Aston Martin is planning a cost-saving programme after admitting to a “very disappointing year”.
In a trading update the luxury automaker said it was expecting profits before tax of £130m-£140m for 2019, down on £247m in 2018.
Andy Palmer, president and group CEO of Aston Martin Lagonda, said the company would embark on a cost-saving programme alongside other actions to address the situation.
“From a trading perspective, 2019 has been a very disappointing year,” he said. “Whilst retails have grown by 12%, our best result since 2007, our underlying performance will fail to deliver the profits we planned, despite a reduction in dealer stock levels.
“We are taking a series of actions to manage the business through this difficult period. This will include a cost-saving programme alongside a focus on returning dealer stock levels to those more normally associated with a luxury company; winning back our strong price positioning is a key focus.”
In third quarter results for 2019, released in November, the company said: “We are taking actions to control our costs through an efficiency programme.”
The results also said four Aston Martins would feature in the upcoming James Bond film, No Time To Die.
Aston Martin would provide no further details on the cost-saving programme when asked by SM but the latest annual report, covering 2018, referred to a “strategic approach to procurement” and the appointment of a new vice president and chief purchasing and supply officer “whose role will be to lead the continuing optimisation of our existing supply chain” with a focus on cost, lead time, supplier performance and inventory improvement.
The firm has a supply base of around 302 direct suppliers and 126 indirect suppliers.
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