Aston Martin expects to be profitable after 2016: CFO
By Costas Pitas
MILLBROOK, England (Reuters) - Loss-making British luxury sports carmaker Aston Martin expects to make a significant return to profitability after 2016, its finance officer said on Monday.
The 101-year company said it would start to see the benefits of a five-year 500 million pound ($843.57 million) investment program, having struggled to grow since the economic downturn.
"Once we finish the investment phase, we are very, very confident that it's going to take us to a very sustainable profitability," CFO Hanno Kirner said in an interview.
"We expect to return to significant profitability in the periods after 2016."
Aston Martin said in April it was investing in new electrical and electronic technology alongside a 2013 strategic partnership with Daimler (DAIGn.DE: Quote) through which the company benefits from shared engine development.
The Gaydon, Warwickshire-based company has teamed up with Daimler's high-performance Mercedes-AMG GmbH division to develop a new generation of bespoke V8 engines.
That move aimed to help it better compete with the likes of Volkswagen's (VOWG_p.DE: Quote) Bentley and Porsche units, as well as Jaguar Land Rover, which has achieved strong sales growth, especially in China, since 2008.
The carmaker, owned by Kuwaiti and Italian private equity groups, has had a turbulent 12 months after it scrapped its "Cygnet" model in October, which was an attempt to tap into the popularity of city cars. Continued...