Aston Martin scales back EV plans after losing LeEco's backing
Aston Martin has scaled back production plans for its first electric model after cash-strapped investment partner LeEco pulled out of the project, CEO Andy Palmer told Reuters.
The result may be an even more exclusive car, aimed at customers who consider Tesla's top-of-the-range $130,000 Model S to be too ordinary.
Aston Martin will build only 155 RapidE cars, about a third of the initial plan. It also will lean more heavily on Formula One engineering specialist Williams after the withdrawal of Chinese TV and smartphone vendor LeEco, Palmer said.
The setback and Aston's response underscore the challenges and risks niche carmakers face as they scramble to address future demand for electrification from consumers and regulators.
While the privately held Aston Martin brand benefits from the endorsement of fictitious spy James Bond, it lacks the backing of a large automotive parent that many rivals enjoy.
"We have decided to make this car rare, which will obviously tend to push the price higher," Palmer said. "Aston Martin now plans to proceed independently, funding further development of RapidE by ourselves."
Palmer agreed to be interviewed after sources told Reuters Aston Martin's partnership with LeEco had unraveled.
Unveiling the alliance in February last year, LeEco and Aston pledged to launch an all-electric version of the Rapide S sedan in 2018. But the Chinese conglomerate has since slashed its electric car investments, including its U.S. startup Faraday Future's planned $1.3 billion factory in Nevada.
Some Faraday suppliers, including seat maker Futuris and media provider Mill Group, have sued the company for nonpayment, according to court records.
Spokesmen for LeEco and Faraday did not respond to requests for comment on the end of the Aston partnership. Aston Martin declined to discuss its partner's business.
Without LeEco's backing, the U.K. sports-car maker is pushing ahead as sole investor in the electric car, after paring production and pushing back the launch date to 2019.
Aston will start taking orders next month with 10 percent down payments on the RapidE, priced just shy of 200,000 pounds ($255,000) in its home market before incentives.
Aston Martin will build only 155 RapidE cars, about a third of the initial plan. It also will lean more heavily on Formula One engineering specialist Williams after the withdrawal of Chinese TV and smartphone vendor LeEco, Palmer said.
The setback and Aston's response underscore the challenges and risks niche carmakers face as they scramble to address future demand for electrification from consumers and regulators.
While the privately held Aston Martin brand benefits from the endorsement of fictitious spy James Bond, it lacks the backing of a large automotive parent that many rivals enjoy.
"We have decided to make this car rare, which will obviously tend to push the price higher," Palmer said. "Aston Martin now plans to proceed independently, funding further development of RapidE by ourselves."
Palmer agreed to be interviewed after sources told Reuters Aston Martin's partnership with LeEco had unraveled.
Unveiling the alliance in February last year, LeEco and Aston pledged to launch an all-electric version of the Rapide S sedan in 2018. But the Chinese conglomerate has since slashed its electric car investments, including its U.S. startup Faraday Future's planned $1.3 billion factory in Nevada.
Some Faraday suppliers, including seat maker Futuris and media provider Mill Group, have sued the company for nonpayment, according to court records.
Spokesmen for LeEco and Faraday did not respond to requests for comment on the end of the Aston partnership. Aston Martin declined to discuss its partner's business.
Without LeEco's backing, the U.K. sports-car maker is pushing ahead as sole investor in the electric car, after paring production and pushing back the launch date to 2019.
Aston will start taking orders next month with 10 percent down payments on the RapidE, priced just shy of 200,000 pounds ($255,000) in its home market before incentives.
