American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Aston Martin raises £125 million amid US tariff fears, China slowdown

by admin March 31, 2025
March 31, 2025
Aston Martin raises £125 million amid US tariff fears, China slowdown

Aston Martin has secured over £125 million ($161.9 million) in new funding to stay on track amid deepening financial pressures and shifting global demand.

The luxury carmaker, known for its James Bond legacy, announced fresh capital through a combination of investment by its chairman and the sale of a stake in its Formula One team.

The company has struggled with weak demand from China, ongoing delivery delays, and the fallout from supply chain disruptions.

Monday’s announcement marks the sixth time Aston Martin has raised capital since Lawrence Stroll took control in 2020.

Formula One team stake sold to unlock capital

Aston Martin will generate part of the funds by selling a portion of its holding in the Aston Martin Aramco Formula One team.

While the company did not name the buyer, it confirmed that the deal would help unlock a premium to the current book value of around £74 million.

This stake sale is a strategic step to convert a non-core asset into liquidity, as the business recalibrates its global expansion and manufacturing plans.

The carmaker has not disclosed the size of the stake being sold.

The Formula One unit, which has gained visibility in recent seasons, remains partly owned by Chairman Stroll.

The sale is expected to boost Aston Martin’s financial flexibility as it confronts a volatile global environment marked by tariff uncertainty and slowing sales in key international markets.

Stroll’s stake rises to 33%

Chairman Lawrence Stroll’s Yew Tree Consortium will invest a further £52.5 million ($68.0 million) by purchasing 75 million Aston Martin shares at 70 pence each, a 7% premium to Friday’s closing price of 65.4 pence.

The new deal lifts Yew Tree’s stake from about 27.7% to approximately 33%, crossing the 30% threshold that typically requires a shareholder to offer to buy out remaining investors under UK listing rules.

To avoid that requirement, Yew Tree will seek a waiver from regulators.

Aston Martin confirmed that Yew Tree has shown interest in potentially raising its holding further, up to 35%.

Stroll has already invested close to £600 million ($778 million) in the company since 2020, making him one of its most influential stakeholders.

Delivery delays and China demand weigh on forecasts

The funding comes as Aston Martin faces ongoing operational challenges.

The company has struggled to meet delivery timelines, and its performance in China, a major luxury vehicle market, remains underwhelming.

Supply chain problems, combined with macroeconomic pressures, have pushed the carmaker to implement cost-saving measures, including a 5% workforce reduction.

On Monday, Aston Martin revised its 2025 guidance, saying it now expects only “modest growth” in annual car volumes.

This is a downgrade from its earlier forecast of mid-single-digit percentage growth.

The adjustment is partly due to new US tariff threats under the Trump administration, which could impact the pricing and competitiveness of British-made luxury cars in the American market.

Despite the financial pressures, Aston Martin shares rose 5.7% to 69 pence in early trading after the announcement.

Investor sentiment appears buoyed by the fresh capital and Stroll’s continued commitment.

However, the company’s underlying financial health remains strained, and the need to raise funds for the sixth time in under five years signals persistent structural issues.

The latest round of capital injection may ease short-term liquidity concerns, but questions remain about Aston Martin’s long-term strategy amid fierce global competition, rising regulatory hurdles, and macroeconomic headwinds in key markets.

The post Aston Martin raises £125 million amid US tariff fears, China slowdown appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Has DeepSeek really lowered compute demand in 2025?
next post
Sensex index slowly forms a bullish pattern, signaling a rebound

Related Posts

Delta cancels hundreds more flights as DOT opens...

July 24, 2024

What to expect from Indian markets ahead of...

October 28, 2024

What’s Honey and why are MrBeast, MKBHD, and...

December 24, 2024

Dollar Tree stock price analysis ahead of earnings:...

December 3, 2024

RGTI, QSI, QMCO, IONQ stocks are surging: time...

December 27, 2024

These 2 stocks could benefit from Musk-led DOGE’s...

February 14, 2025

Applebee’s owner plots turnaround to lure back fast-food...

May 11, 2024

PayPal stock price analysis: buy, sell, or hold...

April 27, 2025

UK climate targets at risk as high electricity...

June 25, 2025

Most Americans falsely think the U.S. is in...

May 25, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • How Donald Trump’s immigration crackdown may tank the labor market

      August 4, 2025
    • Trump’s tariff threat looms over India’s Russian oil deals

      August 4, 2025
    • Trump moves nuclear submarines near Russia: what triggered the move and what’s ahead

      August 3, 2025
    • BOE rate cuts offer little relief as UK households face mounting financial strain

      August 3, 2025
    • Retail investors shift focus to Europe as US valuations stretch

      August 3, 2025

    Categories

    • Business (3,583)
    • Investing (2,703)
    • Latest News (2,031)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved