Potential Leadership Change at Aston Martin as CEO Andy Palmer Faces Dismissal
Andy Palmer, the CEO of Aston Martin since 2014, is reportedly at risk of being replaced this week as financial backers grow increasingly dissatisfied with the company’s declining share price.
According to a report by the Financial Times, Palmer’s successor may be Tobias Moers, the head of Mercedes-Benz’s AMG division, with a change possibly happening as soon as Tuesday. Requests for comments from both Palmer and Aston Martin went unanswered over the weekend. However, by 3:30 p.m. on Sunday, company officials confirmed they are reviewing the management team and will provide further updates in due time.
The Financial Times also noted that Palmer seemed unaware of the impending leadership change and chose not to comment further when approached by a reporter.
The likelihood of Palmer’s replacement comes as no surprise given Aston Martin’s financial difficulties. The Guardian has reported that the automaker’s share price has plummeted by 98% since its public debut two years ago, largely impacted by the COVID-19 pandemic and Brexit-related uncertainties earlier on.
Sales for Aston Martin’s new Vantage model have lagged, reflecting a broader global downturn in demand for sports cars. The company recorded a £100 million (approximately $122 million) loss in 2019, and critical production for its DBX crossover—an essential model intended to replicate Porsche’s success with the Cayenne—was paused at a critical time. Aston Martin has already reported a £120 million ($145 million) loss in the first quarter of this year, alongside multiple project delays and cancellations, including the Valkyrie hypercar racing program and upcoming electric vehicles under the revived Lagonda brand.
These shifts largely occurred after Canadian billionaire Lawrence Stroll became involved, taking on the role of executive chairman with a 16.7% stake in Aston Martin and investing around $240 million. Stroll’s Formula 1 team, Racing Point, is also set to be rebranded as Aston Martin Works.
Should Moers officially take over as CEO, it may further solidify the partnership between Aston Martin and Mercedes. Recently, Aston Martin has incorporated AMG-sourced V8 engines into several models, although it has announced a shift toward developing V6 hybrid engines in-house.
Before joining Aston Martin, Palmer had an esteemed career at Nissan and is recognized for his passion for the brand, intelligence, and media skills. His early years at Aston Martin witnessed a recovery with strong sales and profits in 2017 and 2018. However, the company has faced significant challenges since then, particularly relating to production, sourcing parts, and tariff issues associated with Brexit, compounded by the pandemic’s disruption of the global auto industry.
One thing is certain: if Moers indeed steps into the CEO role, he will be confronted with a considerable challenge ahead.
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