Aston Martin F1 works team plans in place despite cash crisis

Aston Martin

Aston Martin F1 works team plans in place despite cash crisis

Lawrence Stroll to become executive chairman of Aston Martin on April 20

Ian Parkes

Tuesday 31 March 2020 13:27

Make us your Google favorite

Lawrence Stroll is adamant his plans for Aston Martin to enter a works team in Formula 1 next season are continuing despite the apparent cash crisis surrounding the car company.

At the end of January, Racing Point owner Stroll led a consortium that took a majority 16.7% stake in Aston Martin.

Due to the ongoing coronavirus pandemic that has hit Aston Martin especially hard in the market, the deal has been reworked that has resulted in Stroll, who is due to become executive chairman on April 20, and his group taking a 25% stake.

Article continues under video

While Stroll's investment is keeping the wolves at bay, a company statement issued on Monday night outlined future concerns, declaring that the Aston Martin Lagonda Group Ltd "does not have sufficient working capital to meet its requirements for 12 months" following the publication of an original prospectus.

It added that it was due to the "increased impact...of Covid-19 and the ongoing and unquantifiable uncertainty it has created and continues to create".

The forced closures of its factories at Gaydon, and in particular, its new plant at St Athan to meet government guidelines in dealing with the coronavirus, has naturally halted production, notably of the DBX SUV that is being viewed as a make-or-break vehicle for the company.

Under Stroll's leadership, a rights issue of £536million has been raised, with there is an additional £150million being made available.

Despite the issues, Stroll has utter conviction in the project, and that Aston Martin will be on the F1 grid in 2021.

"I, and my co-investors in the consortium, continue to believe passionately in the future of Aston Martin Lagonda," said Stroll.

"This is most clearly demonstrated by our investment of £262m which underpins the financial security of the company. This is a very significant capital raise of £536m - due to be made by my consortium and other shareholders at a very challenging time.

"This gives the necessary stability to reset the business for its long-term future. We have a clear plan to make this happen, including Aston Martin entering an F1 works team next season and I look forward to working with the management team to deliver this programme."