British manufacturer, Aston Martin has reported a bigger first-half loss, accompanied by the coronavirus pandemic which forced the company to stop production, and reduce stockpiles. Losses were reported to be $208.45 million and has a negative free cash flow of $485 million. Meanwhile, cash balance was $469 million in June, while there was $562 million of liquidity available.
Even though it’s too early to determine whether Aston Martin is recovering from the effects of the pandemic, having the DBX out in the market is expected to help the company with its cash flow issue.
“The marque is showing signs of recovery in China, which is a good indication as the country plays a crucial role of being one of the key markets for the company and in particular, the DBX.”
In terms of reducing stockpiles at its dealerships, the move was done to maintain exclusivity of the brand, but the process was complicated by the virus.
“We are restoring exclusivity to our sports cars,” chairman Lawrence Stroll said in a video posted by Aston martin. “Rebalancing supply to demand, which in the short term means lower wholesale volumes but necessary for future success.”
In the latest change at Aston Martin, former Mercedes-AMG head Tobias Moers will take over from Andy Palmer as CEO at the end of this week.