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It will be of paramount importance that the first DBX cars are checked and rechecked for fit and finish and functionalty especially electricals, water test for leaks, rattle and squeak checks etc. If faults are found by the first customers word will quickly get round and the car will get a bad name before it's got off the ground, so to speak. This would majorly impact ongoing sales. I'm sure Moers will be into this in a big way.(at least I hope so !).
Pau1Oz, saw a lady driving her new Bentayga down at the High Street yesterday. Honestly don't think she would hesitate swapping that out for a DBX next time. Will be many more like that coming across onto the new order book imo. Wonder when Clarkson will be trying one out. Jtini
To see how AML could fit within Mercedes @Holly14 IMO look to the not too distant future. Tightening EU regs mean that Mercedes will struggle to make a V8 from 2022. Aston Martin by it's nature of being much lower volume, means that they are outside of some of the harshest regulations. AML soon to be run by AMG head Moers. Mercedes F1 engine head stepping down for 'a new project within the Mercedes family'. Interesting!
Hi Holly,
A search of google will show that Ferrari were at just over 23% profit in 2019 which is giving them an ebitda of circa 34%.
Ferrari’s model of supply to almost the demand is the model that Aston Martin are striving to copy. This will help the depreciation side of things at business level as well as providing customers with cars that won’t depreciate quickly.
50% of capital expenditure to H1 will have been on DBX production so the half year figures and cash flow will look atrocious. Obviously H2 will improve once they start to receive the revenue for the DBX which has cost them a lot through 2019/20.
Morning all. Not sure where you’re getting the 30% profit margins from but I will accept it at face value for now :-)
Its hard to get a comparison of similar companies as Porsche, Lamborghini, Rolls-Royce etc are all whole or partly owned by huge corporations (VW/Audi, BMW). That helps them massively with R&D costs, shared production platforms and more Importantly financing. I think the only way for this to work is with a buyout by Mercedes but it’s difficult to see how the brand fits in with their current range. Anyway, off for a couple of hours work.
Holly all of Ferrari operate around that level as well as some select others as Paul has stated. This ewill be the number as long as demand is there.
The Valkyrie indeed was a development car shared with RedBull to trickle down to the mid engine line.
The money has been spent and is part of the current debt. It has set the stage for the new line and as you will see will be groundbreaking.
The cost of building an Aston Martin would be little more than the cost of building a top of the range Ford, if all things were equal. The problem is that with low volumes, suppliers will demand much higher piece prices to make it worthwhile producing the components. When I worked for Ford, (admittedly back in the '80s) they were paying £8 for a complete exhaust system, and a similar price for a Blaupunkt car radio. Suppliers operate on low margins because the profit is there on the volumes. Not so in AM case. At the very least, AM should have good buyers to negotiate cheapest component prices. Even allowing for all this, the high sale price shoul allow a 30% margin or more. All IMHO.
Lamborghini profit margin I believe is over 30% generally @Holly14, and the Urus well over that. And very similar volumes and loyal passionate client base. Very comparable.
Urus is a VAG platform share with really helps that of course - but by a similar token the DBX has Mercedes running through it - drivetrain, much of the interior, air con.
Hi CC. You are right, the share price was £19 (valued at £4.5b) as opposed to 50p today. And please point me in the direction of any car produced on such low volume that has a 30% ebitda profit and I will happily research. I’m on here because I love the car, I’m just in need of someone to provide me with the numbers without the emotion that will convince me this is wise. And as for the two V’s. They are exactly the reason this company has gone bankrupt 7 times. The Bugatti Veyron cost
millions More to produce than what they sold for, but it was used as a R&D tool by VW for their mass production brands (VW and Audi) so they could stomach the loss. AM don’t have that!!
Appreciate your comments on Stroll’s racing ambitions and plans for shareholders. it’s great to actually have some reasoned opinion, both possibilities that would not be beneficial for us private investors.
Ive invested based on new product and brand opportunity, the recent share issue has somewhat made me think. Luckily my average is still below today’s price and I’ve not got life changing money invested. I had planned a 2 year investment but am considering exiting sooner for lower returns now.
Holly just a couple of things. The IPO wasn’t £19 billion as you stated and the DBX profit margin will be a minimum of 30% plus higher on options. Also they will produce at least 4,000 next year.
Apply those numbers then add all the specials and the core models and you will start to understand.
Also ask your kids about the Valkyrie and Valhalla in a years time and you will understand the direction the company is going.
Excellent Walters. Haven’t yet got the buying power to consider a DBX but I hope you get one and report back, warts and all. Truly a great car and agree that McLaren has a great name with the kids. Enjoy whatever you buy :-)
Very valid point, I’m mid 40’s and have bought Aston competitors new for quite some time. Ive never even considered an Aston and mocked friends that have, build quality has been an issue when compared to more volume brands like Porsche.
That said Im about to order a new Cayenne Coupe but am holding off until I view the DBX. Yes it’s got to be good to get that extra £30K out of me but as a loyal Porsche owner I am genuinely interested in Aston Martin for the first time in my life. There’s no doubt it’s a huge task to try and build desirability especially amongst the younger generation but ask a 20 something what they think of Mclarens, they drool over them, they are oblivious to the fact they are crap and guaranteed to breakdown.
Hi Walters.
In your head, do you think AM has the same branding power as Ferrari. I’m in my 50’s so it has a romance for me, but to my kids it’s just like Marks and Spencer. Dated. That’s why I would just look at the profit on the cars because the brand is still relevant but diminishing. I could be wrong but ask your kids.
The Automotive industry is a fickle place at the moment.
Tesla is worth more than Ford and has never had a profitable year in 17 years of trading. Turned over 24B last year, lost 862M but still it’s shares rise.
If the market decides Aston Martin is the next Ferrari things could quickly change, profitable or not.
Fantastic news that the production is going well. And the order books are being filled. But unfortunately none of those statements mean there is a profit. Businesses are built on pounds and pence, not order books and production. A friend and builder once told me, “don’t be a busy fool”.
I mentioned last week that I had seen a few DBX’s on the A465 on test.
Ive been recruiting at work recently, earlier this week an application landed in my inbox from someone currently working on the production line at St Athan. I just couldn’t pass the opportunity by to get some info on how things are progressing. Had a good chat with them earlier today, Customers cars are in production and have been for a few weeks. Some issues but nothing significant and only small numbers of vehicles with problems. All in track to achieve 1st deliveries as planned.
Hopefully over the coming weeks as the company announce to the market deliveries have began some sentiment will return.