Aston Martin has announced a package of measures that it says will drive trade and investment between the UK and Japan by up to GBP500m over the next five years.
The investment program was announced by Aston Martin CEO Andy Palmer during a visit to Japan as part of the UK delegation accompanying British Prime Minister Theresa May.
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The announcement will clearly be welcomed by the UK government as it faces difficult Brexit negotiations with Brussels and seeks to highlight British business opportunities around the world.
?Aston Martin said that exports from the UK (Gaydon and St Athan plants) to Japan of its luxury sports cars will be worth over GBP400m over the next five years.
However, Aston Martin also plans to spend more than GBP70m over the period in components from Japanese suppliers including Bridgestone, Denso, Mitsubishi and Yazaki.
Aston Martin will also create an ‘Aston Martin Meta Technology and Luxury Accelerator’ office in Japan, to open in 2018. In addition, 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.
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By GlobalDataThe Prime Minister said: “As we prepare to leave the European Union, it is vital that we build on our existing ties with friends and allies.
“Aston Martin is a prime example of the innovative and world leading firms the UK is proud of and I’m delighted they are joining me on this important trade mission.
“Aston Martin’s £500m deal will directly benefit the Gaydon plant in West Midlands and the St Athan plant in Wales helping safeguard existing jobs and opening new possibilities for future deals with Japan.”
Andy Palmer said: “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.
“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.
“To ensure we are focused on the needs of Japanese and Asian customers, we are creating a Meta Technology and Luxury Accelerator office in Tokyo, reporting directly to HQ, to develop insights into luxury customer behaviour in Asia. 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.”
Between now and the conclusion of the ‘Second Century’ plan in 2022, Aston Martin plans for sales to more than double, 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% of Aston Martin production is exported, a figure set to increase as it grows sales overseas, particularly in the United States and Asia.
