Iconic British automaker Aston Martin Lagonda announced the sale of its stake in Aston Martin Aramco Formula One team as part of a struggle to boost its balance sheet.
The $146 million deal revealed in a binding letter of intent this week that the Formula 1 team is worth $3.2 billion. Although the buyer has not been disclosed, the move has left Aston Martin uninstalling a 4.6% stake in the team, meaning it never has majority control.
The deal marks a major shift in Aston Martin’s strategy as the company faces deepening financial challenges. Stocks lost more than 50% of their value over the past year, with revenue dropping 34% in the second quarter due to dull demand for high-performance models such as Valkyrie and latent Valhalla HyperCar.
Intensifying pressure is a newly implemented U.S.-Trade Agreement that will automatically reduce tariffs to 10%, but only apply to the first 100,000 vehicles per year. Once that quota is reached, the tariffs will be deducted to a penalty of 27.5%, a cruel prospect for small-volume luxury manufacturers such as Aston Martin.
Although this has improved on the previously flat 27.5% interest rate, it is still far above historical norms and introduces volatility in Aston Martin’s most critical export market.
Ironically, despite the growing season of Aston Martin’s F1 team’s season, the sport’s business value has continued to increase, helping automakers direct their minority stakes. Back in March, the company predicted sales prices to be close to $100 million, but the deal eventually rose by nearly 50%.
The team is controlled by Canadian billionaire Lawrence Stroll, whose yew consortium owns 33% of Aston Martin Lagonda. His son Lance Stroll played for the team. The existing brand agreement means Formula One equipment will continue under the Aston Martin name, even if the manufacturer exits its equity position.
Despite current performance troubles, there are reasons for optimism in the F1 garage. The team secured the service of Adrian Newey, the legendary engineer who recently ruled by Red Bull. Combined with new rules coming in 2026, the restructuring could potentially lift the grid for Aston Martin’s racing arm.
Aston Martin Lagonda leans against the wall and is now in cash saving mode. The divestment is intended to refocus on its core automotive operations and ensure capital to support the upcoming model release and electrification efforts.
While Formula One will remain a key brand tool, the company will clearly prioritize survival over emotion rather than on its minority holdings to generate short-term liquidity.
Paul Jones
Harvard alumnus and former New York Times reporter. Commercial Affairs has been editing for over 15 years, and it is UKS’s largest business magazine. I am also the head of the automotive department of Capital Business Media, working for clients such as Red Bull Racing, Honda, Aston Martin and Infiniti.
