Aston Martin Lagonda "Not For Sale"

The Kuwaiti owner of Aston Martin, Investment Dar Co is disposing of assets to help reduce its financial obligations as the credit crunch takes it's toll on the automotive industry, but,  Chief Executive Officer Ulrich Bez said he doesn’t expect the luxury carmaker to be sold.

The Gulf company, which controls 50% of  Aston, said yesterday that it may sell “non-core assets” as part of a new strategy of focusing on unspecified parts of its banking, real-estate and luxury-goods operations.

“Our shareholders are committed to a long-term investment in Aston Martin,” Bez said yesterday in a telephone interview. “They see us as the icing on the cake in the luxury business.”

Investment Dar has helped Aston to invest in new products and supports a strategy of bringing back the Lagonda brand, the CEO said, adding that the company last year posted the second- highest profit in its 95-year history. Still, plans to expand sales to 100 countries from about 30 with the return of the Lagonda present a financing challenge, he said.

“For our growth plans for Lagonda we are looking to the best way to finance this, and there is no one in the world which could by itself finance growth of two or three times in the market,” Bez said in the interview.

Investment Dar presented its restructuring plan to foreign and local banks and investors at a meeting in Kuwait yesterday. Credit Suisse Group is acting as adviser. Details of the strategy won’t be disclosed until after a consultation period.

“Our proposed financial restructuring plan presents a considered and fair proposal in light of current market conditions,” senior executive vice president Amr Abou El Seoud said in the statement.

Just a few short month ago, Aston Martin were crowing about their new one77, the most expensive car in the world, now they are shedding staff and facing financial issues along with the rest of the luxury world.