Aston Martin announces half billion pound trade deal with Japan

Aston Martin announces half billion pound trade deal with Japan

Aston Martin Lagonda will steer trade and drive investment between the UK and Japan worth up to £500 million over the next five years. 

The investment program was announced by Dr Andy Palmer, Aston Martin president and chief executive officer, during his visit to Japan as part of the UK delegation accompanying British Prime Minister Theresa May. 

The trade and investment created by the company signals the importance of the Japanese luxury car market to the global success of Aston Martin.

According to the announcement, Aston Martin exports from the UK’s Gaydon and soon to be opened St Athan plants will be worth over £400 million, boosted by new sports cars and the introduction of the company’s first sports utility vehicle.

The deal will see Aston Martin buy more than £70 million in components from Japanese suppliers including Bridgestone, Denso, Mitsubishi and Yazaki.

The luxury car manufacturer will also create an Aston Martin Meta Technology and Luxury Accelerator office in Japan, set to open in 2018.

Other investments include a flagship global brand centre in Tokyo, a new Aston Martin Japan HQ and further growth of the Aston Martin dealer network across Japan.  

Prime Minister Theresa May 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.”   

Dr. 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.”