Breaking news
Formula 1
Aston Martin F1 plan still on track, despite cash warning
Aston Martin insists that its plan to return to Formula 1 with a 'works' team next year is on track, despite warnings that its parent road car company could run out of money within 12 months based on its previous spending plans.
Jonathan Noble
Edited: Mar 31, 2020, 10:38 AM
Copy link
Share on Viber
The luxury sportscar manufacturer has been hit hard by the coronavirus pandemic, and the company has had to take action to stabilise its financial situation following concerns about a lack of capital on a scheme outlined in a March prospectus after investor Lawrence Stroll came on board.
In a company statement issued on Monday night, it said: "Taking into account the proceeds of the capital raise, the Company is of the opinion that the Group does not have sufficient working capital to meet its requirements for 12 months following the publication of the Original Prospectus.
"This is due to the increased impact, since the Company published the First Supplementary Prospectus on 13 March, of COVID-19 and the ongoing and unquantifiable uncertainty it has created and continues to create."
In response to that, following a General Meeting on Monday, it has suggested that it may have to tap into £150 million of loans and other financial instruments that are available, to see it through the next 12 months.
Read Also:
- F1 team the "foundation" of Aston's new strategy - Stroll
- Racing Point details plans for "true integration" with Aston
The General Meeting also approved the injection of £536 million through a combination of £262 million investment and an equity raise – which includes a private placement of shares for £171 million for the Stroll-led Yew Tree Consortium.
Stroll, who is to become executive chairman of Aston Martin on April 20 following his buy-in of the company earlier this year, said his commitment was unwavering despite the coronavirus situation.
Speaking after the meeting, Stroll was clear that plans for his Racing Point team to become Aston Martin were still on track.
"I, and my co-investors in the consortium, continue to believe passionately in the future of Aston Martin Lagonda," he said.
"This is most clearly demonstrated by our investment of £262m which underpins the financial security of the company. This is a very significant capital raise of £536m - due to be made by my consortium and other shareholders at a very challenging time.
"This gives the necessary stability to reset the business for its long-term future. We have a clear plan to make this happen, including Aston Martin entering an F1 works team next season and I look forward to working with the Management team to deliver this programme."
Aston Martin has already had to take unprecedented action because of the coronavirus outbreak, and its situation has not been helped by the collapse of its share price from its stock market launch at £19 a share to recent lows of less than £1.50.
It has temporarily suspended all production at its Gaydon and St Athan facilities, with staff either now working from home or being furloughed.
The company is making use of all government aid and has rephased its operating costs to change spending patterns, such as on marketing, to stabilise its situation.
The Stroll push through his Yew Tree Consortium comes in the wake of ongoing speculation linking Mercedes motorsport boss Toto Wolff with the company – either through a formal role or private investment.
Wolff recently moved to deny reports that he was going to quit Mercedes and become CEO of Aston Martin to help Stroll, who has a good relationship with.
"The story is not true," said Wolff. "I am not becoming CEO of Aston Martin."
We want your opinion!
What would you like to see on Motorsport.com?
Take our 5 minute survey.
- The Motorsport.com Team
Read and post comments
Read also :
Share Or Save This Story
Copy link
Share on Viber
Previous article Formula 1 could extend 2020 factory shutdown
Next article How Schumacher and Todt transformed Ferrari
Top Comments
There are no comments at the moment. Would you like to write one?
View More & Comment
More from
Jonathan Noble
Brundle awarded OBE in King’s New Year’s honours
Formula 1
Formula 1
Brundle awarded OBE in King’s New Year’s honours
The new rules dilemma that will define the 2025 F1 season
Formula 1
Formula 1
The new rules dilemma that will define the 2025 F1 season
Verstappen issues Red Bull title warning in push for RB21 progress
Formula 1
Formula 1
Australian GP
Verstappen issues Red Bull title warning in push for RB21 progress
Latest news
Final NASCAR Cup points standings after 2026 Homestead finale
NASCAR Cup
NAS NASCAR Cup
Homestead-Miami
11 min
Final NASCAR Cup points standings after 2026 Homestead finale
Official race results: NASCAR Cup Homestead season finale
NASCAR Cup
NAS NASCAR Cup
Homestead-Miami
43 min
Official race results: NASCAR Cup Homestead season finale
Ryan Blaney wins Homestead NASCAR Cup finale as Kyle Larson claims 2026 title
NASCAR Cup
NAS NASCAR Cup
Homestead-Miami
57 min
Ryan Blaney wins Homestead NASCAR Cup finale as Kyle Larson claims 2026 title
Winners and losers from F1's chaotic Brazilian Grand Prix
Formula 1
F1 Formula 1
Sao Paulo GP
1 h
Winners and losers from F1's chaotic Brazilian Grand Prix
Feature
Discover prime content
How F1’s rules got to be so complex
Formula 1
By Pat Symonds
How F1’s rules got to be so complex
Subscribe and access Motorsport.com with your ad-blocker.
From Formula 1 to MotoGP we report straight from the paddock because we love our sport, just like you. In order to keep delivering our expert journalism, our website uses advertising. Still, we want to give you the opportunity to enjoy an ad-free and tracker-free website and to continue using your adblocker.
You have 2 options:
- Become a subscriber.
- Disable your adblocker.
Subscribe now Already subscribed? Sign in here
Already disabled your adblocker?
Reload page
Manage Alerts
Subscribe