Felisa out to press Aston Martin’s accelerator

THE business behind James Bond’s sleek supercars has been anything but polished over the past few years. But with a new strategy in place and a fresh pair of eyes, the market’s hoping things will accelerate.

Former Ferrari CEO Amedeo Felisa is taking over at Aston Martin. He’ll oversee the group’s efforts to churn out 6,600 vehicles this year – no small feat considering it fell short of the 1,650 cars needed per quarter.

Aston Martin’s gearing up to launch a new DBX model. If this lands well among customers, it could see wholesales rise considerably throughout the rest of the year.

While increasing the number of vehicles sold is a big part of the strategy, the type of car rolling off the assembly line is also important. Aston Martin has been pushing Specials sales. These are custom-made, limited edition vehicles. Last year, the group sold 98 – averaging 25 per quarter. In the first three months of this year, the company fell short of this aim with just 19. However, this does represent a marked increase from last year’s first quarter single Special sale.

Aston Martin is confident it can turbo-charge sales and meet its full-year targets. Longer-term, the group would like to see the number of cars sold rise to 10,000.

Presumably a large number of these cars will be electric, given the pace at which the world is transitioning to cleaner energy.

Right now, Aston Martin doesn’t offer any fully electric cars. This could be a critical obstacle to the group meeting its targets. It has inked a deal to use Mercedes electrification technology in its cars to fast-track EV offerings. But a Merc engine in Aston clothing might also chip away at brand value somewhat. With cashflow still in the red, Aston Martin’s also lugging around a growing debt pile.

The company’s long-term success rests on making its electrification strategy work. That’s a big ask for an incoming CEO, but given his experience Felisa should be up to the task.

“This article is designed for investors who make their own decisions without advice, if unsure whether an investment is right for you, you should seek advice. Shares can rise and fall in value so you could get back less than you invest.”