In listening to Aston’s 3Q results presentation by the new CEO and others they keep mentioning ‘de-stocking’ dealers. I searched to find out exactly what de-stocking means and could find no definitive answer.

I’m assuming it means that the Aston dealers sold their current in stock units at cost or wholesale just to get them off the lots. My question to those in the know, is my above interpretation correct, and if so, are the dealers still deeply discounting new Vantages and DB11’s at the current time?

Thanking you in advance.

 

You can get $100k off on a DBSS.

 

Dealers were required to buy large volume of Vantage's to be on the lot at the dealer. It's these cars they are mentioning. AML's model is for dealers to maintain a bare minimal stock and every car is ordered.

 

my best guess it's a revision of previous policy of overstocking or forcing dealers to take so many vehicles into inventory that supply was orders of magnitude greater than demand, resulting in massive dilution of pricing and leading to big incentive lease/finance deals. Get rid of current stock and perhaps go back to more balanced approach, more bespoke...

 

In 2018 & 2019, Aston Martin produced a large number of cars that were not customer orders and forced dealerships to take them. These cars have been sitting at dealerships for multiple months and to get them sold, the dealerships have had to discount them heavily (with Aston providing part of the discount funding). Forcing the excess stock into the dealerships helps sales on a very short term basis but has major long term costs and negative impact. What Aston has been doing is working this stock mountain down over the last 12 months.

Which is a good illustration of how badly they overproduced.

 

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Earlier in the year got a lease negotiated for a DBS Coupe and I thought the 8X,XXX discount was a lot, but 100K plus definitely sounds right on old stock.

 

Now the President is stepping down, interesting to see who fills the position.

 

5 years is a decent tenure. She's quite active organizing women only events, which I reckon is good for the brand. And then that PR stunt with a signed hand written letter (content probably written by an intern) to get existing owners into a new Vantage is nicely executed. Though my past interactions with her feel very distant (twice at car week and once at a dealer's event).

We need someone who really need to get the US market and continue to propel the brand forward.

 

Agree, something better has to come about in the means of product and marketing.

 

I found her to be cold and distant. Given she played a key role in stuffing stock into dealerships, I don't see this as a loss.

 

Laura Schwab was a guest on Jay Leno’s Garage a few years back and in my opinion she lacked the charisma and possibly even the general knowledge of the Aston line. The comment section of the attached video was less than positive.

 

ARGGY on a tear lately, back up to a $1.00. Wish I hadn't sold mine once I doubled my money...could be quadruple by now.

 

Still keeping my shares... I'm hoping that one day my shares of AM stock will pay for brand new model.... bought it @ ,33cents p/share.. loll,

 

I just took a look at one of Aston's key competitors Q3 resutls:

https://karenable.com/mclarens-q3-2020-results/

McLaren is better position for 2021 but hasn't yet addressed the long term debt issue.

 

it's remarkable how much it hurts to play it 'safe' thinking, "well, this can't go up much higher now can it, so i better sell...?" and then get screwed when it does go up and up and up. i've had it happen to me three times with tesla stock. it's about as bad each time as your first broken heart. it can hurt for years.