Dave Posted March 13, 2007 Report Share Posted March 13, 2007 Ok, i think we all now know that AM has been sold. My concern is that how on earth is the new company going to have the resources and infrastructure to develop new models? Audi, BMW and the rest spend millions and millions of pounds each year in development. How on earth are Aston Martin going to do this when the current models age? I feel this is the beginning of the end, much like when Rover was sold. Link to comment Share on other sites More sharing options...
Rachel Posted March 13, 2007 Report Share Posted March 13, 2007 I think you might be wrong there. Go have a peek at what Prodrive get up to, it's pretty damned impressive, and now that Mr Richards is backed by a financial institution run by chaps whose first name is "Sheik" I don't think finances will be a problem. But then, I AM blonde. Link to comment Share on other sites More sharing options...
Tizzy Posted March 13, 2007 Report Share Posted March 13, 2007 It better not be - I haven't managed to get one yet (and I'm going to need a few more years at this rate!) Link to comment Share on other sites More sharing options...
Thorburn Posted March 13, 2007 Report Share Posted March 13, 2007 Considering they've been able to stump up near half a billion already it seems they aren't cash light. Whats more, unlike Rover, its a profitable business and one with a mainly positive image. I'd imagine Prodrive will be fairly involved in development, perhaps in the same way you can have the AMV8 with Prodrive enhancements or the PPP packs on Impreza's while the main development stays within the traditional Aston Martin design studios? Link to comment Share on other sites More sharing options...
Se5aScott Posted March 13, 2007 Report Share Posted March 13, 2007 I wouldn't worry about AM too much, Ford and Jaguar are the ones in trouble Link to comment Share on other sites More sharing options...
cruiser647 Posted March 13, 2007 Report Share Posted March 13, 2007 [ QUOTE ] Ok, i think we all now know that AM has been sold. My concern is that how on earth is the new company going to have the resources and infrastructure to develop new models? Audi, BMW and the rest spend millions and millions of pounds each year in development. How on earth are Aston Martin going to do this when the current models age? I feel this is the beginning of the end, much like when Rover was sold. [/ QUOTE ] Yep - I agree. When the current models reach end of life...........trouble will begin. The market for that sort of car moves on very quickly. You can't rest at all. Any mistakes will be costly. Link to comment Share on other sites More sharing options...
Dave Posted March 13, 2007 Author Report Share Posted March 13, 2007 I've no doubt the Mr Richards has shed fulls of money, but is he prepared to piss loads of it up against the wall developing new engines and systems for what is, one of the most advanced brands in the world. All i can see them doing is stripping the assets and slowing closing down the brand. They will eventually become a TVR type outfit. Link to comment Share on other sites More sharing options...
Thorburn Posted March 13, 2007 Report Share Posted March 13, 2007 [ QUOTE ] I've no doubt the Mr Richards has shed fulls of money, but is he prepared to piss loads of it up against the wall developing new engines and systems for what is, one of the most advanced brands in the world. [/ QUOTE ] At present I believe Ford are still doing the engines and are retaining a £40 million investment. Why would you spend that much money to kill a brand? Link to comment Share on other sites More sharing options...
Dave Posted March 13, 2007 Author Report Share Posted March 13, 2007 [ QUOTE ] Why would you spend that much money to kill a brand? [/ QUOTE ] I don't really understand the economics, but you can asset strip companies and come out it very wealthy. Link to comment Share on other sites More sharing options...
ashleyadam Posted March 13, 2007 Report Share Posted March 13, 2007 [ QUOTE ] [ QUOTE ] Why would you spend that much money to kill a brand? [/ QUOTE ] I don't really understand the economics, but you can asset strip companies and come out it very wealthy. [/ QUOTE ] To right Dave extremely lucrative business! Link to comment Share on other sites More sharing options...
D1MAC Posted March 13, 2007 Report Share Posted March 13, 2007 I'll join the dissenters to this and say same way as it always has. Aston wouldn't have spent the hundreds of millions on the current range (else it wouldn't be profitable, wouldn't be sold and Ford would be even more up the creek - if that is possible). Some development will be done by the existing AM engineering base (possibly a bit less now as I would imagine that Ford lent them some)and some will be done by established independent specialists such as Prodrive (obviously), Ricardo et al. Possibly the biggest spend is on the non driveline but vitally important things such as new technologies, safety equipment and other bits & bobs that are generally perceived as not being expensive but which actually cost a bomb to develop. I would imagine that given Ford still owns a stake it will supply these items already engineered - price might be a bit higher but the facility will be there. There is also the fact that range of requirements for something like an Aston are rather different to those for a Rover, plus they can charge an awful lot more. Also Rover was staffed by idiots in the main, not Bez, Richards et al. Having said all that (and allowing for the fact that DR is an ex beanie and is backed by hard nosed financiers or possibly fairly deep pockets), I wouldn't put the old chap on the block and say AM is guaranteed to survive. I can't help but think that the current reliability issues are going to have a major negative impact on the plans to increase production to pay for that takeover Link to comment Share on other sites More sharing options...
techieboy Posted March 13, 2007 Report Share Posted March 13, 2007 From what I saw yesterday they're planning on making the AM brand into a luxury lifestyle brand. Whole ranges of non-car products to challenge Louis Vuitton, Mulberry, et al. Good luck to 'em but I can't see that giving enough money to be able to plough £1billion pounds into developing a whole new DB10 range. Ford have already paid for the development of the Rapide and the DBS. Link to comment Share on other sites More sharing options...
D1MAC Posted March 13, 2007 Report Share Posted March 13, 2007 [ QUOTE ] I've no doubt the Mr Richards has shed fulls of money, but is he prepared to piss loads of it up against the wall developing new engines and systems for what is, one of the most advanced brands in the world. All i can see them doing is stripping the assets and slowing closing down the brand. They will eventually become a TVR type outfit. [/ QUOTE ] I don't think DR is in that level of the wealth zone but I imagine he's a pretty smart cookie (backed up by some other pretty smart people). If Ferarri can do it with success (based on a lower production number but some help from Fiat) then why not Aston with Ford help? - they can both get away with charging high prices to cover their development, which I suspect isn't anything like £1 billion per car range. The other thing I would be faerful of regarding Aston's future is a changing economic tide which would blow the numbers to smithereens Link to comment Share on other sites More sharing options...
Ari Posted March 13, 2007 Report Share Posted March 13, 2007 [ QUOTE ] The other thing I would be faerful of regarding Aston's future is a changing economic tide which would blow the numbers to smithereens [/ QUOTE ] There are plenty of mega rich out there worldwide, and their numbers are swelling all the time. I doubt that'll ever be a problem provided they can keep the cars at the forefront of desirability for such people. Link to comment Share on other sites More sharing options...
D1MAC Posted March 13, 2007 Report Share Posted March 13, 2007 [ QUOTE ] [ QUOTE ] The other thing I would be faerful of regarding Aston's future is a changing economic tide which would blow the numbers to smithereens [/ QUOTE ] There are plenty of mega rich out there worldwide, and their numbers are swelling all the time. I doubt that'll ever be a problem provided they can keep the cars at the forefront of desirability for such people. [/ QUOTE ] I do agree and I'm sure that someone being worth £40m instead of £50m isn't going to think for a single second about not buying a new one. Where there might be an issues in with the fair proportion (definitely 50% plus of customer base) that are currently in the £75k - £250k, or maybe a bit more, salary bracket, plus the guys/gals who own their own smaller companies (the only Aston owner I've met was in the latter bracket) - i.e. the V8 and possibly some DB9 owners. A downturn of any note would hit these current & potential owners a fair bit harder and I would imagine that they would either put off a purchase or go for something altogether a bit cheaper (M3/S5 kind of thing). While that might only be a shortish term thing, new Aston might not be able to ride the storm. Link to comment Share on other sites More sharing options...
Ari Posted March 13, 2007 Report Share Posted March 13, 2007 Bear in mind though, that Aston sells to a worldwide market. So when maybe the UK is doing badly, China might be strong, or the US, or whatever. I understand what you're saying, but I don't think your local Midlands ball bearing manufacturing company owner not buying an Aston cos business is bad will bring them to their knees. Link to comment Share on other sites More sharing options...
Dave Posted March 13, 2007 Author Report Share Posted March 13, 2007 I do agree, but if Aston martin cannot keep their position at the top of the market, then they will loose custom. people buy their cars because of clever marketing and because they are supposed to be hand built master pieces of automotive beauty. they combine beauty and technology in equal measure... if either of these attributes suffer, then the wealthy will leave for the likes of BMW M or Merc AMG, not to mention the Ferrari's of this world. Link to comment Share on other sites More sharing options...
Thorburn Posted March 13, 2007 Report Share Posted March 13, 2007 Astons sell because they are gorgeous, lets face it the Ferrari 575 was better than the Vanquish, and the DB7 wasn't anything special, but they both sold because they looked stunning. Link to comment Share on other sites More sharing options...
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