One of the biggest names in sports-car manufacturing is hurting following COVID-19’s impact on sales.
According to a report by Reuters, Aston Martin has announced plans to cut up to 500 jobs due to low production levels. The carmaker will also cut costs by reducing budgets in marketing, travel, and its contractors. This news comes just a week after the company announced Mercedes-AMG’s Tobias Moers would take over as the company’s chief executive on August 1.
The brand estimates that the decision will net annual savings of £38 million (P2.39 billion), with its restructuring expected to cost around £12 million (P755 million). Aston Martin’s first-quarter sales this year dropped by a third due to the impact of COVID-19 on the market.
“The measures announced today will right-size the organizational structure and bring the cost base into line with reduced sports car production levels, consistent with restoring profitability,” the company said, adding that it expects its first-ever SUV, the DBX, to draw in more customers and help improve sales. The company says the vehicle is still scheduled for deliveries this summer.
It’s likely the automotive industry will feel the effects of the past few months for the foreseeable future. Hopefully, carmakers will be able to bounce back sooner rather than later.