Aston Martin Seeks Funding For SUV, Hybrid Tech: Report

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Cash-strapped Aston Martin is seeking funds for an expansion from its current model range, two sources familiar with the matter have revealed to Reuters. The automaker, which is majority owned by Kuwaiti and Italian investment firms, and run by newly appointed CEO Andy Palmer, is expected to issue new shares or bonds to help raise between $156 million  and $234 million.

One new model, according to the source, will be an SUV, something that was previously dismissed by Aston Martin design chief Marek Reichman. The premium SUV segment has been one of the fastest growing segments in recent years but a lack of a suitable platform has left Aston Martin out of the action. The Lagonda concept from 2009 showed what an Aston Martin SUV might have been like.

In addition to the SUV, a new sedan and hybrid technology are said to be in the planning.

Unfortunately for Aston Martin’s investors, the new strategy will mean the automaker will likely continue losing money until the end of the decade. Earlier this year, Aston Martin CFO Hanno Kirner said the automaker would return to significant profitability after 2016. Now, according to the sources, the profitability target has been pushed back to 2020.

The new round of funding will be addition to a previously raised $800 million, which is being used for factory upgrades as well as the development of a new platform to underpin Aston Martin’s next-generation sports cars starting with a replacement for the DB9 in 2016.

More details on Aston Martin’s future plans are expected to be revealed at the 2015 Geneva Motor Show in March.

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