Aston Martin Planting Seed Money for Luxury CUV

Aston Martin Lagonda raises £200 million ($302.8 million) with which the 102-year-old sports car manufacturer will fund its expansion into the luxury CUV market.

The additional capital investment comes in the form of preference shares, £100 million ($151.4 million) of which were issued April 29, with the remaining £100 million – already fully subscribed – to be issued in the next 12 months.

The plan to enter the luxury GT CUV market will see the introduction of a new vehicle based on the DBX concept shown at the recent Geneva and Shanghai auto shows.

“This additional long-term funding will enable us to add extra model lines and broaden our presence in the luxury-market segment by the end of the decade,” Aston Martin Lagonda CEO Andy Palmer says in a statement.

“The DBX concept has generated interest far beyond our expectations. The additional investment…will allow us to realize the DBX and other new luxury vehicles that will form the strongest and most diverse portfolio in our history.”

The announcement comes after Aston Martin said in March it would widen its product offering for markets outside of Europe.

“Based on a conditional offer of an exceptional regional growth fund from the U.K. government, Aston Martin will commence work this year on new models intended to broaden its customer reach in export markets such as China and the Middle East,” it said.

“The U.K. government has committed support up to the value of £6.9 million ($10.4 million), conditional on investments in new products from Aston Martin.”

Aston Martin last year announced a £20 million ($30.3 million) plan to expand its production facilities with its Gaydon manufacturing plant getting a new chassis and pilot-build facility, new offices and an extension of its parts and logistics storage area.

Separately, Aston Martin Holdings reports the company had full-year 2014 revenues of £468 million ($708.5 million).

The company, headquartered in Gaydon, 85 miles (137 km) northwest of London, says it expects global demand for its luxury sports cars to remain high this year as it continues to develop and expand its model range starting with the first customer deliveries of the limited-edition, track-only Aston Martin Vulcan and the race-inspired Vantage GT12.