Aston Martin plunged into a new wave as the builder collapsed after a biannual loss

LONDON (Reuters) – Shares in Aston Martin (AML.L) fell 17% to a post-flotation dip on Wednesday after the British luxury automaker lost a six-month loss, the latest car company to be hit by the slump in demand in Europe.

Aston Martin, better known as James Bond's favorite brand, has embarked on a turnaround plan since CEO Andy Palmer took office in 2014 to renew and expand his lineup of models. to penetrate new segments.

The plan led to an IPO in autumn 2018.

But his shares have since dropped by about three quarters, from 19 pounds to less than 5 pounds. The group's latest recent performance in Europe, the Middle East and Africa, where demand has fallen by nearly a fifth, has been reduced.

The group recorded a pre-tax loss of 78.8 million pounds ($ 96 million) in the first half of June, compared to a profit of 20.8 million pounds in the first half of 2018.

Its shares were down 17% to 4.71 pounds at 07:48 GMT.

"We are disappointed that our wholesale forecast is below our original targets, impacted by weakness in two of our key markets as well as persistent macroeconomic uncertainty," said Palmer.

Global wholesale demand grew 6% in the first six months as the group recorded strong increases in both America and Asia, but a decline in Britain and the rest of the continent prompted the automaker to reduce its forecast for the year.

Aston was also affected by the cost of expansion as it built a new factory in Wales to manufacture its first sport utility vehicle and a lower average selling price.

The company said that if it needed additional funding, it would seek funds from sources such as debt markets.

The global automotive industry has been affected by declining demand in China and by the declining demand for diesel vehicles in Europe, as well as by the cost of electrification.

Nissan (7201.T) said it had dropped its profits last week and announced its intention to implement its largest restructuring plan in a decade, removing nearly a tenth of its workforce.

Aston, 106, is also likely to be disrupted by a Brexit disrupting its entirely British production, as delays in ports due to a new bureaucracy could slow down the flow of vehicles and components.

"We do not want a Brexit without agreement because of the disruptions caused by border problems," Palmer said.