Aston Martin’s plans to return to F1 next season as a works outfit are still on track despite the manufacturer warning that it did not have sufficient “working capital” to meet its requirements for the next 12 months.
In a series of announcements released on Monday evening, Aston Martin confirmed that Racing Point F1 owner Lawrence Stroll will take over as executive chairman of the company on April 20.
In January, the cash-strapped luxury automobile manufacturer announced that a consortium of investors led by Stroll would acquire a stake of up to 20 percent in the troubled automaker whose dire financial situation has forced it to seek outside investment.
Wolff denies reports of receiving Aston Martin offer
Unfortunately, the onslaught of the global coronavirus pandemic has dealt another blow to Aston’s sales, forcing it to seek additional funds to ensure its survival.
Overall, a rights issue has raised £536 million – a large part of which includes the Stroll consortium investment – while a further £150m will be made available to the company in the form of loans.
However, while the influx of capital will allow Aston to put its ‘make or break’ DBX SUV car into production at its St Athan factory when suspended activity hopefully resumes at the facility on April 20, the company issued a warning on its future
“Taking into account the proceeds of the capital raise, the Company is of the opinion that the Group does not have sufficient working capital to meet its requirements for 12 months following the publication of the Original Prospectus.
“This is due to the increased impact, since the Company published the First Supplementary Prospectus on 13 March, of COVID-19 and the ongoing and unquantifiable uncertainty it has created and continues to create.”
Stroll offered no specific insight on Aston’s involvement in F1 from 2021 except that its plans to return to Grand Prix racing with Racing Point were still on track.
“I, and my co-investors in the consortium, continue to believe passionately in the future of Aston Martin Lagonda,” said the Canadian billionaire.
“This is most clearly demonstrated by our investment of £262m which underpins the financial security of the company. This is a very significant capital raise of £536m – due to be made by my consortium and other shareholders at a very challenging time.
“This gives the necessary stability to reset the business for its long-term future. We have a clear plan to make this happen, including Aston Martin entering an F1 works team next season and I look forward to working with the Management team to deliver this programme.”
Gallery: The beautiful wives and girlfriends of F1 drivers
Keep up to date with all the F1 news via Facebook and Twitter
Click Here: New Zealand rugby store
