Aston Martin is in trouble. AMG to the rescue.
One of the world’s most iconic sportscar brands is facing a crisis.
After years of unstable profitability and a collapsing share price, Aston Martin has indicated that a management change is at hand.
The company has said that it will comment on the exact management changes, at an ‘appropriate time’, but there is no disguising the sense of dramatic action waiting to be taken. A decision was made on the 25th May 2020.
Aston Martin’s boss, Andy Palmer, is believed to be an issue for the consortium of majority shareholders, which include Canadian billionaire (and Racing Point F1 owner), Lawrence Stroll. Under Palmer’s management, Aston Martin’s has suffered a crushing 90% reduction in its listed share price value and as a result, the decision has been made to replace him. Palmer has been at the head of Aston Martin since 2014.
Where Aston Martin’s immediate crisis management could become interesting, is AMG. The German Mercedes-Benz subsidiary already supplies Aston Martin with engines (and has a 10% stake in the business) and it is there that we find Palmer's replacement, Tobias Moers (head of AMG). Moers will take Palmer’s job at Aston Martin effective of 1 August 2020.
It will not be the first time Aston Martin is run by a German. The company’s modern revival happened under the management of Ulrich Bez and it is thought that someone with a proven track record, such as Moers, could save Aston Martin.
There is no questioning the credentials of Moers, who has achieved enormous success in terms of technological development and profitability at AMG. Entities and individuals who have invested in Aston Martin will be desperate to see a reversal in fortunes for the storied British brand, which has suffered bitterly with cash flow and the challenging of sustaining its R&D for future models, during the global health crisis.
Before becoming the boss of Aston Martin, Andy Palmer had spent most of his career at Nissan, in its truck and bakkie division. Palmer indicated that he wished for Aston Martin to develop its own V6 hybrid engine, reducing dependency on AMG, but this was unlikely under the realities of Aston’s limited budget.
Moers has a much truer background to manage Aston Martin than Palmer ever had. The German joined AMG as a junior engineer in 1994 and has been evolving with the powerful performance car brand, even since.
Aston Martin is expected to confirm the appointments soon, despite rubbishing most claims as mere speculation.