Aston Martin takes $39.3M pre-tax loss
10-10-13, 06:46 PM
#16
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Fewer than 150 Cygnet superminis sold before Aston clipped its wings
The Aston Martin Cygnet wasn't exactly a hot seller during its two-year production run, which ended as of late last month. But despite British racing icon Sir Stirling Moss gifting one to his wife for her birthday, it seems that Britons didn't really care for it either: only 150 Cygnets were sold in Britain, Aston Martin's home country, Reuters reports.
Aston Martin hoped to sell 4,000 Cygnets per year, and things looked promising when demand was higher than supply – that is, until we realized the luxury automaker was taking too long to convert the Toyota iQ (Scion iQ in the US) donor cars on which Cygnets are based into luxurious city cars.
Here's to hoping Aston Martin finds another way to raise the average fuel economy of its vehicle lineup.
http://www.autoblog.com/2013/10/09/a...net-150-sales/
10-10-13, 07:47 PM
#17
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So how many millions of dollars did they waste having to do stupid crap like this just to satisfy equally stupid government fuel economy regs? Niche manufacturers that specialize in a particular type of vehicle ought to be allowed to specialize and not have to bother with completely pointless projects like these.
10-10-13, 08:24 PM
#18
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So how many millions of dollars did they waste having to do stupid crap like this just to satisfy equally stupid government fuel economy regs? Niche manufacturers that specialize in a particular type of vehicle ought to be allowed to specialize and not have to bother with completely pointless projects like these.
10-11-13, 07:44 AM
#19
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Actually its not the governments fault. You don't see Ferrari, Lambo, etc making Smart cars and iQ's like Aston did. Aston thought it was a great idea not just for better MPG across the lineup but b/c their marketing and research told them Aston buyers would like a small city car as well. Well clearly their research was wrong and seems there was production issues with the vehicle we were unaware about.
10-11-13, 09:42 AM
#20
Moderator: LFA, Clubhouse
Actually its not the governments fault. You don't see Ferrari, Lambo, etc making Smart cars and iQ's like Aston did. Aston thought it was a great idea not just for better MPG across the lineup but b/c their marketing and research told them Aston buyers would like a small city car as well. Well clearly their research was wrong and seems there was production issues with the vehicle we were unaware about.
10-11-13, 09:59 AM
#21
Here's my thinking. Rather than try to rebadge a Toyota/Scion iQ for Aston Martin to improve their CAFE, Aston Martin and Toyota should collaborate hybrid technology. Toyota being at the forefront of Hybrid Tech be it in Street or Racing Series chassis has all the tools it needs to develop a powertrain for supercar GT's. AM benefits from new powertrains and improved efficiency, while Toyota improves it's image of high quality vehicles throughout Toyota/Lexus even more. Pairing with something as lucrative as Aston Martin gives off pedigree and class. AM's design team could also provide design work for say a future Lexus 4-door coupe. I see potential but even I doubt the likelihood of it ever happening. Especially considering Toyota and BMW already paired for a sports car, and AM is supposedly getting AMG power in the next few years. Even though AM is losing right now, I think there are people/companies that still see AM's brand value and won't let it fail
10-12-13, 12:01 AM
#23
So how many millions of dollars did they waste having to do stupid crap like this just to satisfy equally stupid government fuel economy regs? Niche manufacturers that specialize in a particular type of vehicle ought to be allowed to specialize and not have to bother with completely pointless projects like these.
Now I'm going to be cynical as to why AM can't make any money. They keep rehashing the same basic car for 10 to 20 years. Now granted its a beautiful design when they start out, but people aren't going to keep buying the same car 10 or 20 years down the road
1. The DB series of the 50's/60's. The classic DB2 debuted in 1951. The DB3, DB4, DB5, DB6 were all styling evolution of that same car, with mechanical improvements along the way. While the styling was very contemporary in the 50's/early 60's, by 1970 with the DB6, the curves were very faux passe. GT cars had gone more angular and very radical, look at a 1970 Miura, Ferrari Daytona, Maserati Ghibi, Jensen Interceptor, Fiat Dino, etc, etc, etc
2. Aston Martin V8, 1969-1989 Once again, this car changed names a few different times, bigger engines over the years, new front and rear clips to make it more up to date, but at the end of the day AM was selling a 1960's car for Ferrari money in the 80's.
3. Aston Martin DB7. This debuted back in 1995, every AM since then has looked pretty much like this car. Even though the DB9 and V8 Vantage are much different and better cars from a mechanical/engineering standpoint, I can still buy a late 90's DB7 today for pretty cheap and those who don't know Astons would think its a new 2013 model.
10-14-13, 10:58 AM
#24
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Your examples prove my point! Ferrari is owned by Fiat and Lamborghini is owned by VW; they aren't independent companies. Ferrari gets to go under Fiat's fleetwide mumbers and Lamborghini gets to go under VW's fleetwide numbers for EU regulations, so they can be as inefficient as they want since they get averaged down by the massive numbers of other unrelated cars their parent companies sell. Meanwhile, Aston Martin gets no such break. As I said, this is big government stupidity at its finest. It panders to gigantic megacorps and only incentivizes small companies and small business to lose their independence.
10-18-13, 10:25 PM
#25
Aston Martin committed to V12 power, downplays hybrids
Aston Martin committed to V12 power, downplays hybrids
ston Martin will not be joining the performance hybrid club currently being championed by the likes of Ferrari, Porsche and McLaren. As evidence, Dr. Ulrich Bez, CEO of Aston Martin, has made some very pointed remarks about the supercar segment's move to hybridization, telling Australia's Drive, "We will not have a hybrid in next year or year after." Instead, the British brand will focus on aerodynamics, engine efficiency and reducing curb weight, all in a bid to boost performance without adding the cost or complexity of hybrid systems. But the strategy extends beyond those simple reasons, with Dr. Bez citing philosophical and practical issues with hybridization.
"I am a purist and I think a sports car should have as low weight as possible. It should be in as minimalistic as it can be and this does not work with hybridization," Bez tells the Australian website. As for his practical oppositions, Bez added, "I think it is great technology, but if you think about the biggest failures in cars these days it is electrical failures. And what we do is make more electrical systems and we believe it will be much better." The outspoken CEO finished by saying, "I think a pure sports car does not need this."
For the future of Aston Martin, Dr. Bez reiterated his support for its twelve-cylinder heritage, saying, "I do believe [the V12] is very dear to us." He adds, "If it comes to a luxury car with emotion, a V12 has something special. This will still be there within the next five to 10 years, but it does not mean it will be six liters - it can be five liters or a smaller one. It will improve with power and fuel consumption."
Dr. Bez's views are interesting, notably because Astons are generally underpowered relative to their competition - the Vanquish has 565 horsepower to the 740-horsepower Ferrari F12 and the Rapide S is outgunned by far more affordable competitors from BMW, Mercedes-Benz and Porsche. Not to be cynical, but we're guessing Bez's position is as much rooted in philosophy as it is in financial reality – Aston isn't exactly flush with cash these days, and developing a hybrid powertrain system sounds significantly costlier than sticking to its knitting. The question is, will the strategy work over the long haul? Have your say in Comments.
"I am a purist and I think a sports car should have as low weight as possible. It should be in as minimalistic as it can be and this does not work with hybridization," Bez tells the Australian website. As for his practical oppositions, Bez added, "I think it is great technology, but if you think about the biggest failures in cars these days it is electrical failures. And what we do is make more electrical systems and we believe it will be much better." The outspoken CEO finished by saying, "I think a pure sports car does not need this."
For the future of Aston Martin, Dr. Bez reiterated his support for its twelve-cylinder heritage, saying, "I do believe [the V12] is very dear to us." He adds, "If it comes to a luxury car with emotion, a V12 has something special. This will still be there within the next five to 10 years, but it does not mean it will be six liters - it can be five liters or a smaller one. It will improve with power and fuel consumption."
Dr. Bez's views are interesting, notably because Astons are generally underpowered relative to their competition - the Vanquish has 565 horsepower to the 740-horsepower Ferrari F12 and the Rapide S is outgunned by far more affordable competitors from BMW, Mercedes-Benz and Porsche. Not to be cynical, but we're guessing Bez's position is as much rooted in philosophy as it is in financial reality – Aston isn't exactly flush with cash these days, and developing a hybrid powertrain system sounds significantly costlier than sticking to its knitting. The question is, will the strategy work over the long haul? Have your say in Comments.
10-19-13, 10:46 AM
#26
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The market for people who can truly afford a $200,000+ car just flat out isn't large enough. I think it really just boils down to that.
And, people on the lower end of this affordability spectrum (let's say $10M-$30M in net worth - I'm making these numbers up but I think they're at least reasonable/plausible) are probably feeling a bit more cost conscious these days in light of last decade's stock market woes.
And, the people who can pretty much afford anything without restraint ($30M+) probably already own some form of supercar or another (or multiple supercars) and won't be in the market for another one for a while.
If you really wanted to stretch it I suppose there are people in the $5M-$10M range who could maybe kind of afford one, but that's pushing it. $200,000 on a car isn't insignificant in this net worth range, especially given uncertainties in the stock market.
And, people on the lower end of this affordability spectrum (let's say $10M-$30M in net worth - I'm making these numbers up but I think they're at least reasonable/plausible) are probably feeling a bit more cost conscious these days in light of last decade's stock market woes.
And, the people who can pretty much afford anything without restraint ($30M+) probably already own some form of supercar or another (or multiple supercars) and won't be in the market for another one for a while.
If you really wanted to stretch it I suppose there are people in the $5M-$10M range who could maybe kind of afford one, but that's pushing it. $200,000 on a car isn't insignificant in this net worth range, especially given uncertainties in the stock market.
10-19-13, 10:48 AM
#27
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Also this is kind of a subjective point but I really think Aston Martin doesn't look "exotic" enough sometimes. The prestige factor is there but mostly to car aficionados.
I think if the average person saw a well-polished black v8 R8 roll up next to a DBS or something, they might be tricked into believing the R8 costs more or is more exclusive.
But I don't know this is all speculation of course. Just throwing ideas out there.
I think if the average person saw a well-polished black v8 R8 roll up next to a DBS or something, they might be tricked into believing the R8 costs more or is more exclusive.
But I don't know this is all speculation of course. Just throwing ideas out there.
10-28-13, 03:03 PM
#28
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Earlier this month, we reported that Aston Martin has discontinued the Cygnet due to poor sales. However, it turns out there was more to it than that. Aston Martin CEO Ulrich Bez said Toyota is going to axe the iQ next year, so Aston Martin had no choice but to stop production of the Cygnet as well. The Cygnet is basically a rebadged and more luxurious version of the Toyota iQ.
“We stopped the Cygnet as Toyota itself will stop the iQ in 2014 and we don’t want to invest anymore,” Ulrich Bez was quoted as saying by Autocar. The executive said he had big plans with the Cygnet, but they never came to fruition because of various reasons.
“I wanted to bring it to the US, but there was no support for it. I wanted a supercharged engine, but there was also no support,” he said. Bez placed a part of the blame on Toyota for the lack of success of the Cygnet.
“We had a great start with Akio Toyoda, whom I still have a great relationship with. But Toyota didn’t follow up the support like it does with Tesla and its marketing of other products,” Bez revealed.
He added that Aston Martin did a good thing with the Cygnet after all and that it’s a great car, particularly in London. “It will be a cult car in the future and will be well looked after,” Bez said.
In response to the executive’s statements, Toyota said it has no plans to end iQ production and declined to comment any further.
“We stopped the Cygnet as Toyota itself will stop the iQ in 2014 and we don’t want to invest anymore,” Ulrich Bez was quoted as saying by Autocar. The executive said he had big plans with the Cygnet, but they never came to fruition because of various reasons.
“I wanted to bring it to the US, but there was no support for it. I wanted a supercharged engine, but there was also no support,” he said. Bez placed a part of the blame on Toyota for the lack of success of the Cygnet.
“We had a great start with Akio Toyoda, whom I still have a great relationship with. But Toyota didn’t follow up the support like it does with Tesla and its marketing of other products,” Bez revealed.
He added that Aston Martin did a good thing with the Cygnet after all and that it’s a great car, particularly in London. “It will be a cult car in the future and will be well looked after,” Bez said.
In response to the executive’s statements, Toyota said it has no plans to end iQ production and declined to comment any further.
10-28-13, 11:27 PM
#30
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And, the people who can pretty much afford anything without restraint ($30M+) probably already own some form of supercar or another (or multiple supercars) and won't be in the market for another one for a while.
If you really wanted to stretch it I suppose there are people in the $5M-$10M range who could maybe kind of afford one, but that's pushing it. $200,000 on a car isn't insignificant in this net worth range, especially given uncertainties in the stock market.
If you really wanted to stretch it I suppose there are people in the $5M-$10M range who could maybe kind of afford one, but that's pushing it. $200,000 on a car isn't insignificant in this net worth range, especially given uncertainties in the stock market.
I read an article a while back (probably mid-2000s?) from a magazine that collected data from FCA and claimed the average net wealth of some sample of FCA owners was 4.5 million. Granted, you're talking about buying a new $200k car, not just owning one (which would include buying a used one for a lot less), and I also have no idea of the statistical basis for that survey - e.g., whether it was self-reported or what - so caveats apply. Nevertheless, even inflation-adjusted, that's not much more than 5 million, and remember - that's an average. There are a lot of really rich people who are pushing that figure way up. The median will be well under that figure.
The last thing I would mention: My personal experience is that a lot of people who buy these types of cars are posers - the type of people who buy these things because they want other people to think they have a lot of money. We all know these things get repossessed. Heck, does anyone remember that F40 LM that got repossessed? I think you'd be surprised the number of people who make really bad decisions about how to spend their money.
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