Aston Martin - Opportunities and Threats Under New Ownership

The big news this week for Aston Martin fans is that the luxury sports car maker made famous by James Bond 007 is heading back into British hands.

Ford announced that they have sold the company to a UK-led group fronted by Dave Richards - boss of respected motorsport specialist Prodrive - for £479 million.

The American car giant has had a big stake in Aston Martin since 1987, buying the company outright in 1994 and overseeing a period of unprecedented sales success. Under Ford's ownership, the company developed a number of respected new models and reported record sales of 7,000 cars in 2006.

But with the onset of Ford's financial troubles, the group decided to sell the luxury marque. Ford lost more than $12bn in 2006, and faces huge restructuring costs. However the group has still held on to a £40 million slice of the company.

The sportscar specialist will remain at its purpose-built factory in Gaydon (Warwickshire), where 1,800 people are employed.

Prodrive success

Under the leadership of Dave Richards, Prodrive has built a formidable reputation in motorsport, running the Aston Martin racing team in the sports car series around the world as well as the highly-successful Subaru rally team.

Dave Richards also managed the BAR Formula One team from 2002 to 2004, taking the team from eighth to second in the manufacturers world championship in that period, before Honda took a greater role and BAR team was rebranded. Richards was also a leading figure in the Benetton F1 team in the late 90s.

Most interestingly for motorsport fans, Prodrive owns a slot to enter the 2008 F1 World Championship. But the consortium has called 'unfounded' speculation that Prodrive may now brand its F1 cars Aston Martin.

Also in the consortium with Dave Richards is finance and shipping banker John Sinders and two Kuwaiti investment companies.

Mr Richards reassured Aston Martin fans that the new owners were committed to the company long term and would not be seeking a quick turnaround like many private equity groups do.

Exciting future

As well as the potential for an Aston Martin presence in F1 racing to excite fans, the new owners of the company have announced plans to step up production by more than a quarter in the next three years.

Growth will be driven by the launch of two new models - the DBS, as seen in latest James Bond Casino Royale, and the four-door Rapide - taking the marque's range to seven cars.

At least 200 more workers are expected to be taken on at an expanded Warwickshire plant as a result.

Questions ahead

But looking further ahead, the biggest question facing the new owners is, without the backing of a well-funded major car group enjoyed by many of Aston Martin's main rivals, whether they will have enough cash to spend on developing the brand's cars to keep them ahead of the competition.

A further threat is looming EU car emissions regulations. If these are implemented on a per-manufacturer basis, that would present a major problem for independent car makers like Aston Martin, unable to meet average emissions limits across their range by balancing the inevitably higher output of their powerful sporting models against low-emissions city cars, as large car groups will be able to.

For the company to survive under such an imposed EU regime, huge investment would be needed to produce low-emissions powerplants that nevertheless maintain the required level of power and performance. Though it remains to be seen exactly how the EU will enforce the lower emissions limits on car makers that have been agreed.

By Stuart Coster.

Visit the Blog about aston martin kansas city

Luxury Cars For Sale - How To Make A Smart Car Buying Decision

When you see exotic automobiles like a Ferrari's and Lamborghini's driving down the highway, do you wonder how people can afford such extravagance? As teenagers we had these cars plastered across our bedroom walls. But now we're grown up and have them as screen savers on our computers at work.

If you have never had the chance to be one of the "chosen few" and have a shiny red Ferrari Modena parked in your garage (or Porsche 911, Turbo, Ferrari 355, 360, F430, Lamborghini Gallardo, BMW M5, Aston Martin, etc.), I have a confession to make. Today's auto consultants can literally save you thousands of dollars (quite often well over "ten" thousands of dollars!) on one of these high-end or exotics and point you in the right direction for financing. It's now possible to be "one of the few."

For the past 10 years we have helped hundreds of people to make their dream come true. Let me give you an example. How about getting a MINT 2000 Ferrari 456 , 7,500 miles, gray, black, and auto - all records, receipts and even the original $246,000K window sticker for only $70,000? We found just that for one of our clients. He bought it, racked up some miles, and sold it for a $15,000 profit. He made enough profit to be able to use as a down payment for his dream car - an Aston Martin Vantage. By buying a used Porsche 911 or a Ferrari 355 Spider you can save literally thousands of dollars,and double these savings if you hire us to find you a car!

You can take advantage of our 10+ years of established relationships with auto dealers negotiation tactics with private sellers. Our clients get exclusive luxury sport cars below the book values and in most cases at below the auction prices that the US car dealers are buying from!

We completely share your passion for exclusive cars because we're owners of these too. Do you want to buy a Porsche Carrera 911? We know why: a classic look which is always cool. Go for it, you only live once. By the way, all Porsche 911's year 1999 or later basically have the same power, performance and looks as the later ones. How would you like Porsche 911 Cabriolet for only $25,000? We'll find it. How about the Porsche Carrera GT SUPERCAR? We'll not only find the perfect color combination, we'll save you enough money to buy a Porsche Boxster as well!

Some other models may grab your attention as well and we will be able to find them too! All you need to make your dream come true is to contact us today. It is that simple.

By Tim Broder.