Feb 20 • 12:00 UTC 🇬🇧 UK Guardian

Aston Martin issues another profit warning and sells F1 naming rights for £50m

Aston Martin has issued a profit warning and sold its Formula One naming rights as it struggles to improve its financial situation, facing a projected annual loss of £184 million.

Aston Martin, the iconic British car manufacturer, has announced further struggles, warning that its profits for 2025 will fall significantly below market expectations, marking its fifth profit warning since September 2024. The company, which is predominantly owned by Canadian billionaire Lawrence Stroll, is now anticipated to report a loss of £184 million when it reveals its annual results next week. The prediction follows a disappointing performance in vehicle deliveries, with a nearly 10% decrease compared to 2024, attributed to the impact of US trade tariffs and issues with fulfilling orders for special edition models.

The decision to sell naming rights to its Formula One team for £50 million represents a strategic move by Aston Martin to generate additional revenue as it continues to confront significant financial challenges. The sale comes as the company grapples with increasing competition in the luxury automotive market and aims to rectify its current trajectory under Stroll, who has implemented various initiatives since taking over in 2020. Despite these efforts, the company’s stock has faced fluctuations, with shares falling 4% before partially recovering, underscoring investor concerns about its long-term viability.

As Aston Martin strives to stabilize its operations and restore financial health, the implications of these developments extend beyond just the company itself; they reflect the broader challenges facing the automotive industry, especially for luxury brands in a post-pandemic economic landscape. Continuous profit warnings and struggles with vehicle production not only diminish investor confidence but also raise questions about Aston Martin's future within an increasingly competitive sector, including its ambitious plans for Formula One branding and marketing.

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