Unlike many of its bigger, more successful rivals, Aston Martin doesn’t have the resources of a rich parent company to help fund operations. After recently receiving a credit downgrade from investment rating firms, however, financial help is at hand. In December 2012, Investindustrial agreed to buy a stake in Aston Martin Lagonda Ltd, securing the deal ahead of Indian automotive car maker Mahindra & Mahindra.
The British boutique car maker and Italian private equity group, Investindustrial, have finalised the deal that will see a 35% stake of the manufacturer sold off. Investindustrial is paying £150-million (approximately R2-billion plus) for the slice of the Aston Martin pie and will add further capital in coming years. Investindustrial now joins other major Aston Martin shareholders, Investment Dar and Adeem Investment.
Investindustrial will inject more than £500-million (R7-billion plus) of much needed funds into cash-strapped Aston Martin over the next five years. The investment is aimed at development of new products and expansion into new markets, particularly China, where the automaker is looking to create cars under its historic Lagonda brand. Investindustrial is said to have close links to Mercedes-Benz tuner, AMG, which could prove helpful in providing engine synergies across both brands.
Aston Martin sold nearly 4 000 cars in 2012, which earned it just over £64-million before expenses. Not a whole lot in the world of big bottom lines and exotic cars. Perhaps that is partly the reason why CEO Ulrich Bez, who has been in charge of Aston Martin since 2000, is reported to be resigning this summer?
Dr. Ulrich Bez will step down and take a more ‘ambassadorial’ role, according to reports. A potential successor for Bez hasn’t been offered up as yet and it’s not clear if the news is related to the Investindustrial deal, but we’d be surprised if the two were mutually exclusive.
Bez was appointed as CEO of Aston Martin under Ford ownership and stayed on even after Ford sold the company to private investors in 2007. His tenure has been seen as successful, with the company graduating from selling only a few hundred cars a year, to several thousand annually.
The British marque says production will remain at the luxury brand’s global headquarters at Gaydon in Warwickshire, where three production lines are responsible for the manufacturing of the current range, including the Aston Martin Rapide S and Vanquish.
