When you click on links to various merchants on this site and make a purchase, this can result in this site earning a commission. Affiliate programs and affiliations include, but are not limited to, the eBay Partner Network.
Pretty much confirming what everyone suspected when Palmer got the boot and the AMG guy came in. Oh well... history repeats itself as usual. Aston has always lurched from corporate sugar daddy to corporate sugar daddy, losing scads of money along the way and producing some gorgeous automobiles over the years. Long may the trend continue!
Now if they would only give Reichman his pink slip and get a designer who still understands that less is more...
Last edited by spinecho; Oct 27, 2020 at 02:45 PM.
Pretty much confirming what everyone suspected when Palmer got the boot and the AMG guy came in. Oh well... history repeats itself as usual. Aston has always lurched from corporate sugar daddy to corporate sugar daddy, losing scads of money along the way and producing some gorgeous automobiles over the years. Long may the trend continue!
Now if they would only give Reichman his pink slip and get a designer who still understands that less is more...
There was bigger news behind the stock move. Aston announced a ~$1.1b private cross-border (USD, GBP) debt raise to refinance all their secured bonds and build liquidity for DBX production. Price talk is 9%. Bloomberg alert attached. If they get this done expect McLaren to follow with a similar transaction in the next few months.
Assuming the legal entity shown ties back to parent which now has a decent equity chunk with Mercedes. Secured, pathetic rating & 9% rate seems like a decent punt.
The deal is a tough sell. By the company’s own projections they’re burning cash for another 4 years, which is a lifetime. Three weeks ago Jaguar Land Rover printed a $700mm unsecured deal at 7.75, the bonds traded through 7.5 in the secondary. Before today’s selloff 9 felt about right for Aston, given the deal’s 1st lien security and the backstop from MB pitted against their weak balance sheet and sky high leverage. But with Europe again on lock down, so much riding on continued momentum from DBX sales, and question marks around how well their new mid engine lineup will do, it’s difficult to handicap whether the bond market will go swimming for less than 10pct, if at all. If you want to help them, order a DBX.
Looks like the deal is getting done but w/ revisions. Dropped the GBP piece, USD only, added some more call protection and widened price talk to 10.5%. All in this deal will raise ~$1.4b USD to pay back debt, put cash in their coffers, and bridge them through the valley. Aston motors on.
Thank you for posting the link to the karenable article.
My takeaway from the article, and as one that is currently looking to purchase a lightly used or new Aston, is to wait until the dust settles. If they come out with new car designs as promised, and actually bring the technology (infotainment, screens, etc) up to modern standards, I am now more inclined to wait for this promise to materialize. If this promise is truly fulfilled and the ‘new’ designs are well received, I suspect that the value of the newer Vantages and db11’s released in the past few years could lose significant value.
Thank you for posting the link to the karenable article.
My takeaway from the article, and as one that is currently looking to purchase a lightly used or new Aston, is to wait until the dust settles. If they come out with new car designs as promised, and actually bring the technology (infotainment, screens, etc) up to modern standards, I am now more inclined to wait for this promise to materialize. If this promise is truly fulfilled and the ‘new’ designs are well received, I suspect that the value of the newer Vantages and db11’s released in the past few years could lose significant value.
I would probably wait a bit. I think your right on if the new designs are well received, the last generation will take a major hit.
I follow the karenable articles quite a bit. Love the perspective. I tried to be in every live webcast but the last one managed to attend the last 10 minutes during the q&a. Did not realize Marek R was absent though.
Here's what came in today from Tobias M.
Aston Martin now has everything in place to become one of the greatest luxury car brands in the world.
The transformation of Aston Martin has begun. Since joining Aston Martin this summer, it has been my ambition to build on the vibrant history of this unique brand and deliver the next generation of exhilarating products as we enter this new transformational era in Aston Martin’s history.
We have made significant progress already and last week, we announced that we have strengthened our long-term relationship with Mercedes-Benz AG, providing us with access to advanced technologies that will enable us to continue designing, engineering and manufacturing the most beautiful cutting-edge cars across the world.
We have also updated our plans for the business, incorporating the benefits of this enhanced partnership and we are targeting delivery of significant growth, an important part of which will be expanding our product portfolio, so these are indeed exciting times for all of us.
The expansion of our partnership with Mercedes-Benz AG is a critical step towards achieving our goals for Aston Martin. The capabilities of Mercedes-Benz AG technology will be fundamental to ensure our future products remain competitive and will allow us to invest efficiently in the areas that truly differentiate the products that we can offer to you.
We now have in place the right team, partner, plan and funding to transform Aston Martin to expand our product portfolio and roll out a range of products that exceed the expectations of our customers.
We have great ambitions for Aston Martin and I look forward to keeping you updated on our journey to become one of the greatest luxury car brands in the world.
I follow the karenable articles quite a bit. Love the perspective. I tried to be in every live webcast but the last one managed to attend the last 10 minutes during the q&a. Did not realize Marek R was absent though.
Here's what came in today from Tobias M.
Thanks. I also got the Tobias email. The Aston PR department has been busy. Interesting that they didn't include the latest Aston NY apartment announcement in it. More from the lack of focus management school.
Thanks. I also got the Tobias email. The Aston PR department has been busy. Interesting that they didn't include the latest Aston NY apartment announcement in it. More from the lack of focus management school.
Agreed on the lack of focus. Their marketing strategies were off as well, imo, even under Simon S. There are a lot of missed opportunities where they could have really pushed the new products for better alignments with lifestyle and branding.
