Aston Martin comes out very poorly from its adventure with the electric car

Aston Martin has announced plans to cut 5% of its workforce, which amounts to approximately 200 jobs, due to tax losses that increased by 400% in the fourth quarter.

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The British company expects this measure to generate savings of around 25 million pounds (about 31 million dollars). These cuts come in the context of financial challenges, as Aston Martin’s debt has reached 1.16 billion pounds, representing a 43% increase since 2023.

The brand has not managed to meet annual expectations, with a 9% decline in its wholesale volumes last year. The situation in China has been particularly concerning, as wholesale sales fell by 49% compared to 2023.

Aston Martin blames China for layoffs

The CEO, Adrian Hallmark, blamed “disruptions in the industrial supply chain” and “macroeconomic weakness in China” for the company’s poor performance.

Aston Martin has also delayed the launch of its first fully electric vehicle, now scheduled for “the latter part of this decade,” after originally being set for this year.

In 2023, the British brand began a strategic collaboration with Lucid Motors to use its electric vehicle powertrain technology in future electric sports cars.

The situation of Aston Martin aligns with trends in the automotive industry, where other luxury manufacturers, such as Porsche, have also announced job cuts due to lower profits, especially in the Chinese market. In a competitive environment where electric vehicle (EV) manufacturers like BYD and Tesla dominate the market, it remains to be seen whether Aston Martin and other global automakers will be able to adapt.

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Rumors indicate that the company may focus more on its future plug-in hybrid model, the Valhalla, which will be launched at the end of this year.