Aston Martin drops supermini Cygnet from its range

LONDON Tue Oct 8, 2013 12:44pm IST

1 of 3. The Aston Martin Cygnet car is displayed on the exhibition stand of Aston Martin during the first media day of the 80th Geneva Car Show at the Palexpo in Geneva March 2, 2010.

Credit: Reuters/Denis Balibouse/Files

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

LONDON (Reuters) - British luxury sports car maker Aston Martin ASTON.UL has ended its foray into the supermini segment by dropping its Cygnet city car from the range after poor sales, a source close to the company said.

The source said Aston Martin's two-door Cygnet, which was based on the Toyota iQ, had been dropped from the company's line up after it "sold less than 150 units" of the 32,000 pound vehicle in Britain.

When it started production three years ago, Aston said it hoped to sell 4,000 Cygnets a year to environmentally conscious city dwellers thought to be keen on a small, easy to park, luxury vehicle.

Aston Martin has struggled for growth since the economic downturn in 2008 and ratings agency Moody's put its non-investment grade B3 rating under review late last year.

The group posted a 16 percent fall in full-year profits, blaming global economic uncertainty for a severe slump in sales of high-end vehicles.

The carmaker, which is majority owned by Kuwait's Investment Dar and Adeem Investment Co, reported a pretax loss of 24.6 million pounds in the year to December 2012, down from the 21.2 million it posted a year earlier.

Revenues fell 9 percent to 461.2 million, with global sales volume down to 67,500 units, from a peak of 110,000 units in 2007.

The company, which celebrates its centenary this year, said the "market segment has been severely affected by recession" and highlighted "weakness in European markets and vehicle launches occurring in the fourth quarter."

Earlier this year Aston Martin agreed to team up with Daimler's (DAIGn.DE) high-performance Mercedes-AMG GmbH division to develop a new generation of bespoke V8 engines.

Aston Martin, the only global luxury carmaker not attached to a larger manufacturer, hopes the deal will help it better compete with the likes of Volkswagen's VOWG_P.DE Bentley and Porsche units, as well as UK rival Jaguar Land Rover, which was bought by India's Tata Motors (TAMO.NS) in 2008 and has since achieved huge sales growth, especially in China. (Reporting by Rhys Jones; editing by Kate Holton)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Global Economy

Global Economy

Chinese factories stalling as euro zone business picks up  Full Article 

M&M Upgraded

M&M Upgraded

Credit Suisse upgrades Mahindra & Mahindra to 'outperform'  Full Article 

HRW Report

HRW Report

Bigoted teachers lead marginalised Indian school kids to drop out  Full Article 

Breakingviews

Breakingviews

Manchester United’s crisis has silver lining  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage