2.25 AM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

Aston Martin still in top gear on expansions

Dr Ulrich Bez Chairman and CEO of Aston Martin (REUTERS)

Published
By Reena Amos Dyes

Despite the global downturn, luxury carmaker Aston Martin is not putting any brakes on their expansion plans and product range. Dr Ulrich Bez, Chairman and CEO of Aston Martin, told Emirates Business: "I am realistic that 2009 will be a challenging year and we have put various measures in place to see the company through the current economic downturn. We produced 6,400 cars in 2008 and our sales expectation for this year is 4,500 units, give or take a few."


How does 2009 look for the luxury car market?

Like other premium car brands we are seeing hesitation in the luxury car market, although we are still seeing growth in some markets such as Russia and South Africa. In addition to our existing 125-strong global dealer network, we plan to have 25 more dealers by the end of this year. We have the best products in the company's history and will soon be launching V12 Vantage and DBS Volante, so I am confident that 2009 will be a good year for us.

What was the idea behind bringing back the Lagonda brand?

Lagonda is one of the oldest and most iconic names in luxury car manufacturing. It will bring avant-garde luxury to around 100 different countries, vastly increasing our global reach. The Lagonda concept car which we showed at the Geneva Motor Show in March this year is a powerful four-wheel drive, four-seater that will satisfy the most discerning and demanding owner. This concept forms the first possible expression of the Lagonda brand of the future.

Why revive the Lagonda now when the world is going through a recession?

Lagonda is part of our long-term plans and is to go into production in 2012 so it is critical that we continue to forge ahead with our long-term plans, and the revival of this iconic brand is part of our future.

What are your plans for the Middle East?

The region will continue to be at the forefront of our plans, and we will grow our market presence and commitment here. The four-door Rapide will take our presence in the Middle East to the next level for 2010, and Lagonda will build on this further still. Aston Martin has seven dealers in five countries in the Middle East. We have presence in Dubai, Bahrain, Kuwait, Qatar, Jeddah, Riyadh and Al Khobar in Saudi Arabia.

What is your take on the recession and the luxury car market?

I think of Aston Martin as being in the business of making luxury goods, and while we see declines in some market we are still selling cars and we will be profitable this year.

Last year you posted the second highest profits in 95 years. What were the factors behind it?

Since I became CEO in 2000, we have strived to create outstanding products, and today our range is the strongest and most desirable. This really became evident from 2004 onwards with the launch of DB9. These products have underpinned Aston Martin as a leading luxury sports carmaker with class-leading levels of refinement, engagement and beauty.

After last year's spectacular results what are your expectations for 2009?

I am realistic that 2009 will be a challenging year and we have put various measures in place to see the company through the current economic downturn. We produced 6,400 cars in 2008 and our sales expectation for this year is 4,500 units give or take a few. The plans for the brand and the business remain stronger than ever, with Aston Martin holding market share in key countries, expanding into new markets and introducing further new products this year.

Which is your biggest market?

The UK has been our strongest market, although last year it was a close call among the UK, the US and Europe.

How were the first three months of 2009 for you globally? Did the recession hit your sales?

The first three months of this year have been more challenging in some markets than others. We have seen growth in specific markets, including the Middle East. The Middle East continues to perform well for us, with particularly strong demand for the new DBS Auto. In comparison to the same period last year we are approximately 20 per cent up.

What are the challenges you face and how will you solve them?

The key is to manage the supply of such a desirable and exclusive brand. The flexible nature of our manufacturing has enabled us to adjust this and we will continue to monitor the situation closely. New products will also be a key asset to us. In addition to the strong products we have today, over the next 12 months we will also be launching V12 Vantage, DBS Volante, One-77 and Rapide.

You plan to expand your sales from 30 to 100 countries. What is the time frame for this expansion?

Only Lagonda will allow us to expand at this level, and this will take time. We have been developing our global dealer network, the latest addition being Croatia in February. We want to choose the right partners in these new markets for both the Aston Martin and Lagonda brands, and this is not a quick process.

Won't all this expansion and return of the Lagonda present a financing challenge?

This expansion is part of our plans, and we are talking to several prospective partners for capital. I don't foresee any problems in finding a suitable partner.

With Investment Dar Co disposing of assets do you think they will offload their stake in Aston Martin?

No. Our shareholders remain very committed to Aston Martin, and from the beginning of the relationship they have worked closely with us, signing off the construction of our new Design Studio, our impressive test facility at the Nurburgring in Germany and new products including the four door Rapide. We are looking for capital investment in the same way that Daimler have done with Aabar Investments from Abu Dhabi.

What is your core growth strategy?

The Aston Martin dealer network has grown by 50 per cent in the last eight years, expanding from operating in 17 markets to more than 30 today. We will continue to expand into new markets ensuring that all products continue to be exclusive and desirable.

Where do you see Aston Martin five years from now?

Aston Martin will be the envy of all other luxury car manufacturers.


PROFILE: Dr Ulrich Bez Chairman and CEO of Aston Martin

With more than 30 years experience in the automobile industry, Dr Bez is one of the world's foremost and innovative automotive engineers and strategists. He has been responsible for product design and development at Porsche, BMW and Daewoo.

Before joining Aston Martin, Dr Bez was a business adviser to Ford Motor Company in the US. Dr Bez, who was born at Bad Cannstatt in Germany, has a Doctorate in Engineering from the University of Berlin and is the author of more than 40 scientific publications.

He was the recipient of the NHTSA Safety Award in 1982 for his research into side impact protection and aluminium structures.

Since joining Aston Martin, he has led the regeneration of the marque with new facilities including new world headquarters, 125 dealers worldwide, new corporate identity, return to competitive motorsport and the introduction of 10 new models.

 

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.