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    Aston Martin: The Stroll Era - How does it End?

    Just posted an article on how I think the Stroll Era might end at Aston Martin given their current financial condition and drop in the stock price:

    https://karenable.com/aston-martin-the-stroll-era-how-does-it-end/

    Comments?


    Re: Aston Martin: The Stroll Era - How does it End?

    An interesting read. Thank you.


    Re: Aston Martin: The Stroll Era - How does it End?

    In order to survive , and then to live, AM has to get car buyers to put their hard earned money on an AM instead of a MB, Porsche or Ferrari. This will never happen.  AM will always be, at best the 2nd, but most likely the 3rd choice.The market is not big enough another major sports brand, unless one of the big one fails, which is very unlikely .

    As to the F1 team,  it was to feed his ego , son included. If he can make some money, he better get out on this opportunity. 


    Re: Aston Martin: The Stroll Era - How does it End?

    Gnil:

    In order to survive , and then to live, AM has to get car buyers to put their hard earned money on an AM instead of a MB, Porsche or Ferrari. This will never happen.  AM will always be, at best the 2nd, but most likely the 3rd choice.The market is not big enough another major sports brand, unless one of the big one fails, which is very unlikely .

    As to the F1 team,  it was to feed his ego , son included. If he can make some money, he better get out on this opportunity. 

     

    I would add, unless someone is especially loyal to the brand, the purchase of an Aston will be a 3rd, 4th and/or above car, something disposable when the time comes, likely the first to go.

    Not many will live with an Aston as their primary car, unlike say a Porsche or a Mercedes. One can definitely live with a 911 only for years, or an SL for that matters, not an Aston. 


    --

     

     


    Re: Aston Martin: The Stroll Era - How does it End?

    Interesting views. I've just sold my C2S Cab (as the market is very hot in the UK at the moment and I never really gelled with the car) and am considering what to go for next - a DB11 or Vantage might be a consideration, but I am concerned about reliability given the usecase for the car. (some small journeys and maybe left for days on end)


    --

    991.2 C2S Cab, X3 Black\Black - 2 kids, 1 dog


    Re: Aston Martin: The Stroll Era - How does it End?

    bridggar:

    Interesting views. I've just sold my C2S Cab (as the market is very hot in the UK at the moment and I never really gelled with the car) and am considering what to go for next - a DB11 or Vantage might be a consideration, but I am concerned about reliability given the usecase for the car. (some small journeys and maybe left for days on end)

     

    Suggest you test drive a Roma and then the DB11.  


    Re: Aston Martin: The Stroll Era - How does it End?

    2.5years and 5600miles in my vantage and no issues. It is left standing in my garage for days on end. One of the most reliable cars I have ever owned. I have had issues with all my other cars. 


    --

    Tesla Model S P100d. 2018 991.2 GT3. 2019 BMW M850i Convertible. 2020 Tesla Model 3 Performance. 2020 Aston Martin Vantage. 2020 Mclaren 720S coupe. 🥳


    Re: Aston Martin: The Stroll Era - How does it End?

    Great analysis as always. It's a pity to see how terribly mismanaged the financials have become.  


    Re: Aston Martin: The Stroll Era - How does it End?

    Enmanuel:

    Great analysis as always. It's a pity to see how terribly mismanaged the financials have become.  

    Much appreciated.


    Re: Aston Martin: The Stroll Era - How does it End?

    Autocar Business reporting Aston-Martin to announce a significant investment tomorrow, reportedly either Saudi or Geeley money.  https://www.autocar.co.uk/car-news/business-finance-and-corporate/aston-martin-set-announce-huge-investment-package


    Re: Aston Martin: The Stroll Era - How does it End?

    CGX car nut:

    Autocar Business reporting Aston-Martin to announce a significant investment tomorrow, reportedly either Saudi or Geeley money.  https://www.autocar.co.uk/car-news/business-finance-and-corporate/aston-martin-set-announce-huge-investment-package

     

    and all of this after Stroll declared they did need any more money Smiley


    Re: Aston Martin: The Stroll Era - How does it End?

    He just skipped over that part of the narrative.  Is there any security laws he violated with his statements on funding and financial position of Aston?


    Re: Aston Martin: The Stroll Era - How does it End?

    Aston Martin to raise £653mn as Saudi Arabia becomes major shareholder

    Luxury carmaker rejects funding offer from China’s Geely and former owner Investindustrial

    5 hours ago

    Employees work on a car at the Aston Martin factory in Gaydon, Britain

    Aston Martin said its first half sales were lower than expected © Reuters

    Aston Martin will raise £653mn in fresh investment by bringing in Saudi Arabia as a major shareholder and launching a rights issue after rejecting an offer handing control of the luxury carmaker to China’s Geely and its former owner Investindustrial.

    Saudi Arabia’s sovereign wealth fund the Public Investment Fund will take a 16.7 per cent shareholding via a £78mn equity placing, giving it two board seats.

    The announcement propelled shares 12 per cent higher to 414.62p in early morning trading in London. 

    Aston will also launch a £575mn rights issue, with PIF, major shareholder Mercedes-Benz, and owner Lawrence Stroll’s Yew Tree consortium all agreeing to take up their rights.

    In total, Yew Tree, Mercedes and PIF will invest £335mn through the rights issue or the fresh shares, Aston said. This leaves other investors to pay up to £318mn through the rights issue, which has been fully underwritten.

    About half of the money will be used to pay down debt, which stood at £957mn at the end of March.

    Stroll told the Financial Times the fundraising was important to “deal with the God-damned debt”.

    Line chart of Aston Martin shares have fallen sharply showing On the brakes

    He stressed the business “did not need to raise money to execute the business plan,” but admitted fears over debt levels had weighed down the share price.

    The cash gives the company an “extra money cushion”, he added.

    Aston also rejected a rival £1.3bn investment proposal from China’s Geely and the carmaker’s former owner, the Italian investment group Investindustrial, it said on Friday. 

    Aston said the proposal was “an attempt by the Atlas Consortium [Geely and Investindustrial] to acquire a controlling and prospectively majority ownership position without any premium paid to existing shareholders”.

    The pair would have injected £203mn for fresh equity, making them the largest shareholder, although sitting below the 30 per cent threshold at which they would be forced to launch a formal takeover.

    Their proposal, received by Aston Martin last week, also included a £1.1bn rights issue.

    Aston rejected the proposal. It said it did “not believe that the proposal presented an attractive funding option or value creation opportunity for existing shareholders”. There is “no need for further discussions,” it added.

    Geely tried to invest in the company three years ago, when owner Stroll came into the business. The Chinese carmaker’s 2019 approach was backed by Investindustrial, which at the time was a significant Aston investor.

    Aston also said on Friday that car sales in the first half were lower than expected. It sold 2,676 vehicles in the first six months of the year, although it is still aiming to produce 6,600 this year in total.

    The company also pushed back the date at which it will start producing cash from 2023 to 2024.



    Re: Aston Martin: The Stroll Era - How does it End?

    CGX car nut:

    He just skipped over that part of the narrative.  Is there any security laws he violated with his statements on funding and financial position of Aston?

    Highly unlikely they would ever go after him on it.


    Re: Aston Martin: The Stroll Era - How does it End?

    What’s your take on the Saudi investment, SSO?


    --

    997.2 4S / BMW 745e / Donkervoort GT 


    Re: Aston Martin: The Stroll Era - How does it End?

    spudgun:

    What’s your take on the Saudi investment, SSO?

    They are taking a flyer.  Got in really cheap. If AML survives, should be a good return.  If it doesn't, loss is not even pocket change.  

    Its also interesting that Stroll asked for GBPO 200k from the Saudis and only got GBP 76k.


    Re: Aston Martin: The Stroll Era - How does it End?

    Still don't see anything exciting from AM on the horizon for a 'normal' car buyer. Other brands like Mercedes with the new SL for example have made big steps in terms of styling and technology I would have no idea what AM wants to throw into the mix... - DBS and DBX cockpit is a joke in comparison.


    Re: Aston Martin: The Stroll Era - How does it End?

    Having sold my C2S, I was interested in DB11 or Vantage but can't get excited about either on inspection. I just bought a Mini Cooper instead! LOL.


    --

    991.2 C2S Cab, X3 Black\Black - 2 kids, 1 dog


    Re: Aston Martin: The Stroll Era - How does it End?

    Let’s see what this is…..

    https://www.motor1.com/news/598955/aston-martin-teaser-video-senses/


    --

    2022 992 GT3. 2019 BMW M850i Convertible. 2020 Tesla Model 3 Performance. 2020 Aston Martin Vantage. 2020 Mclaren 720S coupe. 🥳


    Re: Aston Martin: The Stroll Era - How does it End?

    Probably Valhalla?


     
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