Aston Martin Lagonda Global Holdings PLC is poised to replace chief executive officer Andy Palmer with the head of Daimler AG’s Mercedes-AMG performance division, according to people familiar with the matter.
AMG head Tobias Moers could be named as Aston Martin’s new CEO as soon as this week, the people said, asking not to be named because the matter is confidential.
In a statement, Aston Martin said it was reviewing its management team and any announcement would “be made as and when appropriate.”
The Financial Times reported earlier on the planned changes, saying an official announcement was expected today.
Palmer had not been informed of the upcoming announcement, the newspaper reported.
The shakeup comes less than two months after the 107-year-old British luxury carmaker brought in new investors led by billionaire Lawrence Stroll, who became executive chairman.
The ￡536 million (US$663 million) capital infusion was meant to rescue the debt-laden company, which has struggled since Palmer took it public in 2018 with a plan to mimic the success of Italy’s Ferrari NV.
Instead, sales stalled, inventory piled up and Aston Martin found itself short of cash earlier this year even before the coronavirus threw the auto industry into a virtual standstill.
The company has seen its shares fall more than 90 percent since the initial public offering.
Aston Martin earlier this month said that it might need to raise more funds and take further steps to cut costs and control cash as the car-sales collapse upends its turnaround plan.
Palmer, who joined Aston Martin from Nissan in 2014, has been focused on the introduction of the pivotal DBX, a US$189,000 sports-utility vehicle at the heart of Aston Martin’s comeback strategy.
The company is banking on the model selling in higher volumes than the iconic sports cars made famous in the early James Bond movies.
Moers, 54, studied engineering in Offenburg, Germany. He briefly worked at an electric-car startup before joining AMG, where he has held the top job since October 2013.
Under his watch, the performance-car brand expanded its product lineup, adding compact pocket rockets like the GLA 45, and stepped up development of hybrid models.
At Aston Martin, DBX orders have continued to grow even with most showrooms closed, the company has said. Deliveries are on track to begin in summer, and the company plans to launch derivative models next year.
Aston Martin reported a ￡76.6 million operating loss in the three months ended in March, and said it could not give a clear view on the full-year outlook.
Additional reporting by Reuters
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