Aston Martin non-exec gives £1m backing

Ford (NYSE:F) recently said that it would stop selling cars in the UK and Europe with any form of petrol-fuelled engine by 2030, at least in terms of passenger vehicles, while General Motors (NYSE: GM.), plans to have all its cars emission-free by 2035.

Perhaps the announcement that raised most eyebrows was Jaguar’s pledge to become an electric-only brand from 2025 onwards. Admittedly, group sales have suffered in recent years due to an over-reliance on diesel powertrains and saloons, at a time when everyone seemed to be switching to SUVs. So the move might make more sense from a sales perspective than a purely environmental one. 

Has Jaguar’s move has set the precedent for luxury marques? Lawrence Stroll, the Canadian billionaire who lead the bailout of Aston Martin Lagonda (AML) last year, told the Financial Times that the Warwickshire-based group will launch a new pure-electric sports car and SUV by 2025, both of which will be built in the UK. However, it will continue to make traditional engines for car enthusiasts, even though some countries are set to ban the sales of these types of vehicles from the end of the decade.

The practicalities of the industry switching en masse to EVs within such a limited timeframe could risk another lengthy period of economic disruption. Such a scenario does not appear to worry Michael de Picciotto, a non-executive director of the group, who has forked out close to £1m for 50,000 shares as part of his beneficial holding. That followed on from a separate hefty acquisition by fellow board member Robin Freestone. The market price has not changed appreciably since December’s share consolidation, and we remain circumspect over any near-term recovery prospects. Sell at 1,967p.