Aston Martin has secured a £550m loan deal to shore up its finances, as the luxury carmaker struggles under the weight of US tariffs, weak Chinese demand and a net loss that ballooned by half to £493.2m last year. The loans, managed by HPS Investment, comprise a £450m senior secured-term loan repayable ahead of other creditors and backed by specific assets, plus a £100m delayed draw term loan available at set points. The funds will be used to bolster its balance sheet and finance current and future product plans, the company said.
The news comes two months after Aston Martin announced it would cut about 600 jobs, most of them in the UK, where the majority of its staff are based. At the time, the company said the cuts would save around £40m a year. The firm has been burning through cash and operating in an increasingly competitive global market, experts note, leaving it particularly vulnerable to reduced demand.
“Aston Martin secures £550m in loans to bolster liquidity after net losses rose 50% to £493.2m and 600 jobs cut.”
The job cuts and loan announcement precede the company’s half-year results, due on 29 July. Chief financial officer Doug Lafferty said in a statement: “This new £550m debt financing significantly strengthens our liquidity, providing us with both additional resilience and further flexibility to execute our current and future product plans.”
Headquartered in Gaydon, Warwickshire, Aston Martin hopes the financing will support its model rollout, including the Valhalla which went on sale last year, as it seeks to reverse its fortunes. The loan provides temporary relief, but the firm still faces structural headwinds from trade tensions and a cooling luxury market in China.