I am looking at the AML story through the glasses of a manager and would like to share some hypothesises:
– Up to now, the new directors and management are following a very ambitious change program and are very close to achieving their goals.
– On the way they didn’t only make friends. When you take over a close to bankrupt company and want to turn it around within three years, there will be a lot of disappointed / angry former employees and partners.
– The most interesting phase will be end of 2022 / first half 2023, when it will come clear which new models will appear and how they will be accepted by the market. The DBX, from my personal perspective, is an astonishing success.
– Speculation: There might just be a fight in the background going on to keep the stock price low. Some big players are actually holding short positions.
Personally speaking, I think Stroll’s way to restructure AML is a “no bullshit” approach. That leaves some marks but might be effective in the end.
We will know more in roughly a year, I guess!
Great header photo!
Final 2021 results will be interesting.
I am interested in that DBX derivative that they announced, something as simple as another engine option or will they finally announce something bigger to try to save the DBX project?
About Moers and several senior leaders leaving AM after his appointment: his style of leadership is only one part of that story in my opinion. The one hiring Moers is responsible for that as well.
Also: nothing on the fact that Stroll, de Picciotto and Moers bought AM stocks when price hit a certain low point?
I feel for Mr Moers. Finally we have a CEO with the aggression and the understanding and vision needed to save Aston Martin. I’m right behind him on destocking the dealers, increasing option spend, pushing up average sale prices and creating more derivatives of each model: all things that other manufacturers discovered years ago but wafted past Andy Palmer’s leather-lined dream world. He also understands the need for bought in powertrain (and electrification) technologies, potentially expanding out to other areas like ADAS and E/E architectures and he has a world-class vision for digitalisation of the customer relationship journey. But – to deliver this strategy he has to fight three battles. First, there are tricky elements in the Palmer-era leadership team. Maybe the source of Autocar’s briefing against Mr Moers? And where did the Bloomberg article come from? It’s right that they should be put under pressure to perform or leave. I’ve worked with Aston Martin and, while many of their people are brilliant, I wouldn’t have invested in the business if I thought a few of the less brilliant would be allowed to continue drifting along living on hope and debt. Second, the company he took over was in a real mess financially and in product strategy. The debt is staggering and the product just doesn’t cut it. Solving the latter in the face of the former is a big challenge that takes time. Then third, to add the icing on his layer cake of challenges, he has Mr Stroll looking down on him. I understand that the F1 agreement was part of the deal to get Stroll’s money and support, but it cuts off Aston’s ability to monetise it’s brand in F1 and it comes with Mr Stroll’s insistence that AM changes course from aspirational Sports / GT, the goal of those who have been through the 911 ladder and want something more exclusive (a market Aston Martin should and could own), to facing head-to-head with Ferrari in one of the most hotly contested high-end vehicle sectors. I like new Aston, it has some top rate people and oudles of potential. I’ve never met Mr Moers but I like what I know of him. How successful is AMG compared with Ford of Europe? Let’s hope the rumours are false. If the share price tumbles further I will top up: but only if Mr Moers has the full support of Mr Stroll and it feels like he is staying.
Aston Martin would be worth more if it turned itself into an NFT. I think people buy Ferraris, etc. because they are performance machines AND they are beautiful. Aston Martin is 0 for 2 these days. The Valkyrie’s windshield wiper makes it look like the engine had an uncontrollable erection. The DBX looks like an outdated Genesis SUV, and congratulations Aston Martin for being ranked 18 by Car and Driver in the Luxury SUV segment; btw, a Genesis was ranked #1. Vantage, DBS, DB11? Yawn–especially when you see what you can get for the same money (or less) from more reliable manufacturers that you know will be there to service it in a decade (thank you Ferrari, Porsche, even Lamborghini if you like your car being designed by a protractor). Save your money and buy Aston Martins on Autotrader after they’ve massively depreciated, and by then you’ll also know if you can still get parts for it.
I too love the Aston Martins of yesterday, but Aston Martin is the Blackberry of high-end cars. The brand is worth something, and it’s time to partner with the Bored Ape Yacht Club NFT folks to maximize that value.
Fantastic summation of recent Aston Martin stories, and it’s something that I haven’t seen other publications bring together either.
The warning bell for me with Valkyrie “shipped” statement was how we’ve not seen a single one running. If a customer had one it would be big news, yet nothing. Not a peep. I never considered that it would still be held by Aston Martin, but rather to a forgiving new owner who would take it in as a “Garage Queen” and await firmware updates which would enable the car to function, whenever that may be.
One thing we have to appreciate about Stroll / Moers is Palmer’s plan. Because neither of them have really deviated from that plan, other than pushing Aston further towards being a Mercedes sub-brand. The only material change really has been the adoption of more Mercedes power trains.
Let’s think of that – Mercedes power trains in a thoroughbred Aston Martin? Some would say why not? Some are horrified by the idea. I can see how with engine technology increasingly becoming difficult to design to the latest emission targets why a crate engine is desirable. But then you have Stroll wanting Aston “to become the British Ferrari”. Can you imagine a Ferrari using a VW engine? Or a Renault? Or a Ford? And even when Aston got a block from Jaguar you couldn’t get the car serviced at Jaguar (i6 DB7). Or the V8 and V12 derived from Jaguar and Ford engines. The knowledge from both were used to create a bespoke Aston engine – and there’s no shame in that at all. But a crate engine you are lumbered with the characteristics of the source, and Astons sound more like AMGs now.
Moers has apparently taken some of the costs out of producing Astons, and part of Palmer’s plan to duplicate functions at two sites never sat well with me (except paint – don’t have bodies in white going between facilities, paint them as soon as possible). His time at Aston hasn’t been a complete waste.
But Moers failed to do the one thing which would save Aston that Palmer failed to do – Sack Marek Reichman. No matter how you look at the technical side, or the production side, if the cars aren’t selling sufficiently you have to look at the design. Moers and Palmer failed, both of them, to deal with the problem – Reichman designs don’t sell.
If Moers had rid Aston of Reichman one day one, as he should have done preferably before lunch, we’d be seeing refreshes of the DB11/s and Vantage right now which are their core products. Engineering is good on them, and refresh to fix the design disasters of Reichman would help both. Although the Vantage needs a bumper to bumper refresh. Then they could do a refresh for the DBX and perhaps it would get the sales it needs.
Updates on the CFO, Aston has now employed Doug Lafferty who has been working for Vivo Energy, an African fuel retailer. His automotive experience come from previously working for Williams F1. Before that he worked for a cancer and COPD causing company creating products which ended up killing my mum just before last Christmas.
https://europe.autonews.com/move/aston-martin-names-ex-williams-f1-executive-finance-chief
https://www.driven.co.nz/news/watch-aston-martin-valkyrie-takes-to-the-road-just-listen-to-that-v12/
Valkyrie on the road in Munich..?
@SSO when I re-watched it I found the sound a bit too good for spotters. So the same thought came in my head, probably AM trying to hype things up. But why? Could it be a development mule made road legal? That would be something.. maybe a client convinced AM to do that.. But the interior would be a mess..
Delivery delays are not uncommon at the moment, look at McLaren with the Artura. It’s sensible not to rush product out and this appears to be purely a timing / cut-off issue more than anything else.
Well they are in a fight with the company that is actually building them so that does not help 🙂
Very true. The difference here is McLaren proactively announced they were delaying deliveries. In Aston’s case, Tobias Moers announced they would be delivering a number of Valkyries prior to the end of the year, and then failed to do so.
Very true, but you can’t bank a margin
I am looking at the AML story through the glasses of a manager and would like to share some hypothesises:
– Up to now, the new directors and management are following a very ambitious change program and are very close to achieving their goals.
– On the way they didn’t only make friends. When you take over a close to bankrupt company and want to turn it around within three years, there will be a lot of disappointed / angry former employees and partners.
– The most interesting phase will be end of 2022 / first half 2023, when it will come clear which new models will appear and how they will be accepted by the market. The DBX, from my personal perspective, is an astonishing success.
– Speculation: There might just be a fight in the background going on to keep the stock price low. Some big players are actually holding short positions.
Personally speaking, I think Stroll’s way to restructure AML is a “no bullshit” approach. That leaves some marks but might be effective in the end.
We will know more in roughly a year, I guess!
Great header photo!
Final 2021 results will be interesting.
I am interested in that DBX derivative that they announced, something as simple as another engine option or will they finally announce something bigger to try to save the DBX project?
About Moers and several senior leaders leaving AM after his appointment: his style of leadership is only one part of that story in my opinion. The one hiring Moers is responsible for that as well.
Also: nothing on the fact that Stroll, de Picciotto and Moers bought AM stocks when price hit a certain low point?
No one has mentioned how Moers leaving will affect on AMs relationship with Mercedes. What a mess to sort out here. Really needs to let the F1 thing go and focus on keeping things afloat.
I feel for Mr Moers. Finally we have a CEO with the aggression and the understanding and vision needed to save Aston Martin. I’m right behind him on destocking the dealers, increasing option spend, pushing up average sale prices and creating more derivatives of each model: all things that other manufacturers discovered years ago but wafted past Andy Palmer’s leather-lined dream world. He also understands the need for bought in powertrain (and electrification) technologies, potentially expanding out to other areas like ADAS and E/E architectures and he has a world-class vision for digitalisation of the customer relationship journey. But – to deliver this strategy he has to fight three battles. First, there are tricky elements in the Palmer-era leadership team. Maybe the source of Autocar’s briefing against Mr Moers? And where did the Bloomberg article come from? It’s right that they should be put under pressure to perform or leave. I’ve worked with Aston Martin and, while many of their people are brilliant, I wouldn’t have invested in the business if I thought a few of the less brilliant would be allowed to continue drifting along living on hope and debt. Second, the company he took over was in a real mess financially and in product strategy. The debt is staggering and the product just doesn’t cut it. Solving the latter in the face of the former is a big challenge that takes time. Then third, to add the icing on his layer cake of challenges, he has Mr Stroll looking down on him. I understand that the F1 agreement was part of the deal to get Stroll’s money and support, but it cuts off Aston’s ability to monetise it’s brand in F1 and it comes with Mr Stroll’s insistence that AM changes course from aspirational Sports / GT, the goal of those who have been through the 911 ladder and want something more exclusive (a market Aston Martin should and could own), to facing head-to-head with Ferrari in one of the most hotly contested high-end vehicle sectors. I like new Aston, it has some top rate people and oudles of potential. I’ve never met Mr Moers but I like what I know of him. How successful is AMG compared with Ford of Europe? Let’s hope the rumours are false. If the share price tumbles further I will top up: but only if Mr Moers has the full support of Mr Stroll and it feels like he is staying.
Aston Martin would be worth more if it turned itself into an NFT. I think people buy Ferraris, etc. because they are performance machines AND they are beautiful. Aston Martin is 0 for 2 these days. The Valkyrie’s windshield wiper makes it look like the engine had an uncontrollable erection. The DBX looks like an outdated Genesis SUV, and congratulations Aston Martin for being ranked 18 by Car and Driver in the Luxury SUV segment; btw, a Genesis was ranked #1. Vantage, DBS, DB11? Yawn–especially when you see what you can get for the same money (or less) from more reliable manufacturers that you know will be there to service it in a decade (thank you Ferrari, Porsche, even Lamborghini if you like your car being designed by a protractor). Save your money and buy Aston Martins on Autotrader after they’ve massively depreciated, and by then you’ll also know if you can still get parts for it.
I too love the Aston Martins of yesterday, but Aston Martin is the Blackberry of high-end cars. The brand is worth something, and it’s time to partner with the Bored Ape Yacht Club NFT folks to maximize that value.
Fantastic summation of recent Aston Martin stories, and it’s something that I haven’t seen other publications bring together either.
The warning bell for me with Valkyrie “shipped” statement was how we’ve not seen a single one running. If a customer had one it would be big news, yet nothing. Not a peep. I never considered that it would still be held by Aston Martin, but rather to a forgiving new owner who would take it in as a “Garage Queen” and await firmware updates which would enable the car to function, whenever that may be.
One thing we have to appreciate about Stroll / Moers is Palmer’s plan. Because neither of them have really deviated from that plan, other than pushing Aston further towards being a Mercedes sub-brand. The only material change really has been the adoption of more Mercedes power trains.
Let’s think of that – Mercedes power trains in a thoroughbred Aston Martin? Some would say why not? Some are horrified by the idea. I can see how with engine technology increasingly becoming difficult to design to the latest emission targets why a crate engine is desirable. But then you have Stroll wanting Aston “to become the British Ferrari”. Can you imagine a Ferrari using a VW engine? Or a Renault? Or a Ford? And even when Aston got a block from Jaguar you couldn’t get the car serviced at Jaguar (i6 DB7). Or the V8 and V12 derived from Jaguar and Ford engines. The knowledge from both were used to create a bespoke Aston engine – and there’s no shame in that at all. But a crate engine you are lumbered with the characteristics of the source, and Astons sound more like AMGs now.
Moers has apparently taken some of the costs out of producing Astons, and part of Palmer’s plan to duplicate functions at two sites never sat well with me (except paint – don’t have bodies in white going between facilities, paint them as soon as possible). His time at Aston hasn’t been a complete waste.
But Moers failed to do the one thing which would save Aston that Palmer failed to do – Sack Marek Reichman. No matter how you look at the technical side, or the production side, if the cars aren’t selling sufficiently you have to look at the design. Moers and Palmer failed, both of them, to deal with the problem – Reichman designs don’t sell.
If Moers had rid Aston of Reichman one day one, as he should have done preferably before lunch, we’d be seeing refreshes of the DB11/s and Vantage right now which are their core products. Engineering is good on them, and refresh to fix the design disasters of Reichman would help both. Although the Vantage needs a bumper to bumper refresh. Then they could do a refresh for the DBX and perhaps it would get the sales it needs.
Updates on the CFO, Aston has now employed Doug Lafferty who has been working for Vivo Energy, an African fuel retailer. His automotive experience come from previously working for Williams F1. Before that he worked for a cancer and COPD causing company creating products which ended up killing my mum just before last Christmas.
https://europe.autonews.com/move/aston-martin-names-ex-williams-f1-executive-finance-chief
https://www.driven.co.nz/news/watch-aston-martin-valkyrie-takes-to-the-road-just-listen-to-that-v12/
Valkyrie on the road in Munich..?
@SSO when I re-watched it I found the sound a bit too good for spotters. So the same thought came in my head, probably AM trying to hype things up. But why? Could it be a development mule made road legal? That would be something.. maybe a client convinced AM to do that.. But the interior would be a mess..
@SSO : also, I have never seen a spotter do this good a job of masking the plates. Any Germans here that know how to find the registry? Here in the Netherlands you can find all registrations including the price that is paid.
[…] we last left the Valkyrie (Aston Martin Annouces Earnings Miss), Aston Martin had claimed on Jan 7, […]
[…] This rather neatly ignores the 2021 earnings warning Aston Martin issued on Jan 7th (see: Earnings Warning). While the 2021 Earnings Presentation, Press Release, and Analyst Call all tried to present both […]