Aston Martin has announced another delay in launching its first electric car, pushing the release to the latter part of this decade. The British luxury carmaker, renowned for its iconic James Bond appearances, also confirmed it will cut 170 jobs, representing 5% of its global workforce, as it continues its struggle to return to profitability.
Aston Martin’s Electric Vehicle Plans Delayed Again
Previously slated for release in 2026, Aston Martin’s much-anticipated electric vehicle (EV) has experienced multiple setbacks. Initially planned for a showcase during the filming of the Bond movie “No Time to Die” in 2019, the electric car model was cancelled, and its launch date subsequently postponed.
The company’s current focus will now shift primarily to plug-in hybrid vehicles, combining small batteries with petrol engines, as it sees hybrids as more viable in the short term.
Aston Martin Faces Financial Pressures, Cuts 170 Jobs
CEO Adrian Hallmark described the decision to eliminate 170 positions as a “difficult but necessary action,” aiming to reduce annual costs by £25 million. Aston Martin reported increased losses, totaling £289 million for 2024—a 20% rise from the previous year.
Supply-chain disruptions and declining global vehicle sales contributed significantly to the financial troubles, according to Hallmark. The company’s sales dropped 9% to just 6,030 vehicles last year, well below the ambitious target of 10,000 set in 2020 by the company’s major shareholder, US billionaire Lawrence Stroll.
Global Car Industry Faces Challenges Amid Slow EV Growth
Aston Martin isn’t alone in facing slower-than-expected adoption of electric vehicles. Carmakers worldwide, including automotive giant Stellantis, have begun reassessing their electric transition strategies. Stellantis recently announced it would allow customers more flexibility, providing options among petrol engines, hybrid, and fully electric models.
Stellantis itself reported significant financial woes, posting a loss of €127 million in the second half of 2024, a sharp reversal from a €7.7 billion profit a year earlier. The financial turmoil triggered CEO Carlos Tavares’s resignation late last year, with Stellantis now actively seeking his successor.
Aston Martin Aims for Stability Under New Leadership
Hallmark, Aston Martin’s fifth CEO in as many years and former head of Bentley, is tasked with stabilizing the company. He emphasized the need to “balance supply with demand” carefully to avoid oversupply, which previously forced dealers into offering steep discounts to move inventory.
As the company strives for profitability and stability, investors reacted negatively to the recent news, causing Aston Martin shares to drop by 11%.
