£500m Aston Martin deal with Japanese is Brexit boost for May Huge exports package signed during PM trade visit
LUXURY carmaker Aston Martin Lagonda has revealed plans for £500 million in investment and trade with Japan.
The huge investment programme was announced by Aston Martin’s president and chief executive Dr Andy Palmer during his visit to Japan as part of the UK delegation accompanying prime minister Theresa May.
The package includes plans for exports worth more than £400 million, boosted by new sports cars and the introduction of the company’s first Sports Utility Vehicle, the DBX.
Aston Martin will buy more than £70 million in components from Japanese suppliers including Bridgestone, Denso, Mitsubishi and Yazaki.
The firm will open an Aston Martin Meta Technology and Luxury Accelerator in Japan, to be up and running in 2018.
The manufacturer provides jobs for 2,500 people in the West Midlands, including contractors and 1,700 direct employees, at its site in Gaydon, Warwickshire.
It is also due to open a second manufacturing site at St Athan, in Glamorgan, south Wales.
Mrs May said: “Aston Martin’s £500 million deal will directly benefit the Gaydon plant in West Midlands and the St Athan plant in Wales, helping safeguard existing jobs and opening new possibilities for future deals with Japan.”
The announcement is a boost for Mrs May, who hopes her visit to Japan will pave the way for a trade deal. She is having several meetings with Shinzo Abe, her Japanese counterpart, during the three-day trip.
But Japan has warned it is concerned about the effect of Brexit on Japanese businesses in the UK though Mrs May hopes to sign a trade deal with the country after Brexit.
Mrs May added: “As we prepare to MIDLAND luxury carmaker Aston Martin has announced plans to make its first estate model as part of its expanding Vanquish Zagato range.
The new estate will be a sleek, two-door ‘Shooting Brake’ model and a far cry from the traditional image of a car built for carrying the family and plenty of luggage leave the European Union, it is vital that we build on our existing ties with friends and allies. Aston Martin is a prime example of the innovative and world leading firms the UK is proud of and I’m delighted they are joining me on this important trade mission.”
Aston Martin’s aim is to grow on its about. Although no prices have yet been announced, the Zagato Shooting Brake is likely to cost around £650,000.
It is one of two new Zagato models announced by the Warwickshire car marque, with the ultra-exclusive range also to include a ‘Speedster’.
The new models come with success in exporting UK-made cars to Japan, one of its biggest overseas markets. It will also invest in a flagship global brand centre in Tokyo, create a new Aston Martin Japan HQ and further grow the Aston Martin dealer network across Japan. Dr Palmer said: “Last week we unveiled our half yearly results, which saw Aston Martin register its third successive quarter of pre-tax profit. Our improving performance reflects rising demand for our new and special products. “As the world’s second largest luxury car market, Japan is key to our future plans as we completely revitalise and expand our product portfolio under our Second Century plan. “We have long enjoyed a loyal following from Japanese customers and special styling features from Zagato, the famous Italian automotive design house in Milan.
The Speedster and Shooting Brake will join the others in the Zagato family, the Vanquish Zagato Coupe and Vanquish Zagato Volante which are produced at its base in Gaydon.
As we prepare to leave the EU, it is vital we build on our existing ties with friends and allies
the public alike, with our new dealership in Tokyo set to become our largest worldwide by volume.
“To ensure we are focused on the needs of Japanese and Asian customers, we are creating a Meta Technology and Luxury Accelerator office in Tokyo, reporting directly to HQ, to develop insights into luxury customer behaviour in Asia.”
Aston Martin currently exports a range of four sports cars to Japan including the new DB11 model.
In late 2019, the company will introduce a sports utility vehicle built at the company’s second manufacturing facility at St Athan in Wales.
More than 80 per cent of Aston Martin production is exported, a figure set to increase as it grows sales overseas, particularly in the United States and Asia.
Theresa May