F1 Billionaire Attempts to Rescue Aston Martin

 

It’s been no secret that iconic carmaker Aston Martin has been struggling.

After posting a $118 million loss in the first three quarters of 2019, the company warned its year-end profits would be down by half.

But the automaker announced Friday that it has a guardian angel. Lawrence Stroll, co-owner of the Racing Point Formula 1 team, will invest $239 million and take a 16.7% stake.

His consortium will add millions more by investing in a new issue of shares, effectively rescuing the company “from collapse.

The industry had high hopes for Aston Martin’s first-ever SUV, the DBX, which has also yielded healthy orders. Some of the proceeds from the investment will help the carmaker ramp up DBX production.

Shares in London jumped 30% on the news, but have a long way to go. Aston Martin has lost nearly $4 billion in value since its Oct. 2018 IPO.





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