Shocking decision from the luxury car giant! Plans postponed, 170 people laid off

The company’s new strategy is to focus on developing plug-in hybrid models (PHEVs), with Aston Martin’s first fully electric vehicle not due to hit the market until later this decade.

This decision is seen as a step back in the company's previously postponed electric vehicle push. An electric model was planned to appear in the James Bond film "No Time to Die" in 2019, but that project was canceled. The electric model, which was expected to be released in 2026, was also postponed last year.

Aston Martin shares fell 11% after the announcement. The company does not expect sales of gasoline-powered vehicles to rise significantly this year.

According to the news in the Guardian; the transition to electric vehicles in the global automotive sector has also slowed down. Although electric vehicle sales continue to grow, they are not increasing at a pace that will meet manufacturers' expectations. Major manufacturers such as Stellantis have announced that they will continue to offer customers gasoline, hybrid and electric engine options.

Aston Martin's 2024 losses rose by 20% to £289m. The company's sales fell by 9% to 6,030 units, below the 7,300 sales target when it went public in 2018.

Aston Martin, which was taken over by the Yew Tree Consortium led by Canadian billionaire Lawrence Stroll in 2020, needs “difficult but necessary” steps to make it financially sustainable, the company’s chief executive Adrian Hallmark said, with job cuts planned to save £25m a year.

Hallmark stated that there were disruptions in production due to problems in the supply chain and that this had a negative impact on the company's financial results. It said that they reshaped their sales strategy in order to balance demand and supply.