Aston Martin Raises $307 Million to Fund New Luxury CrossoversJing Cao
Aston Martin Lagonda Ltd. has secured an investment of 200 million pounds ($307 million) to fund the production of the DBX crossover, a break from the British luxury brand’s traditional low-slung sports cars.
The 102-year-old automaker issued 100 million pounds of preferred shares Wednesday, the Gaydon, U.K.-based company said Thursday in a statement. The remaining stock, which is already subscribed for, will be issued over the next 12 months. Investindustrial and Tejara Capital led the investment, the company said.
“The DBX concept has generated interest far beyond our expectations,” Chief Executive Officer Andy Palmer said in the statement. “This additional long-term funding will enable us to add extra model lines and broaden our presence in the luxury segment by the end of the decade.”
Aston Martin is among high-end brands breaking into the crossover market to respond to demand from wealthy consumers with little interest in sports cars. The company revealed the all-wheel-drive DBX concept at the Geneva International Motor Show last month, a two-door model designed to appeal to women and buyers from China and other emerging markets. This capital injection will fund the production of this model and development of others, Aston Martin said in the statement.
The carmaker reported 2014 revenue of 468 million pounds, according to the statement. Aston Martin, one of the few global luxury-auto brands that’s not part of a larger group, has said it plans to boost annual vehicle sales to 7,000 by 2021 from 4,000 now.