Aston Martin has pushed back the release of its first electric car once more. The company also announced job cuts affecting 170 employees, or 5% of its global workforce. The decision is part of its ongoing efforts to achieve profitability.
The luxury carmaker said its focus remains on plug-in hybrids, which use both a battery and a petrol engine. Its first fully electric vehicle will not arrive until the “latter part of this decade.” This marks another delay for the company’s electric ambitions.
Aston Martin had originally planned to showcase an electric model in the James Bond movie No Time to Die, filmed in 2019. However, the company scrapped the idea. In 2023, it postponed its first electric car to 2026. Now, the latest delay means customers will have to wait even longer.
Investors reacted negatively to the news. Aston Martin’s stock dropped 11% on Wednesday morning. The company also warned that petrol car sales would not see major growth this year.
Car manufacturers worldwide have slowed their electric vehicle plans. While demand for EVs remains strong, companies expected sales to grow even faster. Stellantis, the world’s fifth-largest carmaker, announced a strategy shift. It now plans to offer petrol, hybrid, and electric cars, giving customers more choices.
However, slowing sales are affecting all types of vehicles, not just electric models. Stellantis reported a loss of €127 million in the second half of 2024. A year earlier, it had made a profit of €7.7 billion. This financial downturn led to the resignation of its CEO, Carlos Tavares, in December. The company is now searching for a new leader.
Aston Martin’s leadership has also seen frequent changes. The company appointed Adrian Hallmark as CEO last year. He became the fifth person to hold the position in just five years. Hallmark, who previously led Bentley, is now tasked with making Aston Martin profitable.
He announced the decision to cut 170 jobs, calling it a “difficult but necessary action.” These cuts will save the company £25 million annually.
Aston Martin struggled with production issues at the end of the year. Supplier problems hurt its ability to deliver cars. The company’s losses increased by 20%, reaching £289 million in 2024. Sales dropped by 9%, with only 6,030 cars sold. This number fell short of expectations. In 2020, the company aimed to sell 10,000 cars per year. When it went public in 2018, it projected sales of 7,300. However, these targets have proven unrealistic.
To avoid overloading dealerships, Aston Martin decided to limit sales. Hallmark explained that the company wanted to “appropriately balance supply with demand.” This strategy prevents dealers from using heavy discounts to clear stock.
Aston Martin’s electric car delay continues to be a major challenge. The company now faces mounting pressure to turn its finances around. Investors and customers alike are watching closely to see how it navigates these hurdles.
Stay tuned for more updates on Aston Martin’s electric car journey and the British Muslim Network’s efforts to shape a more inclusive narrative.
