British Automaker Aston Martin is expecting almost double sales as well as a move back towards being profitable this year after sinking deeper towards losses in 2020, due to a hit caused by the pandemic, a change in bosses and a situation that forced the team to resort to raise cash.
As part of Thursday trading, the company’s shares jumped 9% early on after a forecast for around 6,000 sales to dealers in 2021 post a change in management and the effect on its performance.
The carmaker has had a tough time as it failed to meet the expectations that it received prompting billionaire Lawrence Stroll to swoop in to save the day.
The British firm made losses of around 466-million pound ($660 million), compared to a 120 million pound loss in 2019, as sales to dealers fell by approximately 42% to 3,394 vehicles, aided by the closure of showrooms and factories because of Covid-19.
As for this year, it expects “to see the first steps towards improved profitability” but is still likely to post a pre-tax loss, the carmaker said.
“I am extremely pleased with the progress to date despite operating in these most challenging of times,” Stroll stated.
Aston said demand for its first sport-utility vehicle, the DBX, which had rolled off the production line at the company’s Welsh plant in 2020, was strong in a crackable segment of the market.
The model accounted for 1,516 deliveries to dealers last year, resulting in the company expecting further growth in its first full year of sales, including the key market of China, where rivals such as Bentley see great demand.
“We had not even a half-year DBX production in wholesome so probably we are going to see over-proportional growth in China,” Chief Executive Tobias Moers, who took over in August, told Reuters.