Aston Martin to sell F1 branding rights as it warns of bigger loss

Feb 20 - Aston Martin is to sell the right to use its name on the Aston Martin F1 Team for 50 million pounds ($67.29 million) to bolster its finances after a challenging year.

The British luxury carmaker, facing tariff pressures and weak demand in North America and China, also warned on Friday of a bigger annual loss than the market expected, hitting its shares which fell more than 4%.

The company said the perpetual naming rights deal with AMR GP Holdings, which operates its Formula One racing team, would "enhance the group's liquidity position".

Aston Martin has been trying to shore up capital throughout the year, including a $162 million injection from Chairman Lawrence Stroll and a deal to sell its stake in his F1 team in March.

Known as the car driven by James Bond, the carmaker cut back its spending on developing new vehicles in October, citing "extremely subdued" Chinese demand and broader sector pressures in the UK.

Aston Martin shares were down 4.4% at 57 pence by 0842 GMT.

The F1 branding rights deal will require shareholder approval as a related‑party transaction involving Stroll, who indirectly controls AMR GP.

Shareholders representing 54% of the company, including Stroll's Yew Tree Consortium, Geely and Mercedes-Benz, have given binding commitments to vote in favor of the naming rights sale.

Ahead of its scheduled annual results on February 25, Aston Martin on Friday said it delivered nearly 10% fewer cars this year, hurt by fewer high-margin special deliveries in the year.

The company expects an adjusted operating loss slightly below the lower end of market consensus of a loss between 139 million pounds and 184 million pounds ($187.07-$247.35 million), according to company-compiled consensus.

Aston Martin said it continues to expect material improvement in 2026 driven by around 500 deliveries of its Valhalla hypercar model and ongoing cost-cutting measures. REUTERS