Report: Aston Martin plans to squeeze profits from using old technology

2012 Aston Martin Virage

While all of its competitors are rapidly advancing technologically, Aston Martin still plans on using the same platform for the upcoming model year as it has for the past eight.

Aston Martin is perceived by some to be at a disadvantage because its competition consists of divisions of huge corporation, such as Volkswagen. Datamonitor of London’s analyst Andrew Jackson notes that “It leaves the impression of a company stretching itself as far as it can. In the industry that they can operate in, with their competitors, they really need to be cutting edge,”.

Compared to the other brands, Aston Martin spends little on research and development. Dalmer AG puts out $7.1 billion to the $830 million Aston Martin gave up in a year. Rolls-Royce owner BMW AG is crafting its own carbon fiber, and is developing BMW and Mini brands further. By having multiple badges under one umbrella, it makes it easier for manufactures to manage costs. For example, the Audi R8 provides the platform for the Lamborghini Gallardo and the Bentley Continental Flying Spur and the GT share underpinnings with Volkswagen’s Phaeton.

Despite all the arguments against what Aston Martin is doing, they stand firmly behind their decision, and make it clear that they are all about profit. Ford engines and reused technology keep Aston Martins profit margin at around 20%, almost double of Mercedes-Benz.

CFO Hanno Kimer comments on the way Aston Martin is run, saying “We dont’ make the mistake of applying manufacturing techniques that are perfectly sensible for 500.000 a-year models to small-volume cars,”.

By: Alexandra Koken

Source: Automotive News