350 part-built Aston Martins held in factory
PROBLEMS getting parts have left Aston Martin with 350 unfinished cars stranded on its production lines.
The luxury car marque said supply chain problems meant the vehicles were left waiting to be finished at its factory at the end of June, putting a £80m dent in its cash reserves.
Aston Martin did not disclose which parts were missing from the 350 DBX 707 SUVS, but carmakers have been struggling to source computer chips used to control steering, entertainment and safety features due to industrywide shortages.
“These isolated but impactful issues pushed planned deliveries towards the end of the period,” the company said.
The company still expects to hit its target of making 6,600 cars this year.
Production issues contributed to a wider £285m loss for Aston Martin in the first six months of 2022, up from £90.7m in the same period last year.
Higher debt payments also weighed on performance as the pound sank against the dollar, the currency in which the company does most of its borrowing.
The company’s debt has ballooned to £1.27bn, driven by the high coupon the company pays.
Aston Martin raised $150m in 2019, paying an eye-watering 12pc coupon at a time when borrowing rates were at historic lows. Standard & Poor’s slashed the car maker’s rating to junk status shortly after.
The carmaker is currently raising £653m from existing investors and Saudi Arabia’s sovereign wealth fund to pay off its debts and fund production lines for a new fleet of battery powered models. As with its competitors, it must find hundreds of millions of pounds to electrify its fleet to comply with regulations heralding the end of petrol and diesel-powered cars.
Analysts at Third Bridge estimate that £200m is needed per model to convert to electric.
Aston Martin had £156m in cash at the end of June after spending £263m in the first half of the year.
Its fundraising is expected to close by the end of September.
The company was able to raise the price of the cars it sold in the first half of the year to £174,000 on average, up 15pc on the year.