Aston Martin chief ousted
ASTON Martin’s boss is about to be ejected from the driver’s seat as the business grapples with the fallout of the coronavirus crisis.
Andy Palmer’s exit could be announced as early as today, capping two years of turmoil at the James Bond car maker since its float on the London stock Exchange.
he is expected to be replaced by German executive Tobias Moers, boss of high-performance Mercedes division AMG.
The 54-year-old would face a major repair job at the British brand, although the pandemic can be partly blamed for first quarter losses at Aston Martin widening from £17m to £119m.
The automotive industry has been thrown into turmoil by coronavirus and experts are now predicting the luxury goods market will also shrink.
Palmer, 56, architect of Aston’s ‘second century’ plan to launch new cars such as the 4x4 DBX, is said to have learned about an upcoming announcement of his departure from a journalist.
When asked about the report, an Aston spokesman refused to confirm his exit but cryptically added that it was ‘reviewing its management team’.
The shake-up – first reported over the weekend – marks the latest attempt by Canadian billionaire Lawrence stroll, 60, to stamp his authority on the business after leading its £540m rescue earlier this year.
stroll, who became executive chairman after the bailout, wants the firm to return to its roots in motor racing and making luxurious supercars. Within months of his arrival, Aston pushed back plans to release an all-electric car by at least five years and announced the brand would return to Formula One racing after an absence of 60 years.
Palmer claimed to have ‘the support of the board and of Lawrence stroll’ in January but since then chairman Penny hughes and finance chief Mark Wilson have both left, suggesting a boardroom reshuffle is under way. Although Palmer is credited with leading Aston’s initial recovery after taking over in 2014, his decision to float the company in October 2018 has proved disastrous for investors.
shares have shed 98pc of their value since the listing amid falling sales, an oversupply of cars to dealerships and cash crunches that had its finances battered even before the Covid-19 crisis.
To stay afloat, the car maker has been forced to take out costly loans and stake much of its future on the DBX, its first ever sports utility vehicle.
Moers is seen as another petrolhead. he reportedly walked out of a meeting with other Mercedes executives when they decided to stop using powerful V8 engines in certain models, opting instead for a more environmentallyfriendly alternative.