Aston Martin owner and chairman Lawrence Stroll has lauded a new deal with the Saudi Public Investment Fund (PIF) that will help raise $400 million for the team.
Stroll took over a team in turmoil in 2018 when he bought the Force India side from Vijay Mallya, and he has since been hard at work trying to clear the British side’s debt.
The Aston Martin rebrand last year helped with that, as did Stroll’s Yew Tree Investment Group along with Mercedes-Benz.
Roughly $380 million will be raised on top of all of that through a public share issue, raising just over $780 million in equity capital.
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Aston Martin are planning to hit 10,000 annual road car sales to boost revenue, although they have sold 225 units less in the first two quarters of this year than they did at the same point in 2021.
The investment coming into the team is going to be massive for the brand and for the stakeholders involved, according to Stroll.
“[This] announcement marks the latest success in the evolution of Aston Martin, the restoration of the business and balance sheet we inherited, and the acceleration of our long-term growth potential,” he said.
“Overall, this is a game-changing event for Aston Martin, supporting the delivery of our strategic plans and accelerating our long-term growth potential.
It transforms our balance sheet, liquidity and cash flow profile and provides greater clarity on our pathway to become sustainably free cash flow positive and create significant shareholder value.
“Since I became executive chairman in 2020, we have made significant progress on our journey to become the world’s most desirable, ultra-luxury British performance brand.
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“We started by fixing the core fundamentals of the company, successfully de-stocking the dealer network to rebalance supply to demand, optimising inventory levels aligned for an ultra-luxury business, and now benefit from the strongest order book we have seen in many years.
“We also signed a strategic co-operation agreement with Mercedes-Benz and have developed a breath-taking pipeline of products, starting with the DBX707 and V12 Vantage, all of which are aligned with our 40%+ contribution margin targets – a significant increase from the past.”
The Canadian believes that the Formula 1 project, with which Aston Martin became involved last year, has played a major role in the development of the company.
“Aston Martin’s return to the pinnacle of motorsport with the Aston Martin Aramco Cognizant Formula One team, has also ushered in a new era for our iconic British brand,” added Stroll.
“Our focus on building brand equity and unleashing the potential of Aston Martin is already delivering growing demand from a new generation of customers, with more than 60% new to the brand in 2021.”
Aston Martin are currently ninth in the Constructors’ Standings having been passed by Haas following a nightmare weekend for Lance Stroll and Sebastian Vettel in Austria.