Aston Martin furloughs workers as production suspended

UK sports car-maker Aston Martin said today it would furlough some of its workers after the coronavirus crisis forced it to close factories.

Under the government scheme employers can claim for 80 per cent of wage costs of up to £2,500 for staff they place on leave.

The company suspended production at its Gaydon and St Athan facilities last week.

“Staff are now working from home and the process of furloughing employees as appropriate has commenced,” the company said in a statement.

Following its general meeting today, the company also said it will be raising £536m through an equity offering, including a private placement of shares for £171m to the Yew Tree Consortium led by Canadian businessman Lawrence Stroll.

Aston Martin has struggled since its London float in 2018, hit by falling demand in China and sluggish market for luxury cars.

Today, it also said Stroll would join its board as executive chair from next month.

Stroll, who is part-owner of the Racing Point Formula 1 team said Aston Martin would enter an F1 team in the championship next year as part of its planned turn-around.

“This [investment] gives the necessary stability to reset the business for its long-term future. We have a clear plan to make this happen, including Aston Martin entering an F1 works team next season and I look forward to working with the management team to deliver this programme,” he said.