Racing Point to be renamed as Aston Martin F1 for 2021
Aston Martin has taken a big blow after a disappointing performance in 2019 and was looking to strengthen its balance sheet to try and improve liquidity and reduce leverage. The UK automaker is mainly owned by Italian and Kuwaiti private equity groups and the fundraising plan will ease funding strains as the company starts building their first SUV, the Aston Martin DBX along with more important plans - successfully relaunching the Vantage and the Vantage Roadster along with starting Aston Martin Valkyrie deliveries later in the year.
A ray of hope was Canadian billionaire and co-owner of Racing Point F1 Team, Lawrence Stroll, who has bought a 16.7 per cent stake in the company for 182 million pounds. Stroll will also aid in raising another 318 million pounds. As a result of the deal, the Racing Point F1 Team will be renamed yet again, as the Aston Martin F1 Works team for the 2021 season.
Here's what Lawrence Stroll had to say of the agreement:
"I am very pleased that I, and my partners in the Consortium, have reached agreement with the Board and major shareholders to make this significant long-term investment. Aston Martin Lagonda makes some of the world's most iconic luxury cars, designed and built by very talented people. Our investment announced today underpins the Company's financial security and ensures it will be operating from a position of financial strength.
On completion of the £500m of fundraising, I look forward to working with the Board and management team in Aston Martin Lagonda to review and improve each aspect of the company's operations and marketing; to continue to invest in the development of new models and technologies and to start to rebalance production to prioritise demand over supply.
I, and my partners, firmly believe that Aston Martin is one of the great global luxury car brands. I believe that this combination of capital and my experience of both the motor industry and building highly successful global brands will mean that, over time, we fulfill Aston Martin Lagonda's potential."