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London: British luxury car manufacturer Aston Martin On Thursday, it said it plans to trim 500 cars as it tries to bring its cost base in line with lower sports car production levels.
A week after Aston Martin confirmed the job cuts, Mercedes-AMG CEO Tobias Merce would become chief executive on August 1, replacing Andy Palmer.
The 107-year-old firm stated that job losses were lower than originally planned production versions and that productivity had improved throughout the business. An employee and trade union consultation process will be started in the coming days.
Aston Martin, famous for being the car of choice for fictional secret agent James Bond, has seen its share price drop since floating in October 2018.
Last month it reported a deep decrease in the first quarter after a nearly one-third decline in sales due to the impact of the novel coronovirus outbreak.
“The measures announced today will correct the size of the organizational structure and bring the cost base in line with the level of sports car production consistent with restoring profitability,” it said.
It said its first sports utility vehicle (SUV), the DBX, which is critical to increasing volume and appealing to new buyers, including more women, stays on track for summer delivery and has a strong order book.
Aston Martin is reducing costs and removing non-significant expenditures in other areas, including contractor numbers, site footprint, marketing and travel.
It said the restructuring is expected to result in a total annual savings of around £ 38 million ($ 47.6 million). Restructuring costs are expected to be around £ 12 million.
Aston Martin shares have fallen 78% over the past year to close at 68.9 pence on Wednesday, valuing the business at £ 1.05 billion.
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