Aston Martin set to announce significant redundancies – claim

WARWICKSHIRE-based sports car manufacturer, Aston Martin could be on the verge of announcing significant job losses.

The BBC has said it understands the redundancies are to ensure the Gaydon company remains globally competitive.

If the claims turn out to be true then they come at an embarrassing time for the company, just as it will be thrust into the global spotlight with the imminent release of the latest James Bond film, Spectre, which features 007 in a special edition Aston Martin. (See video below)

There has been no official comment on the claims, which appear at odds with the company’s recent announcements about expansion and new products – even the possibility of a new factory.

The speculation is further evidence of the turbulent times faced by the region’s manufacturers.

Earlier this year, the company revealed it was to commit to a £200m funding programme for the production of its latest models – including a new crossover vehicle.

Aston Martin, which employs around 2,000 people, said the investment, which has the backing of its major shareholders, would drive the future of the company as it sought to develop its strategic business plan.

The additional capital investment came in the form of £200m of preference shares; £100m of which were issued in April with the remaining £100m – already subscribed for – being issued in the next 12 months.

The company said the investment in new luxury models was at the core of its strategic vision. Under the plan, the company is set to expand into the luxury GT crossover market with the introduction of a new vehicle based on the DBX concept shown at the Geneva and Shanghai motor shows in March.

Aston Martin CEO, Dr Andy Palmer said in the spring: “This additional long-term funding will enable us to add extra model lines and broaden our presence in the luxury market segment by the end of the decade. The DBX concept has generated interest far beyond our expectations. The additional investment will allow us to realise the DBX and other new luxury vehicles that will form the strongest and most diverse portfolio in our history.

“Our shareholders have shown their strong commitment and confidence in the management team to execute the strategic plan.”

At the same time as this, Aston Martin Holdings (UK) announced its results for the 12 months to December 31, 2014. They saw the company deliver full year revenues of £468m and adjusted EBITDA of £66m whilst simultaneously increasing its product development spend by 45%.

In August, the firm announced it was expanding the size of its apprenticeship scheme by 20% to support the firm’s ongoing commitment to growth.

The company currently employs 40 young apprentices across a wide variety of functions at its modern factory and global headquarters at Gaydon. It said this would now increase to 50.

In a statement announcing the expansion, Palmer said he was pleased to be able to offer work to more young people.

“The success of the Second Century plan for enhanced global growth of the Aston Martin brand and significant expansion of our exciting product portfolio is, clearly, fundamental to this business but, through initiatives such as this, it is also clearly bringing real, long-term, benefits to a number of young people,” he said.

If the job losses are confirmed then the company will be the latest high profile manufacturer in the region to announce cutbacks. Last month Staffordshire-based excavator manufacturer JCB revealed it was cutting 400 jobs because of declines in the emerging markets, although it pledged the bulk of the jobs would be non-manufacturing posts.

• To coincide with the release of Spectre, the company has released a behind-the-scenes video of its own, focusing on the Aston Martin DB10 used in the movie. Director Sam Mendes and actor Daniel Craig share their thoughts on the collaboration with Aston Martin, while stunt coordinator Gary Powell discusses his experience with the DB10 in Rome.[VIDEO: 852]