aston Martin’s largest shareholder and chairman, Lawrence Stroll via his company, Yew Tree Overseas.

After the share offering and other fundraising, Aston Martin will have more than 500 million pounds in cash, the company said in a stock exchange filing. That amount is sufficient for its midterm to long-term requirements, Chief Financial Officer Ken Gregor said during the conference call on Tuesday.

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