Currently reading: Aston Martin to cut 500 jobs due to reduced sports car production
British firm bids to increase profitability through reducing production levels of sports car lines
James Attwood, digital editor
News
2 mins read
4 June 2020

Aston Martin is planning to cut up to 500 jobs from its 2600-strong workforce as part of a £10 million cost-cutting programme in the wake of the coronavirus crisis.

The struggling British car maker says that the planned job cuts are intended to help boost profitability by bringing its cost base in line with reduced production levels of its sports car lines.

That's part of recently outlined plan that Aston Martin says will enable it to deliver profitable growth.

In a statement, Aston Martin said that strategic plan requires a “fundamental reset, which includes a planned reduction in front-engined sports car production to rebalance supply to demand”. 

Aston Martin will launch a consultation process with employees and trade unions over the job cuts, which it says are part of a range of “decisive” actions taken to lower costs and expenditure. 

These include operating cost-cuts of around £10m in addition to a previously announced set of £10m savings. Aston Martin also planning to reduce manufacturing costs by £8m and capital expenditure by £10m, with related cash restructuring costs totalling £12m this year.

Aston Martin recorded a pre-tax loss of £118.9m in the first three months of 2020, with sales and production affected by the pandemic. The firm is gearing up to launch the crucial DBX SUV this year and recently named Mercedes-AMG chief Tobias Moers as its new chief executive to replace Andy Palmer.

Meanwhile, a regulatory filing recently revealed that Aston Martin's second-biggest shareholder, Investment Industrial Advisors Limited, has reduced its stake in the firm. In the document, the company listed a stake of 14.99% in the British car maker, compared with 19.92% previously.

READ MORE

Aston Martin names Mercedes-AMG chief as new boss

Opinion: what new CEO Moers will bring to Aston Martin

Aston Martin posts £119m loss due to coronavirus

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11

4 June 2020

Will those fired include Marek Reichman?

 

It's his disasterous designs that time after time have let down those at Aston.   Without a desireable design Aston aren't finding the customers they need.   However you look at it, that problem rests with the designer.

 

Reichman must go to save Aston Martin.

 

Then we need someone competent, maybe even a genius like the next Ian Callum.

 

4 June 2020
Absolutely. They've replaced timeless elegance with dogs breakfasts across the range. How about sticking previous bodies on current running gear... ? Daft, but could hardly be worse than what they're making now...

4 June 2020
Symanski wrote:

Will those fired include Marek Reichman?

 

It's his disasterous designs that time after time have let down those at Aston.   Without a desireable design Aston aren't finding the customers they need.   However you look at it, that problem rests with the designer.

 

Reichman must go to save Aston Martin.

 

Then we need someone competent, maybe even a genius like the next Ian Callum.

 

 

Agreed. Said that when Palmer was caught out last year having dumped millions of shares at IPO price and was faced by The City asking "WTF" at a few-pence-in-the-pound return.

DB10 was OK but the idiot who allowed those rear diffuser fins and shark-grille ought to be dragged through the streets of Gaydon and St Athans as culprit for multiple redundancies. 

Thankfully we've now got Stroll, Moers and Wolf in management roles: these guys know the difference between marketing BS and bottom-line results.

5 June 2020

While Marek's on board AM still has a chance. 

DB11?  Elegant and muscular.  DBS Superleggera?  Brutish.   Vantage?  Tight and lithe.  DBX?  Possibly the only good looking faux wheel drive.

Everything the guy toches is art.

As Moers has expressed "extreme admiration" for his styling, it's HIGHLY Marek's going anywhere in a hurry.

5 June 2020
jason_recliner wrote:

While Marek's on board AM still has a chance. 

DB11?  Elegant and muscular.  DBS Superleggera?  Brutish.   Vantage?  Tight and lithe.  DBX?  Possibly the only good looking faux wheel drive.

Everything the guy toches is art.

As Moers has expressed "extreme admiration" for his styling, it's HIGHLY Marek's going anywhere in a hurry.

 

Then explain why his designs do not sell?

 

4 June 2020

The designs are not any where near the right ballpark for the price and esteem held by this Marque,

4 June 2020

What £30k sports car looks like an Aston Vantage and we'll be queuing up to buy one now the dealers are open, amazing value for money 

4 June 2020

The Vantage which should be their big seller in the sportscar sector looks horrible.  The interior is not the best and they are expensive. You could forgive the latter two if it was an extremely good looking car, it is not.

They have the good looking DBX coming up and then the range of mid engined hypercar / super sports cars which look functional.  They need to rehash the Vantage design immediately.

What they should do is sack their designer and whilst looking for a new one get a few graduate automotive design students to pen the new vantage. Put the best 10 on Pistonheads and let the people decide. PH tells it as it is, the one best received should go into production.

 

4 June 2020

It's going to take some time to undue the mistakes of the past few years - but this Lawrence Stroll is certainly showing his metal now

4 June 2020

A large part of the problem is that the DBX should have been launched 6 months ago.

But before every Tom, Dick and Harry gets on their high horse about Aston, it's more telling and significant that McLaren axed 1200 staff. 1200! This proved my point that you can only recycle the same engine platform so many times under different bodies. It also proves my point that not many are interested in the new GT, which is neither fish nor fowl if one wants to make a spacious GT car. Adults can actually sit in the rear of the new Continental GT for short distances at least. It reeks of Lotus' 'Business class by Lotus' debacle when it launched the Europa.

McLaren have painted themselves into a corner.

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