Aston Martin Postpones Launch of First Electric Vehicle and Announces Workforce Reductions
Aston Martin, the well-known British manufacturer of luxury sports cars, has announced a further delay in the launch of its first fully electric vehicle. This news comes alongside the company’s decision to cut 170 jobs, representing about 5% of its global workforce, as it seeks to improve its financial situation. The company has indicated that its primary focus remains on plug-in hybrid cars, which combine a small battery with a traditional petrol engine. The first all-electric model is not expected to be available until later this decade.
This isn’t the first time Aston Martin has postponed its plans for electric vehicles. The brand, famous for being featured in the James Bond films, had aimed to introduce an electric car during the release of “No Time to Die,” which was filmed in 2019, but that plan was scrapped. Initially aiming to launch its first electric vehicle in 2025, Aston Martin has now pushed that date back further, causing disappointment among stakeholders. As a result of this announcement and the news about job cuts, Aston Martin’s share price dropped by 11%.
The wider automobile industry is also experiencing challenges as manufacturers around the world are re-evaluating their commitment to electric vehicles. While there has been a significant increase in electric car sales in many major markets, the growth has not been as rapid as many companies anticipated. For instance, Stellantis, one of the largest car manufacturers globally, recently stated that it would allow consumers the option to choose between petrol, electric, and hybrid cars.
Stellantis, which owns various car brands like Fiat, Chrysler, and Peugeot, reported a loss of €127 million ($105.4 million) in the second half of 2024, a stark contrast to the €7.7 billion profit it earned the previous year. This financial downturn and issues related to strategy were significant factors leading to the resignation of Stellantis’s chief executive, Carlos Tavares, in December. The company is now seeking a new CEO to take charge in early 2025.
Aston Martin recently appointed Adrian Hallmark as its new chief executive, marking the fifth leader in five years. Hallmark, who previously ran Bentley, has been brought in to help restore financial stability. Since the company’s acquisition in 2020 by the Yew Tree consortium, led by Canadian billionaire Lawrence Stroll, the focus has been on making the business sustainable. Hallmark asserted that the job cuts are a tough but necessary step toward reducing costs by £25 million annually.
The CEO mentioned that Aston Martin is facing “external challenges,” particularly in production due to supplier issues that emerged towards the end of the year. The company reported a loss of £289 million for 2024, which is a 20% increase from the previous year. Vehicle sales fell by 9%, landing at a total of 6,030 units—far lower than the target of 10,000 set when Stroll took over or the 7,300 planned during its disappointing stock market launch in 2018. The company is now adjusting its strategy to balance supply with demand and avoid forcing dealers to offer discounts on vehicles.
Overall, Aston Martin is navigating through a tough period, marked by delays in electric vehicle plans, job cuts, and financial losses, all of which reflect the strain facing many car manufacturers in today’s market.
