Aston Martin CEO expects return to profitability in 2018

TORONTO: Aston Martin Holdings Ltd expects a return to profitability in 2018, as the now money-losing luxury automaker plans to boost revenues with renewed versions of its sports cars, chief executive Andy Palmer said.

The British automaker, whose sports cars were popularised by James Bond films, is investing heavily to update existing models and develop several new vehicles through the end of 2019, including its first SUV, and the 2 million pound (US$2.5 million) to 3 million pound (US$3.7 million) Formula 1-inspired AM-RB 001, the most expensive new car ever built by Aston Martin.

“You’ve got a complete renewal during the course of 2018 of the sports cars,” Palmer told Reuters on the sidelines of the Canadian International Auto Show in Toronto.

Unlike other luxury sports car brands, which are part of massvolume auto groups and can benefit from economies of scale, Aston Martin remains independent, Palmer said.

“We have to amortise the R&D (costs) on a small volume,” he said. “That’s what justifies the car being expensive.”

The carbon fiber AM-RB 001, which is being developed with Red Bull Advanced Technologies for expected delivery in 2019, is using Canadian composite specialist Multimatic as a supplier, Palmer said.

All 150 cars have been sold, with another 25 to be manufactured as a separate variant for the track.

Palmer said one of Aston Martin’s highest volume models will be its DBX SUV, which when delivered in late 2019 would compete with the Bentayga produced by Bentley Motors Ltd, a division of the Volkswagen Auto Group.