Latest news with #YewTreeConsortium
ArabGT
6 days ago
- Automotive
- ArabGT
Aston Martin Retreats from Formula 1 Amid Financial Turmoil
Aston Martin, the legendary British luxury carmaker, is navigating a pivotal chapter in its history. Faced with mounting financial strain, the company has announced plans to sell its minority stake in its Formula 1 team and is reportedly considering delisting from the London Stock Exchange—a potential shift that could reshape its future. The automaker revealed its intention to sell a 4.6% share in AMR GP Holdings, the entity behind its Formula 1 team, in a deal worth roughly $146 million (£110 million). Although the stake is relatively minor and doesn't influence team operations, the move is a key part of a broader strategy to reinforce Aston Martin's financial foundation and refocus on its core luxury car business. The pressure on the brand has intensified in 2025. Aston Martin recently cautioned investors that it may barely break even or post only minimal profit by year's end. This pessimistic outlook stems from two major setbacks: a 25% tariff on vehicle exports to the U.S. and slowing demand in China—a market responsible for nearly a third of the company's sales. To counter these challenges, executive chairman Lawrence Stroll, through the Yew Tree Consortium, has committed to investing an additional £52.5 million by acquiring 75 million new shares. This move boosts the consortium's stake from 27.7% to 33% and provides essential capital to stabilize operations and fund upcoming initiatives. Behind the scenes, a more transformative change may be underway. Industry analysts suggest Aston Martin could be preparing to go private, shedding the burdens of public-market scrutiny. Delisting would simplify ownership, cut administrative costs, and offer the flexibility to pursue long-term strategic partnerships without the pressure of quarterly performance targets. Considering the brand's market cap has plummeted from £4.3 billion in 2018 to just £665 million today, such a shift appears increasingly likely. Key players in this potential evolution include the Yew Tree Consortium, Saudi Arabia's Public Investment Fund (PIF), and China's Geely. Despite the stake sale, the Aston Martin name will remain on the Formula 1 grid through a long-term commercial naming agreement. However, this raises broader concerns: will the brand's continued presence in F1 reflect genuine involvement—or merely serve as a marketing badge? Interestingly, the Formula 1 team itself has now eclipsed its parent company in value. With AMR GP Holdings valued at £2.4 billion ($3.2 billion), Aston Martin's 4.6% stake barely scratches the surface of the operation it helped launch. The company now stands at a strategic crossroads. Whether it embraces a private future, distances itself from motorsport operations, or reshapes its investor base, Aston Martin's next moves will determine whether it endures as an icon of British motoring—or becomes a cautionary tale of ambition tested by economic reality.
The Independent
30-04-2025
- Automotive
- The Independent
Aston Martin cuts US imports following Trump's tariffs
Aston Martin is scaling back US imports due to new tariff rules introduced by the Trump administration, the British car manufacturer has announced. The company revealed the move as it reported declining sales figures, but maintained its financial projections for 2025. Rather than exporting new vehicles to the US, which now face a 25 per cent tariff, Aston Martin is utilising existing stock held by US dealerships. This strategic decision aims to mitigate the impact of the new trade regulations. CEO Adrian Hallmark stated: "We are carefully monitoring the evolving US tariff situation and are currently limiting imports to the US while leveraging the stock held by our US dealers. "We remain vigilant in monitoring events and will respond to changes in the operating environment as they materialise." Despite the challenges posed by the tariffs, Aston Martin remains committed to its turnaround plan and expressed confidence in achieving its 2025 financial targets. Aston Martin is among European car manufacturers that have seen shares slide in value in recent months over concerns about the potential impact of tariffs on demand for their vehicles in the US. Last month, Aston Martin marginally reduced its sales guidance for the year due to fears the tariff rules could dampen wholesale volumes. The company, which makes around 30 per cent of its sales through the US, stressed on Wednesday that the ramifications of the tariffs are still 'uncertain'. It came as the firm also reported that operating losses grew for the first three months of 2025. Meanwhile, it reported a pre-tax loss of £79.6 million for the quarter, down from a £138.9 million loss a year earlier. Total revenues dropped by 13 per cent to £233.9 million for the quarter. It comes amid a significant overhaul at Aston Martin as it seeks to shore up its long-term finances. In February, the group said it plans to sell its minority stake in the Aston Martin Aramco Formula One team and confirmed that Lawrence Stroll's Yew Tree Consortium would invest a further £52.5 million to grow its stake in the business. Aston Martin said the two deals were expected to improve the group's liquidity by more than £125 million.
The Herald Scotland
30-04-2025
- Automotive
- The Herald Scotland
Aston Martin limits imports to US over new tariffs
The company nevertheless kept its financial guidance for 2025 unchanged as it continues to push through a major turnaround plan. Adrian Hallmark, Aston Martin chief executive, said: 'We are carefully monitoring the evolving US tariff situation and are currently limiting imports to the US while leveraging the stock held by our US dealers. 'We remain vigilant in monitoring events and will respond to changes in the operating environment as they materialise.' Aston Martin is among European car manufacturers who have seen shares slide in value in recent months over concerns about the potential impact of tariffs on demand for their vehicles in the US. Last month, Aston Martin marginally reduced its sales guidance for the year due to fears the tariff rules could dampen wholesale volumes. The company, which makes around 30% of its sales through the US, stressed on Wednesday that the ramifications of the tariffs are still 'uncertain'. It came as the firm also reported that operating losses grew for the first three months of 2025. Meanwhile, it reported a pre-tax loss of £79.6 million for the quarter, down from a £138.9 million loss a year earlier. Total revenues dropped by 13% to £233.9 million for the quarter. It comes amid a significant overhaul at Aston Martin as it seeks to shore up its long-term finances. In February, the group said it plans to sell its minority stake in the Aston Martin Aramco Formula One team and confirmed that Lawrence Stroll's Yew Tree Consortium would invest a further £52.5 million to grow its stake in the business. Aston Martin said the two deals were expected to improve the group's liquidity by more than £125 million.
NBC News
31-03-2025
- Automotive
- NBC News
Aston Martin shares pop as Canadian billionaire Lawrence Stroll invests more cash
Shares of Aston Martin jumped as much as 13% on Monday after the British luxury carmaker said it will raise more than £125 million ($161.7 million) through funding from Chairman Lawrence Stroll's investment vehicle and the sale of a minority stake in the Formula One racing team. Yew Tree Consortium, an investment vehicle led by Canadian billionaire Stroll, is paying around £52.5 million to increase its stake in the storied British carmaker. Stroll's stake in the company is poised to increase to roughly 33% from about 27.7% as part of the transaction. Aston Martin, famed for both its role in the James Bond movies and its history of financial ups and downs, also said it intends to sell its minority investment in the Aston Martin Aramco Formula One Team to raise at least £74 million. Shares of Aston Martin ended the session 7% higher, paring earlier gains. The London-listed stock is down around 39% year-to-date. 'This renewed support from Lawrence and his Yew Tree Consortium partners underlines their immense confidence in our team and the future of the Company,' Aston Martin CEO Adrian Hallmark said in a statement. 'By strengthening the balance sheet, this investment provides additional headroom to support our future product innovation and business transformation activities, which combined, will accelerate our progress into being a sustainably profitable company,' he added. Aston Martin announced plans last month to cut 170 jobs, roughly 5% of its global workforce, after swinging to a loss in the fourth quarter. Stroll said on Monday that he was pleased to underline his 'unwavering support and commitment' to Aston Martin, following investments of around £600 million into the company since 2020. 'This proposed investment further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription, which should greatly reassure shareholders, as I again increase my long-term ownership in the Company,' Stroll said in the statement.
Yahoo
31-03-2025
- Automotive
- Yahoo
Aston Martin gets new funding from Stroll
Aston Martin will raise more than GBP74m through funding from its chairman and the sale of its stake in the Formula One team he owns, as the luxury carmaker tackles rising losses. Lawrence Stroll's Yew Tree Consortium is also planning to invest a further GBP52.5 million into the UK-based luxury carmaker to grow its shareholding. Aston Martin has required repeated capital injections in recent years and is now undergoing a turnaround strategy led by Chief Executive Officer Adrian Hallmark, a former Bentley boss. Aston Martin recently cut its 2025 profit goal and said it would be cutting staff this year. Lawrence Stroll, executive chairman Aston Martin on behalf of the Yew Tree Consortium, said: "I am pleased to clearly demonstrate my unwavering support and commitment to Aston Martin. Since 2020, my Yew Tree Consortium partners and I have invested around £600m into the company. This proposed investment further underscores my conviction in this extraordinary brand, and commitment to ensuring Aston Martin has the strongest possible platform for creating long-term value while reducing equity dilution via this premium subscription, which should greatly reassure shareholders, as I again increase my long-term ownership in the company. "Today's proposed investment, priced at a premium to the market price, and the forthcoming proposed sale of the Aston Martin F1 Team shares owned by Aston Martin at a premium to book value, is expected to generate significant additional liquidity for the group, of over £125m.' He added in his statement that he is highly confident about the company's medium-term prospects having 're-positioned the company as one of the most desirable ultra-luxury high performance automotive brands. The coming years will be pivotal in realising our vision and ambition'. "Aston Martin gets new funding from Stroll" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
