Shares in luxury sports car manufacturer Aston Martin Lagonda surged today after it confirmed it had parted company with its chief executive following a plunge in its share price.
Media reports over the weekend said Aston Martin chief executive Andy Palmer was being ousted in favour of senior Mercedes executive Tobias Moers.
Aston Martin confirmed Palmer stepped down yesterday with Moers set to join on 1 August.
Aston Martin shares jumped nearly 36 per cent to 48p this morning.
Neil Wilson, chief market analyst for Markets.com, said: “Aston Martin shares shot up 30 per cent after Andy Palmer walked the plank. It’s a pretty damning indictment of his tenure that the shares jumped this much after news of his sacking. Mercedes AMG stalwart Tobias Moers picks up the chalice.
“Aston Martin has been one of the worst stock listings in living memory. In spite of rocketing higher today they are still worth a tenth of the IPO price – listing at about £5.50 today they are worth 45p. Things had already got pretty horrendous before this year; the coronavirus outbreak has been the coup de grace.”
Palmer’s exit follows a turbulent period for the company which last week posted a steep loss in the first quarter after sales were severely impacted by the coronavirus pandemic.
In its first results since Canadian billionaire Lawrence Stroll became executive chairman of the iconic firm, the company said its new DBX model was on track for summer delivery despite the crisis.
Stroll said: “The board has determined that now is the time for new leadership to deliver our plans. On behalf of the board, I would like to thank Andy for his hard work, personal commitment and dedication to Aston Martin Lagonda since 2014.”
Moers said: “Following the arrival of Lawrence, as executive chairman, the significant investment from his Yew Tree Consortium, the completion of the equity raise and the reset, I believe that there is a significant opportunity to harness the strengths of the business to successfully deliver the planned product expansion and brand elevation.”
Aston Martin also confirmed today it was planning to shake up its board.