To commemorate the 50th anniversary of the Concorde’s maiden flight, British car maker Aston Martin revealed their DBS Superleggera Concorde Edition. Inspired by the supersonic passenger airliner, there are just 10 available examples for purchase which could boost sales in Q4 by £3.21m.
Aston Martin needs the car to succeed as the end to a troubling 2019 draws near. Although the new edition is unlikely to cause a full recovery, any increase of income will be welcomed because sales throughout 2019 have struggled.
The car manufacturer has blamed difficult trading conditions in the UK and Europe. Luxury industries have suffered as a result of uncertainty surrounding the UK’s future relations with the EU.
In the nine months to 30th September 2019 revenue was £657m year-on-year, down 7%. Whole sale volumes have decreased by 3% including a 16% decrease in Q3 2019.
Owing to a small production run, the vehicle is expected to have little impact on recovering wholesale volumes.
DBS Superleggera Concorde Edition increases profit margins
Aston Martin experienced a loss of £13.5m in Q3 2019 in comparison to the previous year. The release of the DBS Superleggera Concorde Edition could be the group’s last chance to boost profits for the year.
The DBS Superleggera Concorde Edition features a selection of interior and exterior design and trim modifications. These include British Airways colors on the roof strake and a black tinted carbon fiber roof with Concorde silhouette graphic.
In concordance with the design upgrades, Aston Martin has marked up the price of the concord edition by £96,000. This brings the price to a total of £321,000. Profit margins for the original DBS Superleggera are limited to 8%. However, the large mark up in price anticipates significantly higher profit margins for the Concorde edition.
In two days after the car was released on 26th November the share price rose nearly 20% on the opening price that day.
The share price jump suggests traders believe a recovery for the company in the final quarter of 2019 is possible based on the new car. This follows a share price drop of 80% below the price when the company originally listed during August.