Aston Martin announces £500m UK trade deal with Japan

Iconic British car maker Aston Martin announced a £500m trade and investment deal between the UK and Japan on Wednesday.

The deal was announced by the company's president and chief executive, Dr Andy Palmer, during his visit to Japan as part of the UK delegation accompanying Prime Minister Theresa May.

Aston Martin will buy more than £70m in components from Japanese suppliers including Bridgestone, Denso, Mitsubishi and Yazaki. In addition, it will open an Aston Martin Meta Technology and Luxury Accelerator office in Japan next year. It will also invest in a flagship global brand centre in Tokyo, a new Aston Martin Japan HQ and further growth of the dealer network across the country.

PM 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."

Palmer said: "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."

Last week, Aston Martin said it swung to a £21.1m pre-tax profit in the six months to the end of June from an £82.3m loss in the same period a year ago, as revenue rose to £410.4m from £211.8m. Pre-tax profit in the second quarter came in at £15.2m on revenues of £222m, compared with a pre-tax loss of £52.6m on revenues of £119.2m in the prior-year quarter.