30/08/2017 – News / Automotive / Aston Martin / UK / Japan
Aston Martin announces UK-Japan trade deal worth up to £500m
Luxury sports car manufacturer Aston Martin has announced it will drive trade and investment between the United Kingdom and Japan worth up to £500 million (US$646m) over the next five years, as part of its Second Century business plan. Dr Andy Palmer, Aston Martin President and CEO announced the investment programme during his visit to Japan as part of the UK delegation accompanying British Prime Minister Theresa May.
The trade and investment created by the company signals the importance of the Japanese luxury car market to the global success of Aston Martin. Included in the announcement was the news that Aston Martin exports from the UK (Gaydon and St Athan plants) will amount to a value of more than £400 million (US$517m), boosted by new sports cars and the introduction of the company’s first Sports Utility Vehicle.
Aston Martin has also pledged to purchase more than £70 million (US$90m) in components from Japanese suppliers, including Bridgestone, Denso, Mitsubishi and Yazaki.
Tapping market trends in EV, connected and luxury
The new deal will also result in the creation of an Aston Martin Meta Technology and Luxury Accelerator office in Japan, expected to open in 2018. Additionally, there will be investments in a flagship global brand centre in Tokyo, new Aston Martin Japan HQ and further growth of the Aston Martin dealer network across Japan. Combined, such facilities would help develop insights into luxury customer behaviour in Asia, according to Aston Martin’s CEO. “This advanced product planning office is being created specifically to tap into research and technologies in the electric and connected car areas as well as the innovations Japan is making in the luxury market,” Dr Palmer advised.
“Last week we unveiled our half yearly results, which saw Aston Martin register its third successive quarter of pre-tax profit. Our improving performance reflects rising demand for our new and special products,” Dr Palmer said.
Target to double sales by 2022
“As the world’s second largest luxury car market, Japan is key to our future plans as we completely revitalise and expand our product portfolio under our Second Century plan. We have long enjoyed a loyal following from Japanese customers and the public alike, with our new dealership in Tokyo set to become our largest worldwide by volume.
Between now and the conclusion of the Second Century plan in 2022, Aston Martin aims to more than double its sales, making Japan one of the company’s top five global markets by volume. Aston Martin currently exports a range of four sports cars to Japan including the new DB11 model. In late-2019, the company will introduce a sports utility vehicle built at the company’s second manufacturing facility at St Athan in Wales. More than 80 per cent of Aston Martin production is currently exported – a figure set to rise as it continues to grow sales overseas, particularly in the US and Asia.