Aston Martin sues Italian supplier for freezing deliveries

Aston Martin has sued a key supplier that halted deliveries fearing that the carmaker would not pay its bills.

Warwickshire-based Aston Martin has been forced to take legal action against IMR Industries after the Italian manufacturer stopped deliveries of vital components.

IMR, which also supplies the likes of Ferrari and Maserati, is understood to have ceased shipments because of concerns that Aston Martin’s financial troubles would leave it unable to pay for the parts delivered. A source close to Aston Martin insisted the company always paid its suppliers on time.

It comes as Aston Martin, which is overseen by billionaire Lawrence Stroll, battles to stem years of losses and get debts under control. Like other carmakers, the luxury marque has also been buffeted by Donald Trump’s tariffs on vehicle imports, which prompted the company to temporarily suspend deliveries to the US this year.

IMR is understood to have stopped delivering parts to Aston Martin around a fortnight ago. Production has so far been unaffected by the disruption thanks to sufficient stockpiles.

However, Aston Martin has now taken legal action against IMR, filing a lawsuit for breach of contract in the UK’s High Court on June 19. An initial hearing was held last Thursday, where the case was adjourned while IMR builds its defence.

But a High Court judge issued a temporary injunction ordering IMR Industries to restart deliveries. Aston Martin has received supplies in the days since.

The carmaker is now seeking a permanent injunction to force IMR Industries to continue making deliveries for the remaining period of the contract. Aston Martin has enlisted lawyers from City firm Gowling WLG to make its case.

A spokesman for Aston Martin said: “In keeping with Aston Martin policy, we do not comment on ongoing litigation.”

IMR Industries and Gowling WLG were contacted for comment.

IMR was founded 60 years ago and has two sites based near Milan and Pescara in southern Italy. The manufacturer, which employs around 1,300 staff across six plants, makes exterior parts used on luxury cars as well as interior leather trims. Clients include Bentley, Ferrari, Maserati, BMW and Porsche.

Aston Martin has a multi-year contract with IMR to supply components, including both body and interior parts.

The clash comes as Aston Martin struggles to find a firm footing for its business. Shares have lost more than 90pc of their value since the company first listed on the London Stock Exchange in 2018 and Aston Martin has been through a succession of chief executives, each of whom has struggled to find a path to profitability.

Aston Martin issued back-to-back profits last year, blamed on issues with its supply chains and an economic slowdown in China. The company lost £289m last year and saw its debts jump by 43pc to £1.1bn.

It has also been severely affected by Mr Trump’s 25pc tariffs on all cars and car parts imported into the US. The levies caused Aston Martin to temporarily pause all shipments to America, a key market, for a month.

In February, Aston Martin outlined plans to cut 170 jobs in a bid to reduce its costs by £25m a year. It has also outlined plans to sell its stake in the Aston Martin Aramco Formula One Team for £125m to help reduce its debts.

The British carmaker, which was founded in 1913 and is known for its association with James Bond, is aiming to turn around its performance by ironing out issues with production that have dogged the business.

Adrian Hallmark, the chief executive who formerly ran Bentley, said this year his focus was on “operational execution and delivering financial sustainability”.

Mr Hallmark was appointed last year by Mr Stroll, the Canadian tycoon who seized control of Aston Martin in 2020 through a bailout.

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