logo
  

Aston Martin Lagonda Global Commences Legal Proceedings Against Nebula Project

Aston Martin Lagonda Global Holdings plc (AML.L) said that it has commenced legal proceedings against Nebula Project AG and its board members in order for the prosecutor to investigate any potential criminal behavior following the failure to pay some customer deposits for Aston Martin Valkyrie program orders received by Nebula Project AG to the company.

Aston Martin has also terminated the underlying commercial agreement with Nebula Project AG.

Aston Martin said it is fully committed to supporting and working with those customers affected to ensure that they will still receive delivery of their Valkyrie program vehicles as scheduled, prioritising customer relationships, despite the company not having received all the deposited funds.

In 2016, Aston Martin reached an arrangement with Nebula Project AG to underpin the development of the Aston Martin Valkyrie and certain other mid-engine programs. As per the terms of the agreement Nebula Project AG was to receive royalty payments, which could have been significant over time, linked to production volumes of these programs and Nebula Project AG meeting its funding commitments. As a result of the termination of the commercial agreement with Nebula Project AG, Aston Martin is no longer liable for any of these potential royalty payments.

Aston Martin Tuesday is terminating the dealership arrangements it had with AF Cars AG, a company operating Aston Martin St.Gallen in Switzerland and managed by the same board members as Nebula Project AG, after learning that vehicles have been sold in breach of terms of the dealership agreement.

Aston Martin expects the net financial impact to be positive over time. However, for the year ending 31 December 2021 it is expected to reduce both cashflow and EBITDA by up to 15 million pounds, including a provision of up to £5m of trade debtors.

The company expects to book the provision in the second quarter and for the remaining impact on cash flow and EBITDA to arise primarily in the fourth quarter. The company is confident that the net negative impact for 2022 can be managed within current expectations.

Aston Martin noted that it has performed well year-to-date during 2021, following the successful completion of the supply to demand rebalance for GT/Sport cars. Aston Martin Valkyrie is on track for first deliveries in the second half of the year.

Aston Martin said it is on course to achieve its financial guidance for 2021 and remains confident in achieving its medium-term targets of 10,000 wholesales, 2 billion pounds revenue and 500 million pounds adjusted EBITDA by 2024/25.

The company will provide further updates on the issue and the legal proceedings as appropriate.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
McDonald's says equal pay for women is just the beginning, while conforming that the fast-food giant pays women globally 99.85 cents on the dollar for similar work, taking into account legitimate pay drivers such as level, location, experience, and performance. The company added that it is on track to close that identified gap in 2022. Verizon Communications Inc. (VZ) said, on an adjusted basis, its third-quarter earnings per share rose 12.8 percent from a year ago. The company said its earnings were highlighted by revenue and customer growth as more than one in four Consumer wireless phone customers now have a 5G-capable device. The... While reporting financial results for the third quarter on Wednesday, Abbott Laboratories (ABT) raised its earnings and adjusted earnings guidance for the full-year 2021. For fiscal 2021, the company continues to project earnings from continuing operations in a range of $3.55 to $3.6 per share and...
RELATED NEWS
Follow RTT