Aston Martin Japan Deal

A £500 million investment and trade deal with Japan was announced by Aston Martin's President and CEO Dr. Andy Palmer on 8/30/2017. This comes during his visit as part of a UK delegation with Prime Minister Theresa May to bolster trade as the UK prepares exiting the EU.

What Does Japan Get?

-Aston Martin will utilize Japanese suppliers for components such as Bridgestone, Denso, Mitsubishi, Yazaki, etc.

-Aston Martin will open a "Meta Technology and Luxury Accelerator" in Japan (scheduled 2018)

-Aston Martin will invest in a flagship global brand center in Tokyo and create a new Aston Martin Japan HQ.

What Does Aston Martin Get?

-improved trade alliance as UK exits the European Union (80% of Aston Martin's production is exported)

-expanded dealer network in Japan

What Does it All Mean?

Aston Martin will likely continue to expand it's sales overseas especially with the introduction of it's crossover the DBX. Meanwhile, Japanese businesses will have the benefit of selling to Aston Martin. In my opinion it is likely buying from Japanese suppliers will only improve the quality and reduce production costs for Aston Martin. With the uniqueness of the Japanese luxury market it is a no-brainer to have dedicated "flagship global brand centers" and a "luxury accelerator" in Japan.

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