By Balazs Szabo on 01 Apr 2025, 14:36
On Monday, the well-known British car manufacturer, Aston Martin, decided to offload its minority interest in the Aston Martin Aramco Formula One team. This move is aimed at revitalizing its struggling core operations.
Just last month, Aston Martin revealed its plans to reduce its workforce by 170 jobs, accounting for about 5% of its global employees, after experiencing a loss in the fourth quarter.
In an effort to overcome these financial hurdles, the luxury car brand is looking to generate over £125 million (approximately $161.7 million) through funding led by Chairman Lawrence Stroll’s investments.
Trace back to August 2018, Stroll spearheaded a group of investors to purchase the assets of the then-dissolved Force India Formula One team. The team was rebranded as Racing Point and made a mid-season comeback in the 2018 Formula One circuit, clinching the 7th spot in the Constructors’ Championship.
Fast forward to the 2019 season, the team underwent another name change to Racing Point F1 Team. With Stroll’s son, Lance, behind the wheel of one of the cars, the team maintained its 7th position in the Constructors’ standings.
January 31, 2020, marked another pivotal moment when Stroll’s Yew Tree Investments injected £182 million into Aston Martin, acquiring a 16.7% ownership. Subsequently, Racing Point was transformed into the Aston Martin F1 Team in 2021.
Now, Lance Stroll is pursuing additional investments, potentially increasing his share in the company to nearly 33%, up from about 27.7%, as part of this strategic deal.
Furthermore, Aston Martin has confirmed its intention to offload its minority stake in the Aston Martin Aramco Formula One Team to raise at least £74 million.
Speaking about this strategic move, Adrian Hallmark, the CEO of Aston Martin, stated: “This renewed backing from Lawrence and the Yew Tree Consortium illustrates their tremendous belief in our team and the future trajectory of the Company.
“This funding not only strengthens our financial health but also provides us with the flexibility to innovate and transform our business, setting us on the path to sustainable profitability,” Hallmark added.
On Monday, Stroll emphasized his continued dedication to Aston Martin, referencing the near £600 million he has invested since 2020.
“This new investment reaffirms my deep belief in this remarkable brand and my commitment to establishing a strong platform for long-term value creation. Reducing equity dilution through this premium has reassured our shareholders, bolstering my long-term stake in the Company,” Stroll concluded.
