AML - Stock Market Listing

[balise]

Share price now 134p, which is almost half what is was 6 months ago

[KevinBird]

https://stocks.apple.com/Aqe-99Bb3QKufeE3zvewRIQ

Shares in Aston Martin plunged by as much as 14% on Wednesday after the struggling luxury carmaker revealed worse than expected first quarter losses.
The company said it had sunk £139m (€162.52m) into the red during the first three months of the year, as losses rose almost 90% compared to £74m a year ago.
This stemmed from a 10% fall in overall sales to £268m, largely fuelled by a 63% drop in the number of SUVs sold.

[SSO]

Thankyou4calling said:

250 DBX'S and total sales of 950.

Seriously that just can't continue.

It's less than half of even average.

Blimey

Is a far cry from the original target of 6,000 per year.

Just finished my analysis of Q1. In terms of wholesales, worst quarter since Q2 2020.

[Simpo Two]

KevinBird said:

https://stocks.apple.com/Aqe-99Bb3QKufeE3zvewRIQ

Shares in Aston Martin plunged by as much as 14% on Wednesday after the struggling luxury carmaker revealed worse than expected first quarter losses.
The company said it had sunk £139m (€162.52m) into the red during the first three months of the year, as losses rose almost 90% compared to £74m a year ago.
This stemmed from a 10% fall in overall sales to £268m, largely fuelled by a 63% drop in the number of SUVs sold.

All they need to do is sell just one car a year, but for £1Bn. That's how it seems to be going.

Personally I think the Gaydon days were more sensible.

[Piginapoke]

SSO said:

Thankyou4calling said:

250 DBX'S and total sales of 950.

Seriously that just can't continue.

It's less than half of even average.

Blimey

Is a far cry from the original target of 6,000 per year.

Just finished my analysis of Q1. In terms of wholesales, worst quarter since Q2 2020.

Thanks SSO, a good read as always.

I think you rather let LS off the hook - AML cost management appears borderline reckless in 23

[SSO]

Piginapoke said:

SSO said:

Thankyou4calling said:

250 DBX'S and total sales of 950.

Seriously that just can't continue.

It's less than half of even average.

Blimey

Is a far cry from the original target of 6,000 per year.

Just finished my analysis of Q1. In terms of wholesales, worst quarter since Q2 2020.

Thanks SSO, a good read as always.

I think you rather let LS off the hook - AML cost management appears borderline reckless in 23

Thanks.

On LS, not really, had already highlighted that in the earlier "Nuggets" article.

[Jon39]

SSO said:

Thankyou4calling said:

250 DBX'S and total sales of 950.

Seriously that just can't continue.

It's less than half of even average.

Is a far cry from the original target of 6,000 per year.

Just finished my analysis of Q1. In terms of wholesales, worst quarter since Q2 2020.

The unusual Aston Martin cost control model, can be traced back to and probably beyond, Sir David Brown.
Remember the tale, "Yes, you can have your car at cost price. That will be an extra £1,000."

“Annual income twenty pounds, annual expenditure nineteen pounds nineteen and six, result happiness.
Annual income twenty pounds, annual expenditure twenty pounds nought and six, result misery.”

I have referenced the Q1 reduction in SUV sales.
AML seem to make a habit of leaking information about forthcoming new models. Therefore some (perhaps many) potential purchasers must put off buying, when they become aware of model improvements.
AML give the changeover of models, as one of the reasons for the Q1 sales reduction. Of course, if those delayed buyers now proceed with their purchases, the numbers should recover, but if they might have become bored of waiting, or don't like the significant price increases, then it will be soup and in it.

[Forester1965]

What's happened to the values of the models with the less nice interior?

[SSO]

Forester1965 said:

What's happened to the values of the models with the less nice interior?

A 3 year old DBX is an under $100k car now in the US.

[balise]

Not far off in the uk. £90k now, much better to park your money in a Urus I think.

[Jon39]

balise said:

Not far off in the uk. £90k now, much better to park your money in a Urus I think.

A wide choice now at around £100,000.
Works - 2 years old, 12,000 miles, £110,000.
compared with,
Main dealer - 707, 6 months old, 2,000 miles, £175,000

[Thankyou4calling]

LS regularly rejoices that such a huge percentage of customers are new to the brand.

Given that we accept that as a fact a couple of questions

1. What's happened to all the existing customers given that sales volumes are 50% down.

2. If they're relying on a constant influx of new customers then are they doomed as it's not a bottomless pit.

Thanks

[alscar]

Thankyou4calling said:

LS regularly rejoices that such a huge percentage of customers are new to the brand.

Given that we accept that as a fact a couple of questions

1. What's happened to all the existing customers given that sales volumes are 50% down.

2. If they're relying on a constant influx of new customers then are they doomed as it's not a bottomless pit.

Thanks

1) I don’t know what percentage of existing customers have so much money that “ the price to change “ is academic but would guess over say the last decade the answer would also be less than 50%.
The other 50%+ are holding on to their existing models or moving marques.

2] Its not but LS’s strategy seems to be pile all the new models up up very expensive and sell as many as he can.

Astons or at least the modern ones have always suffered from painful initial depreciation but even with people buying the new Vantage or DB at close to £225- £250k off the showroom floor and then seeing perhaps £100k getting knocked off this as used won’t in itself guarantee a stream of used buyers as the price to change is still going to be an issue.

Obviously I hope I’m wrong.
I will probably never sell my GT8 and I still like the idea of a new Aston but am more likely to buy a Vanquish S anyway.

[Jon39]

Thankyou4calling said:

LS regularly rejoices that such a huge percentage of customers are new to the brand.
Given that we accept that as a fact a couple of questions
1. What's happened to all the existing customers given that sales volumes are 50% down.
2. If they're relying on a constant influx of new customers then are they doomed as it's not a bottomless pit.
Thanks

As you know, (for example) gaining one new customer and losing two existing customers, is going backwards.

We seldom hear much on here these days about repeat buying.
This topic has 11 pages, https://www.pistonheads.com/gassing/topic.asp?h=0&...
compiled by owners who bought more than one Aston Martin.
I am sure that one reason for not 'trading up' now, is the huge arithmetic difference between the value of a present car owned and the new prices. Inflation has obviously had an effect on widening that gap, which is unfortunate for AML.

Perhaps ever increasing congestion is also dissuading some buyers of fast, expensive cars. If so, that is yet another factor outside Aston Martin's control.

....................................................................

Unrelated to this topic, but there is an Aston Martin connection.

Henrik Fisker is a name that we know. Design Director at Aston Martin in the DB9 and V8 Vantage era.
He claimed those two cars were designed by him, although Ian Callum tells a different version of events.

Following time at Tesla, HF entered the world of car manufacturing.
(figures from Wikipedia)
His venture, Fisker Automotive raised a total of $1 billion from private investors. In 2013 voluntary bankruptcy was declared.

Another venture, Fisker Inc. There was an Initial Public Offering in 2020.
Those shares peaked at $28-50, but are now 3.7 cents.

Presumably the Fisker Inc investors would have been new investors, not the same ones who previously learnt the hard way with Fisker Automotive.
I believe the latest news is that production of the Fisker Ocean electric SUV has now stopped. 214 Fisker cars were sold in the UK during Q1 2024.

Will he try again ?
Perhaps raising money could be tricky with that track record.

Edited by Jon39 on Friday 10th May 17:32

[Jon39]

A generally successful investment strategy (although not with AML shares).
Buy and hold long-term, often proves to be a very worthwhile strategy. Ask Mr. Warren Buffett ($130 billion) about his 'hold forever' stocks.

One reason for this, is that no one knows when a market is suddenly going to rise.
Share buyers who attempt to 'time the market', tend to miss out on these events,
hence the saying, "Time in the market, beats timing the market”.

After a lacklustre period, the UK stock market suddenly increased by 6.75%, during the past three weeks.
Completely unpredictable.