F1 billionaire set to buy £182m stake in troubled Aston Martin

ASTON MARTIN LAGONDA has announced plans to raise £500m in emrgency funding.

A consortium, led by the Canadian billionaire Lawrence Stroll, will raise £182m of the funds needed to protect the future of the British manufacturer.

The company, which opened a new facility in south Wales, said it will raise a total of £500m through the group’s investment as well as a £318m rights issue supported by major shareholders.

Mr Stroll, owner of Formula One team Racing Point, and his consortium has purchased a 20% stake in the business.

Chairwoman Penny Hughes said Aston Martin’s “difficult trading performance in 2019” put severe pressure on its liquidity and left the company with “no alternative” but to secure significant investment.

“Without this the balance sheet is not robust enough to support the operations of the group,” she said. “Notwithstanding recent weak trading, the strength of the Aston Martin brand and our expanding portfolio of cars has allowed us to attract a strong new partner in Mr Stroll to support the turnaround of the business.”

The car-maker said 2019 was a “disappointing year” after trading fell below expectations due to weak sales of its Vantage model.

Mr Stroll is also set to join the company’s board as executive chairman, replacing Ms Hughes, as part of the deal.

He said: “Aston Martin Lagonda makes some of the world’s most iconic luxury cars, designed and built by very talented people.

“Our investment announced today underpins the company’s financial security and ensures it will be operating from a position of financial strength.”

It’s a big year ahead for luxury car brand and Wales will be playing a huge part.

The facility in St Athan was officially opened in December and full production of the luxury car maker’s SUV will begin in the next few months.