After shutting down production on March 25th, Aston Martin is making the decision to reopen its factory in St Athan, south Wales, on May 5th, and its Gaydon-based factory soon after.
The majority of the company’s employees have been placed on furlough, and will receive 80% of their base salary from May 1st. Aston Martin employs 300 staff at its St Athan facility, and an additional 500 in Gaydon. Production staff will continue to be paid as normal, with guidelines from Public Health Wales and Public Health England in place to protect employees.
In addition to its staff being on reduced salaries, Aston Martin’s senior leadership staff have agreed to a voluntary reduction in pay. Non-executive directors will be taking a 35% cut, with the chief executive, Andy Palmer, also cutting his salary by 35% and not participating in the 2020 annual bonus plan. 20% cuts have been put in place for vice presidents, and other members of senior management have been asked to waive between 5-10%, depending on salary level.
Lawrence Stroll, the recently appointed executive chairman, will be earning a salary of £1 a year. These changes will be put in place retrospectively, effective from April 1st for a three-month period. Monthly reviews will be taken following the three-month spell to make decisions on whether pay cuts will remain in place.
In 2019, Aston Martin reported losses of £104.3mn in 2019, with shares in the company losing more than two thirds of their value this year on top of that. Earlier this week, the business announced plans to focus efforts on launching production of its first sports utility vehicle. Following this announcement, and the decision to reopen two factories, shares in the company gained 7% this morning.
A statement said: "As we continue to manage the challenges posed by Covid-19, Aston Martin Lagonda's primary concern remains the health and safety of its employees and their families, business partners and the local communities.
"The company is committed to providing all the support possible while following public health advice from relevant governments in support of their efforts to contain the spread of the virus.
"The company continues to monitor and regularly review the situation whilst working closely with all its stakeholders including employees, trade unions, the government, public health authorities and local communities to protect the safety of its people, protect jobs, and protect the business."
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