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Autos

Aston Martin furloughing some staff after coronavirus plant closures

FILE PHOTO: A logo on the new Aston Martin DBX at the new Aston Martin Lagonda factory in Barry, Wales, Britain February 21, 2020. REUTERS/Rebecca Naden/Pool/File Photo

LONDON (Reuters) - Britain’s Aston Martin said on Monday it is furloughing some employees as it handles the fallout from the coronavirus outbreak which has closed its car factories.

The pandemic has shut both the luxury brand’s plants, just as it starts production of its first sport utility vehicle, the DBX, crucial to a turnaround after disappointing sales last year contributed to a plunge in its share price.

Employers in Britain can claim for 80% of wage costs for staff whom they place on temporary leave, up to 2,500 pounds a month per employee, as part of a government scheme designed to help businesses whose operations have been hit by the fallout.

“(We are) utilizing all government aid available,” the company said in a statement.

Aston confirmed its capital-raising plans on Monday that will see a consortium led by Canadian billionaire Lawrence Stroll take a stake in the company.

It said it was also taking action to control operating costs and capital expenditure and is accessing additional funding facilities. Its directors said they remain confident that the firm has enough working capital for at least the next 12 months.

The firm’s production sites are currently not scheduled to reopen until April 20 and the central England-based firm said deliveries of its DBX were “still planned for summer 2020 dependent on production and supply chain returning as currently anticipated.”

Reporting by Costas Pitas, Editing by Kylie MacLellan and Stephen Addison

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