Finally, a consortium led by Lawrence Stroll took a 16.7% stake in Aston, with Stroll's Racing Point set to become Aston Martin from 2021, for the next ten years. Lawrence Stroll will join the company's board as executive chairman, while Andy Palmer will be staying on as the CEO. Chinese automaker Geely (which owns Volvo and Lotus, as well as half of Smart) had also bid for the English automakers but the latter settled with Stroll.
The investment includes the purchase of 45.6 million worth of new shares as well as short-term funding of USD 73 million. A new rights issue raise an additional USD 418 million. Such investment will be a wave of fresh air for Aston for the company has been struggling for quite some time now. Reports of Aston searching for investors has been doing the rounds since December. Such was the situation that many projects had to be cut-loose for saving the cost of the company and keeping it afloat.
Aston has suspended the development of the limited-run Rapid E. Furthermore, many people have lost their jobs for the company looks forward to saving $12 million in one year. But, the good news is that Aston will be pursuing the idea of launching many mid-engine supercars.
Now, because Aston already is the technical partner of Red Bull, the Valkyrie, which was a product of this collaboration, will be launched this year. The Valhalla, which was also a product of this collaboration, will see the light of the day in 2022. Though, Aston and Red Bull's partnership in F1 will continue until the end of this year, as far as producing road-legal hyper-fast cars are concerned, no word on that yet.
The Valhalla will house Aston's all-new hybrid V-6 engine, so, there's still a bit of time left for Aston to become a full-on formula one team. Because, Racing Point, the team which will race as Aston, the uses a Mercedes' V6. The Valkyrie is supposedly going to house a massive 1000 - hp powerful Cosworth engine, therefore, Aston is looking forward to getting that V-6 engine out as soon as possible.
The problems that made it difficult for Aston to stay in business were in two-fold - collapse in its stock price value due to the IPO and secondly, less demand for Aston Martin's. With the Vantage performing well under expectation, a lot of hopes are pinned on the DBX, Aston's uber-plush, high-performance SUV. Aston says it currently has 1800 orders for the DBX, out of which 1200 are "customer-specific." As has been confessed by Palmer himself, such rate has "materially better than for any previous models."